Bill Text: IA SSB1272 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A study bill for an act relating to revenue and taxation by increasing the sales and use tax rates, establishing transfers to the natural resources and outdoor recreation trust fund, and including effective date provisions.
Spectrum: Unknown
Status: (Introduced - Dead) 2015-04-30 - Voted - Ways and Means. [SSB1272 Detail]
Download: Iowa-2015-SSB1272-Introduced.html
Senate
Study
Bill
1272
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
BOLKCOM)
A
BILL
FOR
An
Act
relating
to
revenue
and
taxation
by
increasing
the
sales
1
and
use
tax
rates,
establishing
transfers
to
the
natural
2
resources
and
outdoor
recreation
trust
fund,
and
including
3
effective
date
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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Section
1.
Section
423.2,
subsection
1,
unnumbered
1
paragraph
1,
Code
2015,
is
amended
to
read
as
follows:
2
There
is
imposed
a
tax
of
six
and
three-eighths
percent
upon
3
the
sales
price
of
all
sales
of
tangible
personal
property,
4
consisting
of
goods,
wares,
or
merchandise,
sold
at
retail
in
5
the
state
to
consumers
or
users
except
as
otherwise
provided
6
in
this
subchapter
.
7
Sec.
2.
Section
423.2,
subsections
2
and
3,
Code
2015,
are
8
amended
to
read
as
follows:
9
2.
A
tax
of
six
and
three-eighths
percent
is
imposed
upon
10
the
sales
price
of
the
sale
or
furnishing
of
gas,
electricity,
11
water,
heat,
pay
television
service,
and
communication
service,
12
including
the
sales
price
from
such
sales
by
any
municipal
13
corporation
or
joint
water
utility
furnishing
gas,
electricity,
14
water,
heat,
pay
television
service,
and
communication
service
15
to
the
public
in
its
proprietary
capacity,
except
as
otherwise
16
provided
in
this
subchapter
,
when
sold
at
retail
in
the
state
17
to
consumers
or
users.
18
3.
A
tax
of
six
and
three-eighths
percent
is
imposed
upon
19
the
sales
price
of
all
sales
of
tickets
or
admissions
to
places
20
of
amusement,
fairs,
and
athletic
events
except
those
of
21
elementary
and
secondary
educational
institutions.
A
tax
of
22
six
and
three-eighths
percent
is
imposed
on
the
sales
price
of
23
an
entry
fee
or
like
charge
imposed
solely
for
the
privilege
of
24
participating
in
an
activity
at
a
place
of
amusement,
fair,
or
25
athletic
event
unless
the
sales
price
of
tickets
or
admissions
26
charges
for
observing
the
same
activity
are
taxable
under
this
27
subchapter
.
A
tax
of
six
and
three-eighths
percent
is
imposed
28
upon
that
part
of
private
club
membership
fees
or
charges
paid
29
for
the
privilege
of
participating
in
any
athletic
sports
30
provided
club
members.
31
Sec.
3.
Section
423.2,
subsection
4,
paragraph
a,
Code
2015,
32
is
amended
to
read
as
follows:
33
a.
A
tax
of
six
and
three-eighths
percent
is
imposed
upon
34
the
sales
price
derived
from
the
operation
of
all
forms
of
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amusement
devices
and
games
of
skill,
games
of
chance,
raffles,
1
and
bingo
games
as
defined
in
chapter
99B
,
and
card
game
2
tournaments
conducted
under
section
99B.7B
,
that
are
operated
3
or
conducted
within
the
state,
the
tax
to
be
collected
from
4
the
operator
in
the
same
manner
as
for
the
collection
of
taxes
5
upon
the
sales
price
of
tickets
or
admission
as
provided
in
6
this
section
.
Nothing
in
this
subsection
shall
legalize
any
7
games
of
skill
or
chance
or
slot-operated
devices
which
are
now
8
prohibited
by
law.
9
Sec.
4.
Section
423.2,
subsection
5,
Code
2015,
is
amended
10
to
read
as
follows:
11
5.
There
is
imposed
a
tax
of
six
and
three-eighths
percent
12
upon
the
sales
price
from
the
furnishing
of
services
as
defined
13
in
section
423.1
.
14
Sec.
5.
Section
423.2,
subsection
7,
paragraph
a,
15
unnumbered
paragraph
1,
Code
2015,
is
amended
to
read
as
16
follows:
17
A
tax
of
six
and
three-eighths
percent
is
imposed
upon
the
18
sales
price
from
the
sales,
furnishing,
or
service
of
solid
19
waste
collection
and
disposal
service.
20
Sec.
6.
Section
423.2,
subsection
8,
paragraph
a,
Code
2015,
21
is
amended
to
read
as
follows:
22
a.
A
tax
of
six
and
three-eighths
percent
is
imposed
on
23
the
sales
price
from
sales
of
bundled
transactions.
For
the
24
purposes
of
this
subsection
,
a
“bundled
transaction”
is
the
25
retail
sale
of
two
or
more
distinct
and
identifiable
products,
26
except
real
property
and
services
to
real
property,
which
27
are
sold
for
one
nonitemized
price.
A
“bundled
transaction”
28
does
not
include
the
sale
of
any
products
in
which
the
sales
29
price
varies,
or
is
negotiable,
based
on
the
selection
by
the
30
purchaser
of
the
products
included
in
the
transaction.
31
Sec.
7.
Section
423.2,
subsection
9,
Code
2015,
is
amended
32
to
read
as
follows:
33
9.
A
tax
of
six
and
three-eighths
percent
is
imposed
upon
34
the
sales
price
from
any
mobile
telecommunications
service,
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including
all
paging
services,
that
this
state
is
allowed
1
to
tax
pursuant
to
the
provisions
of
the
federal
Mobile
2
Telecommunications
Sourcing
Act,
Pub.
L.
No.
106-252,
4
U.S.C.
3
§116
et
seq.
For
purposes
of
this
subsection
,
taxes
on
mobile
4
telecommunications
service,
as
defined
under
the
federal
Mobile
5
Telecommunications
Sourcing
Act
that
are
deemed
to
be
provided
6
by
the
customer’s
home
service
provider,
shall
be
paid
to
7
the
taxing
jurisdiction
whose
territorial
limits
encompass
8
the
customer’s
place
of
primary
use,
regardless
of
where
the
9
mobile
telecommunications
service
originates,
terminates,
10
or
passes
through
and
shall
in
all
other
respects
be
taxed
11
in
conformity
with
the
federal
Mobile
Telecommunications
12
Sourcing
Act.
All
other
provisions
of
the
federal
Mobile
13
Telecommunications
Sourcing
Act
are
adopted
by
the
state
of
14
Iowa
and
incorporated
into
this
subsection
by
reference.
With
15
respect
to
mobile
telecommunications
service
under
the
federal
16
Mobile
Telecommunications
Sourcing
Act,
the
director
shall,
if
17
requested,
enter
into
agreements
consistent
with
the
provisions
18
of
the
federal
Act.
19
Sec.
8.
Section
423.2,
subsection
11,
paragraph
b,
20
subparagraph
(2),
Code
2015,
is
amended
to
read
as
follows:
21
(2)
Transfer
from
the
remaining
revenues
the
amounts
22
required
under
Article
VII,
section
10,
of
the
Constitution
23
of
the
State
of
Iowa
to
the
natural
resources
and
outdoor
24
recreation
trust
fund
created
in
section
461.31
,
if
applicable
.
25
Sec.
9.
Section
423.2,
subsection
13,
Code
2015,
is
amended
26
to
read
as
follows:
27
13.
The
sales
tax
rate
of
six
and
three-eighths
percent
is
28
reduced
to
five
and
three-eighths
percent
on
January
1,
2030.
29
Sec.
10.
Section
423.5,
subsection
1,
unnumbered
paragraph
30
1,
Code
2015,
is
amended
to
read
as
follows:
31
Except
as
provided
in
paragraph
“c”
,
an
excise
tax
at
the
32
rate
of
six
and
three-eighths
percent
of
the
purchase
price
or
33
installed
purchase
price
is
imposed
on
the
following:
34
Sec.
11.
Section
423.5,
subsection
5,
Code
2015,
is
amended
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to
read
as
follows:
1
5.
The
use
tax
rate
of
six
and
three-eighths
percent
is
2
reduced
to
five
and
three-eighths
percent
on
January
1,
2030.
3
Sec.
12.
Section
423.43,
subsection
1,
paragraph
b,
Code
4
2015,
is
amended
to
read
as
follows:
5
b.
Subsequent
to
the
deposit
into
the
general
fund
of
the
6
state
and
after
the
transfer
of
such
pursuant
to
paragraph
“a”
,
7
the
department
shall
do
the
following
in
the
order
prescribed:
8
(1)
Transfer
the
revenues
collected
under
chapter
423B
,
the
9
department
shall
transfer
one-sixth
.
10
(2)
Transfer
fifteen
and
six
thousand
eight
hundred
11
sixty-three
ten-thousandths
percent
of
such
remaining
revenues
12
to
the
secure
an
advanced
vision
for
education
fund
created
in
13
section
423F.2
.
This
paragraph
subparagraph
(2)
is
repealed
14
December
31,
2029.
15
Sec.
13.
PURPOSE.
The
purpose
of
this
Act
is
to
provide
16
for
the
implementation
of
Article
VII,
section
10,
of
the
17
Constitution
of
the
State
of
Iowa
by
fully
funding
the
natural
18
resources
and
outdoor
recreation
trust
fund
as
created
in
19
section
461.31,
pursuant
to
Article
VII,
section
10,
of
the
20
Constitution
of
the
State
of
Iowa.
21
Sec.
14.
EFFECTIVE
DATE.
This
Act
takes
effect
on
July
1,
22
2016.
23
EXPLANATION
24
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
25
the
explanation’s
substance
by
the
members
of
the
general
assembly.
26
This
bill
relates
to
state
sales
and
use
taxes
and
to
an
27
amendment
to
the
Iowa
Constitution
ratified
on
November
2,
28
2010,
which
created
a
natural
resources
and
outdoor
recreation
29
trust
fund
(fund)
and
dedicated
a
portion
of
state
revenues
to
30
the
fund
for
the
purposes
of
protecting
and
enhancing
water
31
quality
and
natural
areas
in
the
state
including
parks,
trails,
32
and
fish
and
wildlife
habitat,
and
conserving
agricultural
33
soils
in
the
state
(Article
VII,
section
10).
The
fund
is
34
codified
in
Code
section
461.31.
Pursuant
to
the
amendment,
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the
amount
credited
to
the
fund
will
be
equal
to
the
amount
1
generated
by
an
increase
in
the
state
sales
tax
rate
occurring
2
after
the
effective
date
of
the
constitutional
amendment,
but
3
shall
not
exceed
the
amount
that
a
state
sales
tax
rate
of
4
0.375
percent
would
generate.
The
state
sales
tax
rate
has
not
5
been
increased
since
the
effective
date
of
the
constitutional
6
amendment,
so
no
amounts
have
been
credited
to
the
fund.
The
7
bill
increases
from
6
percent
to
6.375
percent
the
state
8
sales
tax
rate
and
the
state
use
tax
rate,
and
provides
for
9
the
transfer
of
sales
tax
revenues
to
the
fund.
The
bill
10
also
amends
the
transfer
of
use
tax
revenues
to
the
secure
11
an
advanced
vision
for
education
fund
(SAVE)
in
Code
section
12
423F.2
from
1/6th
(approximately
16.66
percent)
of
the
revenues
13
to
15.6863
percent
of
the
revenues
to
ensure
that
SAVE
receives
14
approximately
the
same
proportion
of
the
total
use
tax
revenue
15
as
it
did
prior
to
the
use
tax
rate
increase
provided
in
the
16
bill.
17
The
bill
takes
effect
July
1,
2016.
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