Bill Text: IA SSB3157 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act relating to state and local revenue and finances by modifying sales and use taxes, the charitable conservation contribution tax credit available against individual and corporate income taxes, the automobile rental excise tax, the water service tax, and local option taxes, crediting moneys to the natural resources and outdoor recreation trust fund, making appropriations, and including effective date and applicability provisions.
Spectrum: Committee Bill
Status: (Introduced - Dead) 2022-03-22 - Subcommittee Meeting: 03/23/2022 8:30AM Room G17. [SSB3157 Detail]
Download: Iowa-2021-SSB3157-Introduced.html
Senate
Study
Bill
3157
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
DAWSON)
A
BILL
FOR
An
Act
relating
to
state
and
local
revenue
and
finances
by
1
modifying
sales
and
use
taxes,
the
charitable
conservation
2
contribution
tax
credit
available
against
individual
and
3
corporate
income
taxes,
the
automobile
rental
excise
tax,
4
the
water
service
tax,
and
local
option
taxes,
crediting
5
moneys
to
the
natural
resources
and
outdoor
recreation
trust
6
fund,
making
appropriations,
and
including
effective
date
7
and
applicability
provisions.
8
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
9
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DIVISION
I
1
SALES
AND
USE
TAX
RATES
AND
DISTRIBUTION
2
Section
1.
Section
423.2,
subsection
1,
unnumbered
3
paragraph
1,
Code
2022,
is
amended
to
read
as
follows:
4
There
is
imposed
a
tax
of
six
percent
at
the
rate
specified
5
in
subsection
12
upon
the
sales
price
of
all
sales
of
tangible
6
personal
property,
sold
at
retail
in
the
state
to
consumers
or
7
users
except
as
otherwise
provided
in
this
subchapter
.
8
Sec.
2.
Section
423.2,
subsections
2
and
3,
Code
2022,
are
9
amended
to
read
as
follows:
10
2.
A
tax
of
six
percent
at
the
rate
specified
in
subsection
11
12
is
imposed
upon
the
sales
price
of
the
sale
or
furnishing
12
of
gas,
electricity,
water,
heat,
pay
television
service,
and
13
communication
service,
including
the
sales
price
from
such
14
sales
by
any
municipal
corporation
or
joint
water
utility
15
furnishing
gas,
electricity,
water,
heat,
pay
television
16
service,
and
communication
service
to
the
public
in
its
17
proprietary
capacity,
except
as
otherwise
provided
in
this
18
subchapter
,
when
sold
at
retail
in
the
state
to
consumers
or
19
users.
20
3.
A
tax
of
six
percent
at
the
rate
specified
in
subsection
21
12
is
imposed
upon
the
sales
price
of
all
sales
of
tickets
22
or
admissions
to
places
of
amusement,
fairs,
and
athletic
23
events
except
those
of
elementary
and
secondary
educational
24
institutions.
A
tax
of
six
percent
at
the
rate
specified
in
25
subsection
12
is
imposed
on
the
sales
price
of
an
entry
fee
or
26
like
charge
imposed
solely
for
the
privilege
of
participating
27
in
an
activity
at
a
place
of
amusement,
fair,
or
athletic
event
28
unless
the
sales
price
of
tickets
or
admissions
charges
for
29
observing
the
same
activity
are
taxable
under
this
subchapter
.
30
A
tax
of
six
percent
at
the
rate
specified
in
subsection
12
31
is
imposed
upon
that
part
of
private
club
membership
fees
or
32
charges
paid
for
the
privilege
of
participating
in
any
athletic
33
sports
provided
club
members.
34
Sec.
3.
Section
423.2,
subsection
4,
paragraph
a,
Code
2022,
35
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is
amended
to
read
as
follows:
1
a.
A
tax
of
six
percent
at
the
rate
specified
in
subsection
2
12
is
imposed
upon
the
sales
price
derived
from
the
operation
3
of
all
forms
of
amusement
devices
and
games
of
skill,
games
of
4
chance,
raffles,
and
bingo
games
as
defined
in
chapter
99B
,
and
5
card
game
tournaments
conducted
under
section
99B.27
,
that
are
6
operated
or
conducted
within
the
state,
the
tax
to
be
collected
7
from
the
operator
in
the
same
manner
as
for
the
collection
of
8
taxes
upon
the
sales
price
of
tickets
or
admission
as
provided
9
in
this
section
.
Nothing
in
this
subsection
shall
legalize
any
10
games
of
skill
or
chance
or
slot-operated
devices
which
are
now
11
prohibited
by
law.
12
Sec.
4.
Section
423.2,
subsection
5,
Code
2022,
is
amended
13
to
read
as
follows:
14
5.
There
is
imposed
a
tax
of
six
percent
at
the
rate
15
specified
in
subsection
12
upon
the
sales
price
from
the
16
furnishing
of
services
as
defined
in
section
423.1
.
17
Sec.
5.
Section
423.2,
subsection
7,
paragraph
a,
18
unnumbered
paragraph
1,
Code
2022,
is
amended
to
read
as
19
follows:
20
A
tax
of
six
percent
at
the
rate
specified
in
subsection
12
21
is
imposed
upon
the
sales
price
from
the
sales,
furnishing,
or
22
service
of
solid
waste
collection
and
disposal
service.
23
Sec.
6.
Section
423.2,
subsection
8,
paragraph
a,
Code
2022,
24
is
amended
to
read
as
follows:
25
a.
A
tax
of
six
percent
at
the
rate
specified
in
subsection
26
12
is
imposed
on
the
sales
price
from
sales
of
bundled
27
transactions.
For
the
purposes
of
this
subsection
,
a
“bundled
28
transaction”
is
the
retail
sale
of
two
or
more
distinct
and
29
identifiable
products,
except
real
property
and
services
to
30
real
property,
which
are
sold
for
one
nonitemized
price.
A
31
“bundled
transaction”
does
not
include
the
sale
of
any
products
32
in
which
the
sales
price
varies,
or
is
negotiable,
based
on
33
the
selection
by
the
purchaser
of
the
products
included
in
the
34
transaction.
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Sec.
7.
Section
423.2,
subsection
9,
Code
2022,
is
amended
1
to
read
as
follows:
2
9.
A
tax
of
six
percent
at
the
rate
specified
in
3
subsection
12
is
imposed
upon
the
sales
price
from
any
mobile
4
telecommunications
service,
including
all
paging
services,
5
that
this
state
is
allowed
to
tax
pursuant
to
the
provisions
6
of
the
federal
Mobile
Telecommunications
Sourcing
Act,
Pub.
7
L.
No.
106-252,
4
U.S.C.
§116
et
seq.
For
purposes
of
this
8
subsection
,
taxes
on
mobile
telecommunications
service,
as
9
defined
under
the
federal
Mobile
Telecommunications
Sourcing
10
Act
that
are
deemed
to
be
provided
by
the
customer’s
home
11
service
provider,
shall
be
paid
to
the
taxing
jurisdiction
12
whose
territorial
limits
encompass
the
customer’s
place
of
13
primary
use,
regardless
of
where
the
mobile
telecommunications
14
service
originates,
terminates,
or
passes
through
and
15
shall
in
all
other
respects
be
taxed
in
conformity
with
16
the
federal
Mobile
Telecommunications
Sourcing
Act.
All
17
other
provisions
of
the
federal
Mobile
Telecommunications
18
Sourcing
Act
are
adopted
by
the
state
of
Iowa
and
incorporated
19
into
this
subsection
by
reference.
With
respect
to
mobile
20
telecommunications
service
under
the
federal
Mobile
21
Telecommunications
Sourcing
Act,
the
director
shall,
if
22
requested,
enter
into
agreements
consistent
with
the
provisions
23
of
the
federal
Act.
24
Sec.
8.
Section
423.2,
subsection
10,
paragraph
a,
Code
25
2022,
is
amended
to
read
as
follows:
26
a.
A
tax
of
six
percent
at
the
rate
specified
in
subsection
27
12
is
imposed
on
the
sales
price
of
specified
digital
products
28
sold
at
retail
in
the
state.
The
tax
applies
whether
the
29
purchaser
obtains
permanent
use
or
less
than
permanent
use
of
30
the
specified
digital
product,
whether
the
sale
is
conditioned
31
or
not
conditioned
upon
continued
payment
from
the
purchaser,
32
and
whether
the
sale
is
on
a
subscription
basis
or
is
not
on
a
33
subscription
basis.
34
Sec.
9.
Section
423.2,
subsection
12,
Code
2022,
is
amended
35
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by
striking
the
subsection
and
inserting
in
lieu
thereof
the
1
following:
2
12.
a.
For
the
period
beginning
January
1,
2023,
through
3
December
31,
2050,
the
sales
tax
rate
is
seven
percent.
4
b.
Beginning
January
1,
2051,
the
sales
tax
rate
is
six
5
percent.
6
Sec.
10.
Section
423.2A,
subsection
2,
paragraphs
a,
b,
and
7
c,
Code
2022,
are
amended
to
read
as
follows:
8
a.
(1)
Transfer
For
the
period
beginning
January
1,
2023,
9
through
December
31,
2050,
transfer
one-seventh
of
the
revenues
10
collected
under
deposited
into
the
general
fund
of
the
state
11
under
subsection
1
to
the
appropriate
county
accounts
under
12
chapter
423B
for
the
counties
from
which
the
tax
was
collected
.
13
(2)
Beginning
January
1,
2051,
transfer
one-sixth
of
the
14
revenues
deposited
into
the
general
fund
of
the
state
under
15
subsection
1
to
the
appropriate
county
accounts
under
chapter
16
423B
for
the
counties
from
which
the
tax
was
collected.
17
b.
Transfer
from
the
remaining
revenues
the
amounts
required
18
under
Article
VII,
section
10,
of
the
Constitution
of
the
State
19
of
Iowa
to
the
natural
resources
and
outdoor
recreation
trust
20
fund
created
in
section
461.31
,
if
applicable
.
21
c.
Transfer
one-sixth
of
from
the
remaining
revenues
an
22
amount
equal
to
one-seventh
of
the
revenues
deposited
into
the
23
general
fund
of
the
state
under
subsection
1
to
the
secure
an
24
advanced
vision
for
education
fund
created
in
section
423F.2
.
25
This
paragraph
“c”
is
repealed
January
1,
2051.
26
Sec.
11.
Section
423.5,
subsection
1,
unnumbered
paragraph
27
1,
Code
2022,
is
amended
to
read
as
follows:
28
Except
as
provided
in
paragraph
“b”
,
an
excise
tax
at
the
29
rate
of
six
percent
specified
in
subsection
4
of
the
purchase
30
price
or
installed
purchase
price
is
imposed
on
the
following:
31
Sec.
12.
Section
423.5,
subsection
4,
Code
2022,
is
amended
32
by
striking
the
subsection
and
inserting
in
lieu
thereof
the
33
following:
34
4.
a.
For
the
period
beginning
January
1,
2023,
through
35
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December
31,
2050,
the
use
tax
rate
is
seven
percent.
1
b.
Beginning
January
1,
2051,
the
use
tax
rate
is
six
2
percent.
3
Sec.
13.
Section
423.43,
subsection
1,
paragraph
b,
Code
4
2022,
is
amended
by
striking
the
paragraph
and
inserting
in
5
lieu
thereof
the
following:
6
b.
Subsequent
to
the
deposit
into
the
general
fund
of
7
the
state
the
department
shall
do
the
following
in
the
order
8
prescribed:
9
(1)
(a)
For
the
period
beginning
January
1,
2023,
through
10
December
31,
2042,
transfer
one-seventh
of
such
revenues
to
the
11
local
use
tax
supplement
fund.
12
(b)
For
the
period
beginning
January
1,
2043,
through
13
December
31,
2050,
transfer
one-seventh
of
such
revenues
to
the
14
appropriate
county
accounts
under
chapter
423B
for
the
counties
15
from
which
the
tax
was
paid.
16
(c)
Beginning
January
1,
2051,
transfer
one-sixth
of
such
17
revenues
to
the
appropriate
county
accounts
under
chapter
423B
18
for
the
counties
from
which
the
tax
was
paid.
19
(2)
Transfer
one-sixth
of
such
remaining
revenues
to
the
20
secure
an
advanced
vision
for
education
fund
created
in
section
21
423F.2.
This
subparagraph
is
repealed
January
1,
2051.
22
Sec.
14.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
23
effect
January
1,
2023.
24
DIVISION
II
25
AUTOMOBILE
RENTAL
EXCISE
TAX
26
Sec.
15.
Section
423C.3,
subsection
1,
Code
2022,
is
amended
27
to
read
as
follows:
28
1.
A
tax
of
five
seven
percent
is
imposed
upon
the
rental
29
price
of
an
automobile
if
the
rental
transaction
is
subject
30
to
the
sales
tax
under
chapter
423,
subchapter
II
,
or
the
use
31
tax
under
chapter
423,
subchapter
III
.
The
tax
shall
not
be
32
imposed
on
any
rental
transaction
not
taxable
under
the
state
33
sales
tax,
as
provided
in
section
423.3
,
or
the
state
use
tax,
34
as
provided
in
section
423.6
,
on
automobile
rental
receipts.
35
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Sec.
16.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
1
effect
January
1,
2023.
2
DIVISION
III
3
WATER
SERVICE
TAX
4
Sec.
17.
Section
423G.3,
Code
2022,
is
amended
to
read
as
5
follows:
6
423G.3
Water
service
tax.
7
An
excise
tax
at
the
rate
of
six
seven
percent
is
imposed
on
8
the
sales
price
from
the
sale
or
furnishing
by
a
water
utility
9
of
a
water
service
in
the
state
to
consumers
or
users.
10
Sec.
18.
Section
423G.6,
subsection
2,
Code
2022,
is
amended
11
by
striking
the
subsection.
12
Sec.
19.
REPEAL.
Chapter
423G.7,
Code
2022,
is
repealed.
13
Sec.
20.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
14
effect
January
1,
2023.
15
DIVISION
IV
16
CHARITABLE
CONSERVATION
CONTRIBUTION
TAX
CREDIT
17
Sec.
21.
Section
2.48,
subsection
3,
paragraph
e,
18
subparagraph
(6),
Code
2022,
is
amended
by
striking
the
19
subparagraph.
20
Sec.
22.
Section
422.11W,
Code
2022,
is
amended
by
adding
21
the
following
new
subsection:
22
NEW
SUBSECTION
.
5.
Commencing
with
tax
years
beginning
23
on
or
after
January
1,
2023,
a
charitable
conservation
24
contribution
tax
credit
shall
not
be
claimed
against
taxes
as
25
provided
in
this
section,
except
for
tax
credits
claimed
for
26
qualified
real
property
interests
conveyed
prior
to
January
1,
27
2023.
28
Sec.
23.
Section
422.33,
subsection
25,
Code
2022,
is
29
amended
by
striking
the
subsection
and
inserting
in
lieu
30
thereof
the
following:
31
25.
The
taxes
imposed
under
this
subchapter
shall
be
reduced
32
by
a
charitable
conservation
contribution
tax
credit
as
allowed
33
under
section
422.11W
for
each
tax
year
the
taxpayer
has
34
credit,
in
excess
of
tax
liability,
for
qualified
real
property
35
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interests
conveyed
prior
to
January
1,
2023.
1
Sec.
24.
PRESERVATION
OF
EXISTING
RIGHTS.
This
division
2
of
this
Act
is
not
intended
to
and
shall
not
limit,
modify,
or
3
otherwise
adversely
affect
any
amount
of
tax
credit
issued,
4
awarded,
or
allowed
prior
to
January
1,
2023,
nor
shall
it
5
limit,
modify,
or
otherwise
adversely
affect
a
taxpayer’s
right
6
to
claim
or
redeem
a
tax
credit
issued,
awarded,
or
allowed
7
prior
to
January
1,
2023,
including
but
not
limited
to
any
tax
8
credit
carryforward
amount.
9
Sec.
25.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
10
effect
January
1,
2023.
11
Sec.
26.
APPLICABILITY.
This
division
of
this
Act
applies
12
to
tax
years
beginning
on
or
after
January
1,
2023.
13
DIVISION
V
14
LOCAL
OPTION
TAXES
15
Sec.
27.
Section
15J.7,
subsection
2,
Code
2022,
is
amended
16
to
read
as
follows:
17
2.
In
addition
to
the
moneys
received
pursuant
to
section
18
15J.6
,
a
municipality
may
deposit
in
the
reinvestment
project
19
fund
any
other
moneys
lawfully
at
the
municipality’s
disposal,
20
including
but
not
limited
to
local
sales
and
services
tax
21
receipts
collected
revenues
received
under
chapter
423B
if
such
22
use
is
a
purpose
authorized
for
the
municipality
under
chapter
23
423B
.
24
Sec.
28.
Section
28A.17,
Code
2022,
is
amended
to
read
as
25
follows:
26
28A.17
Local
sales
and
services
tax.
27
1.
If
an
authority
is
established
as
provided
in
section
28
28A.6
and
after
approval
of
a
referendum
by
a
simple
majority
29
of
votes
cast
in
each
metropolitan
area
in
favor
of
the
sales
30
and
services
tax,
the
governing
board
of
a
county
in
this
state
31
within
a
metropolitan
area
which
is
part
of
the
authority
shall
32
impose,
at
the
request
of
the
authority,
a
local
sales
and
33
services
tax
at
the
rate
of
one-fourth
of
one
percent
on
the
34
sales
price
taxed
by
this
state
under
section
423.2
,
within
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the
metropolitan
area
located
in
this
state.
The
referendum
1
shall
be
called
by
resolution
of
the
board
and
shall
be
held
2
as
provided
in
section
28A.6
to
the
extent
applicable.
The
3
ballot
proposition
shall
contain
a
statement
as
to
the
specific
4
purpose
or
purposes
for
which
the
revenues
shall
be
expended
5
and
the
date
of
expiration
of
the
tax.
The
local
sales
and
6
services
tax
shall
be
imposed
on
the
same
basis,
with
the
same
7
exceptions,
and
following
the
same
administrative
procedures
as
8
provided
for
a
county
under
sections
423B.5
and
423B.6
,
Code
9
2022
.
The
amount
of
the
sale,
for
the
purposes
of
determining
10
the
amount
of
the
local
sales
and
services
tax
under
this
11
section
,
does
not
include
the
amount
of
any
local
sales
and
12
services
tax
imposed
under
sections
423B.5
and
423B.6
,
Code
13
2022
.
14
2.
The
treasurer
of
state
shall
credit
the
local
sales
15
and
services
tax
receipts
and
interest
and
penalties
to
the
16
authority’s
account.
Moneys
in
this
account
shall
be
remitted
17
quarterly
to
the
authority.
The
proceeds
of
the
tax
imposed
18
under
this
section
shall
be
used
only
for
the
construction,
19
reconstruction,
or
repair
of
metropolitan
facilities
as
20
specified
in
the
referendum.
The
local
sales
and
services
tax
21
imposed
under
this
section
may
be
suspended
for
not
less
than
22
a
fiscal
quarter
or
more
than
one
year
by
action
of
the
board.
23
The
suspension
may
be
renewed
or
continued
by
the
board,
but
24
the
board
shall
act
on
the
suspension
at
least
annually.
25
The
local
sales
and
services
tax
may
also
be
repealed
by
a
26
petition
and
favorable
referendum
following
the
procedures
and
27
requirements
of
sections
28A.5
and
28A.6
as
applicable.
The
28
board
shall
give
the
department
of
revenue
at
least
forty
days’
29
notice
of
the
repeal,
suspension,
or
reinstatement
of
the
tax
30
and
the
effective
dates
for
imposition,
suspension,
or
repeal
31
of
the
tax
shall
be
as
provided
in
section
423B.6
,
Code
2022
.
32
3.
A
local
sales
and
services
tax
authorized
under
this
33
section
shall
not
be
imposed
or
collected
on
or
after
January
34
1,
2023.
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Sec.
29.
Section
76.4,
Code
2022,
is
amended
to
read
as
1
follows:
2
76.4
Permissive
application
of
funds.
3
Whenever
the
governing
authority
of
such
political
4
subdivision
shall
have
on
hand
funds
derived
from
any
other
5
source
than
taxation
which
may
be
appropriated
to
the
payment
6
either
of
interest
or
principal,
or
both
principal
and
interest
7
of
such
bonds,
such
funds
may
be
so
appropriated
and
used
8
and
the
levy
for
the
payment
of
the
bonds
correspondingly
9
reduced.
This
section
shall
not
restrict
the
authority
of
a
10
political
subdivision
to
apply
sales
and
services
tax
receipts
11
collected
received
pursuant
to
chapter
423B
for
such
purpose.
12
Notwithstanding
section
423F.3
,
a
school
district
may
apply
tax
13
receipts
received
pursuant
to
chapter
423F
for
the
purposes
of
14
this
section
.
15
Sec.
30.
Section
99B.1,
subsection
23,
Code
2022,
is
amended
16
to
read
as
follows:
17
23.
“Net
receipts”
means
gross
receipts
less
amounts
awarded
18
as
prizes
and
less
state
and
local
sales
tax
paid
upon
the
19
gross
receipts.
20
Sec.
31.
Section
99B.14,
subsection
1,
Code
2022,
is
amended
21
to
read
as
follows:
22
1.
A
licensed
qualified
organization
shall
certify
23
that
the
receipts
from
all
charitable
gambling
conducted
24
by
the
organization
under
this
chapter
,
less
reasonable
25
expenses,
charges,
fees,
taxes,
and
deductions,
either
will
26
be
distributed
as
prizes
to
participants
or
will
be
dedicated
27
and
distributed
for
educational,
civic,
public,
charitable,
28
patriotic,
or
religious
uses.
Reasonable
expenses,
charges,
29
fees,
taxes
other
than
the
state
and
local
sales
tax,
and
30
deductions
allowed
by
the
department
shall
not
exceed
forty
31
percent
of
net
receipts.
32
Sec.
32.
Section
99G.4,
subsection
2,
Code
2022,
is
amended
33
to
read
as
follows:
34
2.
The
income
and
property
of
the
authority
shall
be
exempt
35
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from
all
state
and
local
taxes,
and
the
sale
of
lottery
tickets
1
and
shares
issued
and
sold
by
the
authority
and
its
retail
2
licensees
shall
be
exempt
from
all
state
and
local
sales
taxes.
3
Sec.
33.
Section
99G.30A,
subsection
2,
paragraph
a,
Code
4
2022,
is
amended
to
read
as
follows:
5
a.
The
director
of
revenue
shall
administer
the
monitor
6
vending
machine
excise
tax
as
nearly
as
possible
in
conjunction
7
with
the
administration
of
state
sales
tax
laws.
The
director
8
shall
provide
appropriate
forms
or
provide
appropriate
entries
9
on
the
regular
state
tax
forms
for
reporting
local
sales
and
10
services
tax
liability.
11
Sec.
34.
Section
279.63,
subsection
2,
paragraph
a,
Code
12
2022,
is
amended
to
read
as
follows:
13
a.
All
property
tax
levies
,
and
income
surtaxes
,
and
local
14
option
sales
taxes
in
place
in
the
school
district,
listed
by
15
type
of
levy,
rate,
amount,
duration,
and
notification
of
the
16
maximum
rate
and
amount
limitations
permitted
by
statute.
17
Sec.
35.
Section
321.40,
subsection
5,
Code
2022,
is
amended
18
by
striking
the
subsection.
19
Sec.
36.
Section
321.130,
Code
2022,
is
amended
to
read
as
20
follows:
21
321.130
Fees
in
lieu
of
taxes.
22
The
registration
fees
imposed
by
this
chapter
upon
private
23
passenger
motor
vehicles
or
semitrailers
are
in
lieu
of
all
24
state
and
local
taxes
,
except
local
vehicle
taxes,
to
which
25
motor
vehicles
or
semitrailers
are
subject.
26
Sec.
37.
Section
418.13,
subsection
2,
Code
2022,
is
amended
27
to
read
as
follows:
28
2.
In
addition
to
the
moneys
received
pursuant
to
section
29
418.10
or
418.12
,
a
governmental
entity
may
deposit
in
the
30
flood
project
fund
any
other
moneys
lawfully
received
by
the
31
governmental
entity,
including
but
not
limited
to
local
sales
32
and
services
tax
receipts
collected
amounts
received
under
33
chapter
423B
.
34
Sec.
38.
Section
421.26,
Code
2022,
is
amended
to
read
as
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follows:
1
421.26
Personal
liability
for
tax
due.
2
If
a
licensee
or
other
person
under
section
452A.65
,
a
3
retailer
or
purchaser
under
chapter
423A
,
423B
,
423C
,
423D
,
4
or
423E
,
or
section
423.14
,
423.14A
,
423.29
,
423.31
,
423.32
,
5
or
423.33
,
or
a
user
under
section
423.34
,
or
a
permit
holder
6
or
licensee
under
section
453A.13
,
453A.16
,
or
453A.44
fails
7
to
pay
a
tax
under
those
sections
when
due,
an
officer
of
a
8
corporation
or
association,
notwithstanding
section
489.304
,
9
a
member
or
manager
of
a
limited
liability
company,
or
a
10
partner
of
a
partnership,
having
control
or
supervision
of
11
or
the
authority
for
remitting
the
tax
payments
and
having
12
a
substantial
legal
or
equitable
interest
in
the
ownership
13
of
the
corporation,
association,
limited
liability
company,
14
or
partnership,
who
has
intentionally
failed
to
pay
the
tax
15
is
personally
liable
for
the
payment
of
the
tax,
interest,
16
and
penalty
due
and
unpaid.
However,
this
section
shall
17
not
apply
to
taxes
on
accounts
receivable.
The
dissolution
18
of
a
corporation,
association,
limited
liability
company,
19
or
partnership
shall
not
discharge
a
person’s
liability
for
20
failure
to
remit
the
tax
due.
21
Sec.
39.
Section
421.28,
Code
2022,
is
amended
to
read
as
22
follows:
23
421.28
Exceptions
to
successor
liability.
24
The
immediate
successor
to
a
licensee’s
or
retailer’s
25
business
or
stock
of
goods
under
chapter
423A
or
423B
,
or
26
section
423.33
or
452A.65
,
is
not
personally
liable
for
27
the
amount
of
delinquent
tax,
interest,
or
penalty
due
and
28
unpaid
if
the
immediate
successor
shows
that
the
purchase
of
29
the
business
or
stock
of
goods
was
made
in
good
faith
that
30
no
delinquent
tax,
interest,
or
penalty
was
due
and
unpaid.
31
For
purposes
of
this
section
the
immediate
successor
shows
32
good
faith
by
evidence
that
the
department
had
provided
33
the
immediate
successor
with
a
certified
statement
that
34
no
delinquent
tax,
interest,
or
penalty
is
unpaid,
or
that
35
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the
immediate
successor
had
taken
in
good
faith
a
certified
1
statement
from
the
licensee,
retailer,
or
seller
that
no
2
delinquent
tax,
interest,
or
penalty
is
unpaid.
When
requested
3
to
do
so
by
a
person
with
whom
the
licensee
or
retailer
is
4
negotiating
the
sale
of
the
business
or
stock
of
goods,
the
5
director
of
revenue
shall,
upon
being
satisfied
that
such
6
a
situation
exists,
inform
that
person
as
to
the
amount
of
7
unpaid
delinquent
tax,
interest,
or
penalty
due
by
the
licensee
8
or
the
retailer.
The
giving
of
the
information
under
this
9
circumstance
is
not
a
violation
of
section
422.20
,
422.72
,
or
10
452A.63
.
11
Sec.
40.
Section
421.60,
subsection
2,
paragraph
m,
12
subparagraphs
(1)
and
(2),
Code
2022,
are
amended
to
read
as
13
follows:
14
(1)
The
director
may
abate
unpaid
state
sales
and
use
15
taxes
and
local
sales
and
services
taxes
owed
by
a
retailer
16
in
the
event
that
the
retailer
failed
to
collect
tax
from
the
17
purchaser
as
a
result
of
erroneous
written
advice
issued
by
18
the
department
that
was
specially
directed
to
the
retailer
19
by
the
department
and
the
retailer
is
unable
to
collect
the
20
tax,
interest,
or
penalties
from
the
purchaser.
Before
the
21
tax,
interest,
and
penalties
shall
be
abated
on
the
basis
of
22
erroneous
written
advice,
the
retailer
must
present
a
copy
of
23
the
retailer’s
request
for
written
advice
to
the
department
and
24
a
copy
of
the
department’s
reply.
The
department
shall
not
25
maintain
a
position
against
the
retailer
that
is
inconsistent
26
with
the
erroneous
written
advice,
except
on
the
basis
of
27
subsequent
written
advice
sent
by
the
department
to
that
28
retailer,
or
a
change
in
state
or
federal
law,
a
reported
29
court
case
to
the
contrary,
a
contrary
rule
adopted
by
the
30
department,
a
change
in
material
facts
or
circumstances
31
relating
to
the
retailer,
or
the
retailer’s
misrepresentation
32
or
incomplete
or
inadequate
representation
of
material
facts
33
and
circumstances
in
requesting
the
written
advice.
34
(2)
(a)
The
director
shall
abate
the
unpaid
state
sales
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and
use
taxes
and
any
local
sales
and
services
taxes
owed
by
a
1
retailer
where
the
retailer
failed
to
collect
the
tax
from
the
2
purchaser
on
the
charges
paid
for
access
to
on-line
computer
3
services
as
a
result
of
erroneous
written
advice
issued
by
the
4
department
regarding
the
taxability
of
charges
paid
for
access
5
to
on-line
computer
services.
To
qualify
for
the
abatement
6
under
this
subparagraph,
the
erroneous
written
advice
shall
7
have
been
issued
by
the
department
prior
to
July
1,
1999,
and
8
shall
have
been
specially
directed
to
the
retailer
by
the
9
department.
10
(b)
If
an
abatement
of
unpaid
state
sales
and
use
taxes
and
11
any
local
sales
and
services
taxes
is
granted
to
the
retailer
12
by
the
director
pursuant
to
this
subparagraph,
the
department
13
is
precluded
from
collecting
from
the
purchaser
any
unpaid
14
state
sales
and
use
taxes
and
any
local
sales
and
services
15
taxes
which
were
abated.
16
Sec.
41.
Section
422.72,
subsection
6,
paragraph
a,
Code
17
2022,
is
amended
to
read
as
follows:
18
a.
The
department
may
enter
into
a
written
informational
19
exchange
agreement
for
tax
administration
purposes
with
a
city
20
or
county
which
is
entitled
to
receive
funds
due
to
a
local
21
hotel
and
motel
tax
or
a
local
sales
and
services
tax
.
The
22
written
informational
exchange
agreement
shall
designate
no
23
more
than
two
paid
city
or
county
employees
that
have
access
to
24
actual
return
information
relating
to
that
city’s
or
county’s
25
receipts
from
a
local
hotel
and
motel
tax
or
a
local
sales
and
26
services
tax
.
27
Sec.
42.
Section
423.4,
subsection
2,
paragraph
d,
Code
28
2022,
is
amended
by
striking
the
paragraph.
29
Sec.
43.
Section
423.4,
subsection
5,
paragraph
f,
Code
30
2022,
is
amended
to
read
as
follows:
31
f.
Notwithstanding
the
state
sales
tax
imposed
in
section
32
423.2
,
a
rebate
issued
pursuant
to
this
subsection
shall
not
33
exceed
an
amount
equal
to
five
percent
of
the
sales
price
34
of
the
tangible
personal
property
or
services
furnished
to
35
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purchasers
at
the
automobile
racetrack
facility.
Any
local
1
option
taxes
paid
and
collected
shall
not
be
subject
to
rebate
2
under
this
subsection
.
3
Sec.
44.
Section
423.4,
subsection
7,
paragraph
f,
Code
4
2022,
is
amended
to
read
as
follows:
5
f.
The
refund
in
this
subsection
applies
only
to
state
6
sales
and
use
tax
paid
and
does
not
apply
to
local
option
7
sales
and
services
taxes
imposed
pursuant
to
chapter
423B
.
8
Notwithstanding
the
state
sales
tax
imposed
in
section
423.2
,
9
a
refund
issued
pursuant
to
this
section
shall
not
exceed
10
an
amount
equal
to
five
percent
of
the
sales
price
of
the
11
fuel
used
to
create
heat,
power,
and
steam
for
processing
12
or
generating
electrical
current
or
from
the
sale
price
13
of
electricity
consumed
by
computers,
machinery,
or
other
14
equipment
for
operation
of
the
data
center
business
facility.
15
Sec.
45.
Section
423.4,
subsection
8,
paragraph
g,
Code
16
2022,
is
amended
to
read
as
follows:
17
g.
The
refund
in
this
subsection
applies
only
to
state
18
sales
and
use
tax
paid
and
does
not
apply
to
local
option
19
sales
and
services
taxes
imposed
pursuant
to
chapter
423B
.
20
Notwithstanding
the
state
sales
tax
imposed
in
section
423.2
,
21
a
refund
issued
pursuant
to
this
section
shall
not
exceed
an
22
amount
equal
to
five
percent
of
the
sales
price
of
the
items
23
listed
in
paragraph
“a”
,
subparagraphs
(1),
(2),
and
(3).
24
Sec.
46.
Section
423.14A,
subsection
2,
Code
2022,
is
25
amended
to
read
as
follows:
26
2.
In
addition
to
and
not
in
lieu
of
any
application
of
27
this
chapter
to
sellers
who
are
retailers
and
sellers
who
are
28
retailers
maintaining
a
place
of
business
in
this
state,
any
29
person
described
in
subsection
3
,
or
the
person’s
agents,
30
shall
be
considered
a
retailer
in
this
state
and
a
retailer
31
maintaining
a
place
of
business
in
this
state
for
purposes
of
32
this
chapter
on
or
after
January
1,
2019,
and
shall
be
subject
33
to
all
requirements
of
this
chapter
imposed
on
retailers
and
34
retailers
maintaining
a
place
of
business
in
this
state,
35
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including
but
not
limited
to
the
requirement
to
collect
and
1
remit
sales
and
use
taxes
pursuant
to
sections
423.14
and
2
423.29
,
and
local
option
taxes
under
chapter
423B
.
3
Sec.
47.
Section
423.33,
subsection
1,
paragraph
c,
Code
4
2022,
is
amended
to
read
as
follows:
5
c.
If
the
retailer
fails
to
collect
sales
tax
at
the
time
6
of
the
transaction,
the
retailer
shall
thereafter
remit
the
7
applicable
sales
tax,
or
the
purchaser
thereafter
shall
remit
8
the
applicable
use
tax.
If
the
purchaser
remits
all
applicable
9
use
tax,
the
retailer
remains
liable
for
any
local
sales
and
10
services
tax
under
chapter
423B
that
the
retailer
failed
to
11
collect.
12
Sec.
48.
Section
423.34A,
unnumbered
paragraph
1,
Code
13
2022,
is
amended
to
read
as
follows:
14
A
purchaser
is
relieved
of
liability
for
payment
of
state
15
sales
or
use
tax,
for
payment
of
any
local
option
sales
tax,
16
for
payment
of
interest,
or
for
payment
of
any
penalty
for
17
nonpayment
of
tax
which
nonpayment
is
not
fraudulent,
willful,
18
or
intentional,
under
the
following
circumstances:
19
Sec.
49.
Section
423.36,
subsection
9,
paragraph
a,
Code
20
2022,
is
amended
to
read
as
follows:
21
a.
Except
as
provided
in
paragraph
“b”
,
purchasers,
users,
22
and
consumers
of
tangible
personal
property,
specified
digital
23
products,
or
enumerated
services
taxed
pursuant
to
subchapter
24
II
or
III
of
this
chapter
or
chapter
423B
may
be
authorized,
25
pursuant
to
rules
adopted
by
the
director,
to
remit
tax
owed
26
directly
to
the
department
instead
of
the
tax
being
collected
27
and
paid
by
the
seller.
To
qualify
for
a
direct
pay
tax
permit,
28
the
purchaser,
user,
or
consumer
must
accrue
a
tax
liability
29
of
more
than
four
thousand
dollars
in
tax
under
subchapters
30
II
and
III
in
a
semimonthly
period
and
make
deposits
and
file
31
returns
pursuant
to
section
423.31
.
This
authority
shall
not
32
be
granted
or
exercised
except
upon
application
to
the
director
33
and
then
only
after
issuance
by
the
director
of
a
direct
pay
34
tax
permit.
35
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Sec.
50.
Section
423B.1,
Code
2022,
is
amended
by
striking
1
the
section
and
inserting
in
lieu
thereof
the
following:
2
423B.1
Use
of
revenues
deposited
in
the
local
sales
and
use
3
tax
fund
——
revenue
purpose
statement.
4
1.
a.
Revenues
credited
to
and
deposited
in
each
county’s
5
account
within
the
local
sales
and
use
tax
fund
shall
be
6
expended
by
each
recipient
county
and
city
as
required
by
the
7
revenue
purpose
statement,
subject
to
the
requirements
of
8
section
423B.7,
subsection
7,
and
approved
under
this
section
9
for
the
city
or
for
the
county
for
the
unincorporated
areas
of
10
the
county,
or
as
required
by
subsection
3.
11
b.
A
revenue
purpose
statement
for
the
use
of
local
option
12
sales
and
services
tax
revenue
under
this
chapter
approved
at
13
election
prior
to
January
1,
2023,
and
in
effect
on
or
set
14
to
take
effect
on
or
after
January
1,
2023,
and
the
use
of
15
revenues
received
under
this
chapter
for
purposes
authorized
16
under
section
423B.10
for
ordinances
in
effect
and
approved
17
before
January
1,
2023,
shall
continue
in
effect
for
revenues
18
received
under
this
chapter
until
the
expiration
of
the
revenue
19
purpose
statement
or
ordinance,
if
applicable,
or
until
the
20
county
board
of
supervisors
or
city
council,
as
applicable,
21
adopts
a
new
revenue
purpose
statement
under
subsection
2
or
22
repeals
or
amends
the
ordinance
for
the
use
of
revenues
under
23
section
423B.10.
24
2.
The
board
of
supervisors
of
each
county
and
the
city
25
council
of
each
city
may
adopt
by
resolution
a
revenue
purpose
26
statement
for
the
expenditure
of
funds
received
under
this
27
chapter.
28
3.
Each
city
and
county
without
a
valid
revenue
purpose
29
statement
shall
expend
the
revenues
received
for
the
following
30
purposes
in
the
order
prescribed
in
this
subsection,
except
31
that
the
payment
of
bonds
for
which
the
revenues
have
been
32
pledged
shall
be
paid
first:
33
a.
Reduction
of
the
county’s
basic
levies
under
section
34
331.423
or
reduction
of
the
city
general
fund
levy
under
35
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_____
section
384.1,
as
applicable.
1
b.
Reduction
of
any
debt
service
levy
of
the
county
or
city,
2
as
applicable.
3
c.
Reduction
of
the
city’s
additional
taxes
levied
under
4
section
384.12
or
the
county’s
supplemental
levies
under
5
section
331.424,
as
applicable.
6
d.
Reduction
of
any
other
property
tax
levy
of
the
county
7
or
city,
as
applicable.
8
Sec.
51.
NEW
SECTION
.
423B.1A
Local
use
tax
supplement
9
fund.
10
1.
A
local
use
tax
supplement
fund
is
created
in
the
state
11
treasury
under
the
control
of
the
department
of
revenue.
The
12
fund
shall
consist
of
all
moneys
transferred
under
section
13
423.43,
subsection
1,
paragraph
“b”
,
subparagraph
(1),
14
subparagraph
division
(a),
and
moneys
appropriated
to
the
fund.
15
2.
Moneys
in
the
local
use
tax
supplement
fund
are
annually
16
appropriated
to
the
department
of
revenue
and
shall
be
used
for
17
supplement
payments
to
cities
and
counties
under
this
section.
18
3.
For
each
year
during
the
period
beginning
January
1,
19
2023,
through
December
31,
2042,
each
city
or
county
for
the
20
unincorporated
portion
of
the
county,
shall
receive
a
local
21
use
tax
supplement
payment
equal
to
the
difference,
but
not
22
less
than
zero
between
the
amount
of
revenue
received
by
the
23
city
or
county
under
section
423B.7,
Code
2022,
for
the
period
24
beginning
January
1,
2022,
and
ending
December
31,
2022,
minus
25
the
amount
that
would
have
been
received
by
that
city
or
county
26
for
that
period
if
all
cities
and
the
county
were
eligible
for
27
distributions
of
such
revenues
under
section
423B.7,
Code
2022.
28
If
moneys
in
the
fund
are
insufficient
to
pay
all
supplement
29
amounts
for
the
year,
the
director
of
revenue
shall
prorate
the
30
payment
of
the
supplement
payments
and
shall
notify
the
cities
31
and
counties
of
the
pro
rata
percentage.
32
4.
The
supplement
payment
calculated
under
subsection
3
33
shall
be
paid
to
each
city
or
county
for
the
unincorporated
34
area
of
the
county
and
shall
be
combined
with
and
be
used
in
the
35
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_____
same
manner
and
be
subject
to
the
same
requirements
as
moneys
1
received
by
the
city
or
county
under
section
423B.7
for
that
2
year.
3
5.
Notwithstanding
section
12C.7,
subsection
2,
interest
or
4
earnings
on
moneys
deposited
in
the
local
use
tax
supplement
5
fund
shall
be
credited
to
the
local
use
tax
supplement
fund.
6
Notwithstanding
section
8.33,
moneys
credited
to
the
local
use
7
tax
supplement
fund
shall
not
revert
at
the
close
of
a
fiscal
8
year.
9
6.
This
section
is
repealed
January
1,
2043.
Moneys
in
the
10
fund
upon
the
repeal
of
this
section
shall
be
transferred
to
11
the
appropriate
county
accounts
under
section
423B.7
for
the
12
counties
from
which
the
tax
was
paid.
13
Sec.
52.
Section
423B.7,
subsection
1,
Code
2022,
is
amended
14
to
read
as
follows:
15
1.
a.
Except
as
provided
in
paragraphs
paragraph
“b”
and
16
“c”
,
the
director
shall
credit
the
local
sales
and
services
tax
17
receipts
and
interest
and
penalties
from
a
county-imposed
tax
18
as
specified
in
section
423.2A,
subsection
2,
paragraph
“a”
,
19
including
any
interest
and
penalties,
to
the
county’s
account
20
in
the
local
sales
and
services
use
tax
fund
for
the
county
in
21
from
which
the
tax
was
collected.
The
director
shall
credit
22
the
use
tax
receipts
as
specified
in
section
423.43,
subsection
23
1,
paragraph
“b”
,
subparagraph
(1),
subparagraph
divisions
(b)
24
and
(c),
including
any
interest
and
penalties,
to
the
county’s
25
account
in
the
local
sales
and
use
tax
fund
for
the
county
26
from
which
the
use
tax
was
paid.
If
the
director
is
unable
to
27
determine
from
which
county
any
of
the
receipts
were
collected
28
or
paid,
as
applicable
,
those
receipts
shall
be
allocated
among
29
the
possible
counties
based
on
allocation
rules
adopted
by
the
30
director.
31
b.
The
director
shall
credit
the
designated
amount
of
the
32
increase
in
local
sales
and
services
tax
receipts,
as
computed
33
in
section
423B.10
,
collected
in
an
urban
renewal
area
of
an
34
eligible
city
that
has
adopted
an
ordinance
pursuant
to
section
35
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423B.10,
subsection
2
,
into
a
special
city
account
in
the
local
1
sales
and
services
use
tax
fund.
2
c.
The
director
shall
credit
the
local
sales
and
services
3
tax
receipts
and
interest
and
penalties
from
a
city-imposed
tax
4
under
section
423B.1,
subsection
2
,
to
the
city’s
account
in
5
the
local
sales
and
services
tax
fund.
6
Sec.
53.
Section
423B.7,
subsection
2,
paragraph
a,
Code
7
2022,
is
amended
by
striking
the
paragraph
and
inserting
in
8
lieu
thereof
the
following:
9
a.
The
director
of
revenue
by
the
last
day
of
each
month
10
shall
transfer
to
each
city
or
county
the
amount
of
tax
11
receipts
remitted
to
the
department
attributable
to
each
city
12
or
county
from
the
preceding
month.
13
Sec.
54.
Section
423B.7,
subsections
3
and
4,
Code
2022,
are
14
amended
to
read
as
follows:
15
3.
Seventy-five
percent
of
each
county’s
account
shall
be
16
remitted
on
the
basis
of
the
county’s
population
residing
in
17
the
unincorporated
area
where
the
tax
was
imposed
and
those
the
18
incorporated
areas
where
the
tax
was
imposed
as
follows:
19
a.
To
the
board
of
supervisors
a
pro
rata
share
based
upon
20
the
percentage
of
the
above
population
of
the
county
residing
21
in
the
unincorporated
area
of
the
county
where
the
tax
was
22
imposed
according
to
the
most
recent
certified
federal
census.
23
b.
To
each
city
in
the
county
where
the
tax
was
imposed
24
a
pro
rata
share
based
upon
the
percentage
of
the
city’s
25
population
residing
in
the
county
to
the
above
population
of
26
the
county
according
to
the
most
recent
certified
federal
27
census.
28
c.
If
a
subsequent
certified
census
exists
which
modifies
29
that
most
recent
certified
federal
census
for
a
participating
30
jurisdiction
under
paragraphs
“a”
and
“b”
,
the
computations
31
under
paragraphs
“a”
and
“b”
shall
utilize
the
subsequent
32
certified
census
in
the
distribution
formula
under
rules
33
established
by
the
director
of
revenue.
34
4.
Twenty-five
percent
of
each
county’s
account
shall
35
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_____
be
remitted
based
on
the
sum
of
property
tax
dollars
levied
1
by
the
board
of
supervisors
if
the
tax
was
imposed
in
the
2
unincorporated
areas
and
by
each
city
in
the
county
where
the
3
tax
was
imposed
during
the
three-year
period
beginning
July
1,
4
1982,
and
ending
June
30,
1985,
as
follows:
5
a.
To
the
board
of
supervisors
a
pro
rata
share
based
upon
6
the
percentage
of
the
total
property
tax
dollars
levied
by
the
7
board
of
supervisors
during
the
above
three-year
period.
8
b.
To
each
city
council
where
the
tax
was
imposed
a
pro
rata
9
share
based
upon
the
percentage
of
property
tax
dollars
levied
10
by
the
city
during
the
above
three-year
period
of
the
above
11
total
property
tax
dollars
levied
by
the
board
of
supervisors
12
and
each
city
where
the
tax
was
imposed
during
the
above
13
three-year
period.
14
Sec.
55.
Section
423B.7,
subsection
5,
Code
2022,
is
amended
15
by
striking
the
subsection.
16
Sec.
56.
Section
423B.7,
subsections
6
and
7,
Code
2022,
are
17
amended
to
read
as
follows:
18
6.
From
each
special
city
account
under
subsection
1,
19
paragraph
“b”
,
the
sales
and
services
tax
revenues
shall
be
20
remitted
to
the
city
council
for
deposit
in
the
special
fund
21
created
in
section
403.19,
subsection
2
,
to
be
used
by
the
city
22
as
provided
in
section
423B.10
.
The
distribution
from
the
23
special
city
account
is
not
subject
to
the
distribution
formula
24
provided
in
subsections
3
,
and
4
,
and
5
.
25
7.
a.
Subject
to
the
requirement
of
paragraph
“b”
and
the
26
requirements
under
section
423B.1,
subsection
3
,
local
sales
27
and
services
tax
moneys
amounts
received
by
a
city
or
county
28
under
this
chapter
may
be
expended
for
any
lawful
purpose
of
29
the
city
or
county,
including
but
not
limited
to
expenses
30
related
to
providing
emergency
medical
services
within
the
31
applicable
city
or
county.
32
b.
Each
city
located
in
whole
or
in
part
in
a
qualified
33
county
and
each
qualified
county
for
the
unincorporated
area
34
for
which
the
imposition
of
the
local
sales
and
services
tax
35
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_____
in
the
city
or
portion
thereof
or
the
unincorporated
area,
as
1
applicable,
was
revenue
purpose
statement
approved
at
election
2
on
or
after
January
1,
2019
2023
,
shall
require
the
use
of
3
not
less
than
fifty
percent
of
the
moneys
received
from
the
4
qualified
county’s
account
in
the
local
sales
and
services
5
tax
fund
applicable
county
under
this
chapter
for
property
6
tax
relief.
However,
for
a
county
with
a
population
of
four
7
hundred
thousand
or
more,
a
revenue
purpose
statement
governing
8
the
use
of
revenues
for
the
unincorporated
area
of
the
county
9
approved
on
or
after
January
1,
2023,
shall
require
the
use
of
10
seventy-five
percent
of
the
moneys
received
by
the
county
under
11
this
chapter
for
property
tax
relief.
12
c.
For
purposes
of
this
subsection,
property
tax
relief
13
includes
payments
under
a
chapter
28E
agreement
for
purposes
of
14
a
regional
transit
district
if
such
payments
are
used
to
reduce
15
the
regional
transit
district
levy
under
section
28M.5.
For
a
16
city
located
in
whole
or
in
part
in
a
county
with
a
population
17
of
four
hundred
thousand
or
more,
the
use
of
revenues
received
18
under
this
chapter
for
the
purposes
of
this
paragraph
shall
19
not
exceed
ten
percent
of
the
amount
received
and
for
a
county
20
with
a
population
of
four
hundred
thousand
or
more,
for
the
21
unincorporated
area,
shall
not
exceed
twenty-five
percent
of
22
the
amount
received
under
this
chapter.
23
Sec.
57.
Section
423B.9,
subsection
1,
paragraphs
b
and
c,
24
Code
2022,
are
amended
to
read
as
follows:
25
b.
“Designated
portion”
means
the
portion
of
the
local
26
option
sales
and
services
tax
revenues
received
under
this
27
chapter
which
is
authorized
to
be
expended
for
one
or
a
28
combination
of
purposes
under
an
adopted
public
measure.
29
c.
“Secondary
recipient”
means
a
political
subdivision
of
30
the
state
which
is
to
receive
revenues
amounts
from
a
local
31
option
sales
and
services
tax
revenues
under
this
chapter
32
over
a
period
of
years
pursuant
to
the
terms
of
a
chapter
28E
33
agreement
with
one
or
more
cities
or
counties.
34
Sec.
58.
Section
423B.9,
subsections
2
and
3,
Code
2022,
are
35
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_____
amended
to
read
as
follows:
1
2.
An
issuer
of
public
bonds
which
is
a
recipient
of
2
revenues
from
a
local
option
sales
and
services
tax
imposed
3
pursuant
to
this
chapter
may
issue
bonds
in
anticipation
of
4
the
collection
of
one
or
more
designated
portions
of
the
5
local
option
sales
and
services
tax
such
revenues
and
may
6
pledge
irrevocably
an
amount
of
the
revenue
derived
from
the
7
designated
portions
for
each
of
the
years
the
bonds
remain
8
outstanding
to
the
payment
of
the
bonds.
Bonds
may
be
issued
9
only
for
one
or
more
of
the
purposes
set
forth
on
the
ballot
10
proposition
concerning
the
imposition
of
the
local
option
sales
11
and
services
tax
in
the
revenue
purpose
statement
,
except
bonds
12
shall
not
be
issued
which
are
payable
from
that
portion
of
tax
13
revenues
designated
for
property
tax
relief.
The
bonds
may
be
14
issued
in
accordance
with
the
procedures
set
forth
in
either
15
subsection
3
or
4
.
16
3.
The
governing
body
of
an
issuer
may
authorize
the
17
issuance
of
bonds
which
are
payable
from
the
designated
portion
18
of
the
revenues
of
the
local
option
sales
and
services
tax
19
received
under
this
chapter
,
and
not
from
property
tax,
by
20
following
the
authorization
procedures
set
forth
for
cities
21
in
section
384.83
.
Bonds
may
be
issued
for
the
purpose
of
22
refunding
outstanding
and
previously
issued
bonds
under
this
23
subsection
without
otherwise
complying
with
the
provisions
of
24
this
subsection
.
25
Sec.
59.
Section
423B.9,
subsection
4,
paragraph
b,
Code
26
2022,
is
amended
to
read
as
follows:
27
b.
The
provisions
of
chapter
76
apply
to
the
bonds
payable
28
as
provided
in
this
subsection
,
except
that
the
mandatory
levy
29
to
be
assessed
pursuant
to
section
76.2
shall
be
at
a
rate
30
to
generate
an
amount
which
together
with
the
receipts
from
31
the
pledged
designated
portion
of
the
local
option
sales
and
32
services
tax
revenues
received
under
this
chapter
is
sufficient
33
to
pay
the
interest
and
principal
on
the
bonds.
All
amounts
34
collected
as
a
result
of
the
levy
assessed
pursuant
to
section
35
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_____
76.2
and
paid
out
in
the
first
instance
for
bond
principal
1
and
interest
shall
be
repaid
to
the
bond
issuer
which
levied
2
the
tax
from
the
first
available
designated
portion
of
local
3
option
sales
and
services
tax
collections
revenues
received
4
under
this
chapter
in
excess
of
the
requirement
for
the
payment
5
of
the
principal
and
interest
of
the
bonds
and
when
repaid
6
shall
be
applied
in
reduction
of
property
taxes.
The
amount
7
of
bonds
which
may
be
issued
under
section
76.3
shall
be
the
8
amount
which
could
be
retired
from
the
actual
collections
of
9
the
designated
portions
of
the
local
option
sales
and
services
10
tax
revenues
received
under
this
chapter
for
the
last
four
11
calendar
quarters,
as
certified
by
the
director
of
revenue.
12
The
amount
of
tax
revenues
pledged
jointly
by
other
cities
or
13
counties
may
be
considered
for
the
purpose
of
determining
the
14
amount
of
bonds
which
may
be
issued.
If
the
local
option
sales
15
and
services
tax
has
been
in
effect
revenues
have
been
received
16
under
this
chapter
for
less
than
four
calendar
quarters,
the
17
tax
collected
revenues
received
within
the
shorter
period
may
18
be
adjusted
to
project
the
collections
amount
of
the
designated
19
portion
for
the
full
year
for
the
purpose
of
determining
the
20
amount
of
the
bonds
which
may
be
issued.
The
provisions
of
21
this
section
constitute
separate
authorization
for
the
issuance
22
of
bonds
and
shall
prevail
in
the
event
of
conflict
with
23
any
other
provision
of
the
Code
limiting
the
amount
of
bonds
24
which
may
be
issued
or
the
source
of
payment
of
the
bonds.
25
Bonds
issued
under
this
section
shall
not
limit
or
restrict
26
the
authority
of
the
bond
issuer
to
issue
bonds
under
other
27
provisions
of
the
Code.
28
Sec.
60.
Section
423B.9,
subsection
5,
Code
2022,
is
amended
29
to
read
as
follows:
30
5.
A
city
or
county,
jointly
with
one
or
more
other
31
political
subdivisions
as
provided
in
chapter
28E
,
may
pledge
32
irrevocably
any
amount
derived
from
the
designated
portions
33
of
the
revenues
of
the
local
option
sales
and
services
tax
34
received
under
this
chapter
to
the
support
or
payment
of
bonds
35
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_____
of
an
issuer,
issued
for
one
or
more
purposes
set
forth
on
1
the
ballot
proposition
concerning
the
imposition
of
the
local
2
option
sales
and
services
tax
in
the
revenue
purpose
statement
3
or
a
political
subdivision
may
apply
the
proceeds
of
its
bonds
4
to
the
support
of
any
such
purpose.
5
Sec.
61.
Section
423B.10,
subsection
1,
paragraph
b,
Code
6
2022,
is
amended
to
read
as
follows:
7
b.
“Eligible
city”
means
a
city
in
which
a
local
sales
and
8
services
tax
imposed
by
the
county
applies
or
a
city
described
9
in
section
423B.1,
subsection
2
,
paragraph
“a”
,
and
in
which
an
10
urban
renewal
area
has
been
designated.
11
Sec.
62.
Section
423B.10,
subsections
2,
3,
5,
and
6,
Code
12
2022,
are
amended
to
read
as
follows:
13
2.
a.
Upon
approval
by
the
board
of
supervisors
of
each
14
applicable
county
pursuant
to
paragraph
“b”
,
an
eligible
city
15
may
by
ordinance
of
the
city
council
provide
for
the
use
of
a
16
designated
amount
of
the
increased
local
sales
and
services
17
tax
revenues
collected
received
under
this
chapter
which
are
18
attributable
to
retail
establishments
in
an
urban
renewal
19
area
to
fund
urban
renewal
projects
located
in
the
area.
The
20
designated
amount
may
be
all
or
a
portion
of
such
increased
21
revenues.
22
b.
A
city
shall
not
adopt
an
ordinance
under
paragraph
23
“a”
unless
the
board
of
supervisors
of
each
county
where
the
24
urban
renewal
area
from
which
such
local
sales
and
services
25
tax
revenues
are
to
be
collected
and
used
to
fund
urban
26
renewal
projects
is
located
first
adopts
a
resolution
approving
27
the
collection
and
use
of
such
local
sales
and
services
tax
28
revenues.
29
3.
To
determine
the
revenue
increase
for
purposes
of
30
subsection
2
,
revenue
amounts
shall
be
calculated
by
the
31
department
of
revenue
as
follows:
32
a.
Determine
the
amount
of
local
sales
and
services
tax
33
revenue
collected
and
attributable
to
a
one
percent
sales
and
34
services
tax
from
retail
establishments
located
in
the
area
35
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_____
comprising
the
urban
renewal
area
during
the
base
year.
1
b.
Determine
the
current
year
one
percent
sales
and
services
2
tax
revenue
amount
for
each
fiscal
year
following
the
base
year
3
in
the
manner
specified
in
paragraph
“a”
.
4
c.
The
excess
of
the
amount
determined
in
paragraph
“b”
over
5
the
base
year
revenue
amount
determined
in
paragraph
“a”
is
the
6
increase
in
the
local
sales
and
services
tax
revenues
of
which
7
the
designated
amount
is
to
be
deposited
in
the
special
city
8
account
created
in
section
423B.7,
subsection
6
.
9
5.
In
addition
to
the
moneys
received
pursuant
to
the
10
ordinance
authorized
under
subsection
2
,
an
eligible
city
11
may
deposit
any
other
local
sales
and
services
tax
revenues
12
received
by
it
the
city
pursuant
to
the
distribution
formula
in
13
section
423B.7,
subsections
3,
4,
and
5
,
to
the
special
fund
14
described
in
section
403.19,
subsection
2
.
15
6.
For
purposes
of
this
section
,
the
eligible
city
shall
16
assist
the
department
of
revenue
in
identifying
retail
17
establishments
in
the
urban
renewal
area
that
are
collecting
18
the
local
sales
and
services
tax.
This
process
shall
be
19
ongoing
until
the
ordinance
is
repealed.
20
Sec.
63.
REPEAL.
2019
Iowa
Acts,
chapter
151,
section
21,
21
is
repealed.
22
Sec.
64.
REPEAL.
Sections
423B.2,
423B.3,
423B.4,
423B.5,
23
423B.6,
and
423B.8,
Code
2022,
are
repealed.
24
Sec.
65.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
25
effect
January
1,
2023.
26
DIVISION
VI
27
NATURAL
RESOURCES
AND
OUTDOOR
RECREATION
TRUST
FUND
28
Sec.
66.
Section
2.45,
Code
2022,
is
amended
by
adding
the
29
following
new
subsection:
30
NEW
SUBSECTION
.
5A.
a.
The
legislative
natural
resources
31
and
outdoor
recreation
trust
fund
review
committee
which
32
shall
be
composed
of
ten
members
of
the
general
assembly,
33
consisting
of
five
members
from
each
chamber,
to
be
appointed
34
by
the
legislative
council.
In
appointing
the
five
members
35
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51
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_____
of
each
chamber
to
the
committee,
the
council
shall
appoint
1
three
members
from
the
majority
party
and
two
members
from
the
2
minority
party.
3
b.
The
legislative
natural
resources
and
outdoor
recreation
4
trust
fund
review
committee
shall
have
the
powers
and
duties
5
described
in
section
2.49.
6
c.
This
subsection
is
repealed
December
31,
2051.
7
Sec.
67.
NEW
SECTION
.
2.49
Legislative
natural
resources
8
and
outdoor
recreation
trust
fund
review
committee.
9
1.
The
legislative
natural
resources
and
outdoor
recreation
10
trust
fund
review
committee
shall
meet
during
the
legislative
11
interim
in
calendar
years
2030,
2040,
and
2050.
The
committee
12
shall
consider
the
most
effective
ways
to
manage
trust
fund
13
moneys
to
further
the
purpose
of
Article
VII,
section
10,
of
14
the
Constitution
of
the
State
of
Iowa.
As
part
of
its
duties,
15
the
committee
may
consider
any
of
the
following:
16
a.
The
administration
of
the
trust
fund,
trust
accounts,
and
17
designated
funds
as
provided
in
chapter
461.
18
b.
The
effectiveness
of
initiatives
supported
by
trust
fund
19
moneys
as
provided
in
chapter
461.
20
2.
The
committee
shall
report
to
the
legislative
council
21
the
results
of
its
considerations,
which
may
include
22
recommendations
and
proposed
legislation
for
consideration
23
during
the
next
session
of
the
general
assembly.
24
3.
This
section
is
repealed
December
31,
2051.
25
Sec.
68.
Section
8.57,
subsection
5,
paragraph
f,
26
subparagraph
(1),
subparagraph
division
(c),
Code
2022,
is
27
amended
by
striking
the
subparagraph
division.
28
Sec.
69.
Section
8.57,
subsection
5,
paragraph
f,
29
subparagraph
(1),
subparagraph
division
(f),
Code
2022,
is
30
amended
to
read
as
follows:
31
(f)
For
the
fiscal
year
beginning
July
1,
2018,
and
for
32
each
fiscal
year
thereafter,
the
total
moneys
in
excess
of
the
33
moneys
deposited
under
this
paragraph
“f”
in
the
revenue
bonds
34
debt
service
fund,
the
revenue
bonds
federal
subsidy
holdback
35
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_____
fund,
the
vision
Iowa
fund,
the
water
quality
infrastructure
1
fund,
the
Iowa
skilled
worker
and
job
creation
fund,
and
the
2
general
fund
of
the
state
shall
be
deposited
in
the
rebuild
3
Iowa
infrastructure
fund
and
shall
be
used
as
provided
in
this
4
section
,
notwithstanding
section
8.60
.
5
Sec.
70.
Section
8.57B,
subsection
1,
Code
2022,
is
amended
6
to
read
as
follows:
7
1.
a.
A
water
quality
infrastructure
fund
is
created
within
8
the
division
of
soil
conservation
and
water
quality
of
the
9
department
of
agriculture
and
land
stewardship.
10
b.
The
fund
shall
consist
of
moneys
deposited
in
the
11
fund
pursuant
to
section
8.57,
subsection
5
,
paragraph
“f”
,
12
subparagraph
(1),
subparagraph
division
(c),
moneys
all
of
the
13
following:
14
(1)
(a)
Moneys
transferred
to
the
fund
pursuant
to
section
15
423G.6
,
and
461.33.
16
(b)
This
subparagraph
(1)
is
repealed
December
31,
2051.
17
(2)
Moneys
transferred
or
appropriations
made
to
the
fund
18
and
transfers
of
interest,
earnings,
and
moneys
from
other
19
funds
as
provided
by
law.
20
Sec.
71.
Section
16.134A,
subsection
2,
paragraph
a,
21
subparagraphs
(1)
and
(2),
Code
2022,
are
amended
to
read
as
22
follows:
23
(1)
Moneys
transferred
to
the
fund
pursuant
to
section
24
423G.6
461.34
.
25
(2)
This
paragraph
“a”
is
repealed
on
January
1,
2040
26
December
31,
2051
.
27
Sec.
72.
Section
455A.17,
Code
2022,
is
amended
by
striking
28
the
section
and
inserting
in
lieu
thereof
the
following:
29
455A.17
Regional
meetings.
30
1.
Beginning
in
calendar
year
2023,
and
every
four
31
calendar
years
thereafter,
the
department
shall
arrange
32
and
conduct
regional
meetings
to
identify
opportunities
for
33
regional
resource
enhancement
and
protection,
and
to
review
34
and
recommend
changes
in
resource
enhancement
and
protection
35
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policies,
programs,
and
funding.
The
department
shall
provide
1
outreach
and
educational
services
to
those
attending,
which
2
shall
include
the
distribution
of
information
regarding
3
resource
enhancement
and
protection
expenditures.
The
4
department
shall
promote
attendance
of
interested
persons
for
5
each
regional
meeting.
6
2.
The
expenses
of
the
department
in
making
the
arrangements
7
for
and
conducting
regional
meetings
and
providing
outreach
and
8
educational
services
shall
be
paid
from
moneys
credited
to
the
9
administration
fund
created
in
section
456A.17.
10
Sec.
73.
Section
455A.18,
subsection
1,
Code
2022,
is
11
amended
to
read
as
follows:
12
1.
a.
An
Iowa
resources
enhancement
and
protection
fund
is
13
created
in
the
office
of
the
treasurer
of
state.
14
b.
The
fund
consists
of
all
revenues
of
the
following:
15
(1)
(a)
Moneys
allocated
from
the
natural
resources
and
16
outdoor
recreation
trust
fund
as
provided
in
section
461.35.
17
(b)
This
subparagraph
(1)
is
repealed
December
31,
2051.
18
(2)
Revenues
and
all
other
moneys
lawfully
credited
or
19
transferred
to
the
fund.
The
director
shall
certify
monthly
20
the
portions
of
the
fund
that
are
allocated
to
the
various
21
accounts
as
provided
under
section
455A.19
.
The
director
shall
22
certify
before
the
twentieth
of
each
month
the
portions
of
23
the
fund
resulting
from
the
previous
month’s
receipts
to
be
24
allocated
to
the
various
accounts.
25
Sec.
74.
Section
455A.18,
subsection
3,
paragraph
a,
Code
26
2022,
is
amended
by
striking
the
paragraph.
27
Sec.
75.
Section
455A.18,
subsection
3,
paragraph
b,
Code
28
2022,
is
amended
to
read
as
follows:
29
b.
Section
8.33
does
not
apply
to
moneys
appropriated
under
30
this
subsection
credited
to
the
fund
.
31
Sec.
76.
Section
461.2,
Code
2022,
is
amended
to
read
as
32
follows:
33
461.2
Definitions.
34
As
used
in
this
chapter
,
unless
the
context
otherwise
35
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_____
requires:
1
1.
“Authority”
means
the
economic
development
authority
2
created
in
section
15.105.
3
2.
“Department”
“Custodial
department”
means
the
department
4
of
agriculture
and
land
stewardship,
the
department
of
5
management,
the
department
of
natural
resources,
or
the
6
department
of
transportation.
7
3.
“Designated
fund”
means
the
water
quality
infrastructure
8
fund
created
in
section
8.57B,
the
water
quality
financial
9
assistance
fund
created
in
section
16.134A,
or
the
Iowa
10
resources
enhancement
and
protection
fund
created
in
section
11
455A.18.
12
2.
4.
“Fiscal
year”
means
the
state
fiscal
year
effective
13
as
provided
in
section
3.12
.
14
3.
5.
“Initiative”
includes
a
program,
project,
practice,
15
strategy,
or
plan
established
or
administered
by
an
agency
that
16
furthers
,
or
under
the
supervision
or
oversight
of,
a
custodial
17
department
or
the
Iowa
finance
authority,
if
the
initiative
is
18
supported
in
whole
or
in
part
by
trust
fund
moneys
to
further
a
19
constitutional
purpose
as
provided
in
section
461.3
.
20
6.
“Iowa
nutrient
reduction
strategy”
means
the
same
as
21
defined
in
section
455B.171.
22
7.
“Nonpoint
source”
means
a
source
of
pollution
other
than
23
a
point
source.
24
8.
“Point
source”
means
the
same
as
defined
in
section
25
455B.171.
26
9.
“Public
use
area”
means
a
park,
preserve,
recreation
27
area,
forest,
water
body,
or
a
land
or
water
trail
owned
or
28
managed
by
the
state
or
a
political
subdivision
of
the
state.
29
4.
10.
“Recreational
purpose”
includes
means
only
hunting
,
;
30
trapping
,
;
angling
,
;
horseback
riding
,
;
swimming
,
;
boating
,
;
31
camping
,
;
picnicking
,
;
hiking
,
;
biking;
recreational
shooting;
32
archery;
using
land
or
water
trails;
bird
watching
,
;
nature
33
study
,
;
water
skiing
,
;
snowmobiling
;
,
other
summer
and
winter
34
sports,
and
viewing
or
enjoying
historical,
archaeological,
35
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scenic,
or
scientific
sites.
1
11.
“Trust
account”
means
the
natural
resources
trust
2
account
created
in
section
461.32,
the
soil
conservation
and
3
nonpoint
source
water
protection
trust
account
created
in
4
section
461.33,
the
watershed
protection
trust
account
created
5
in
section
461.34,
the
local
conservation
partnership
trust
6
account
created
in
section
461.36,
the
water
and
land
trails
7
trust
account
created
in
section
461.37,
or
the
lake
and
stream
8
restoration
trust
account
created
in
section
461.38.
9
5.
12.
“Trust
fund”
means
the
natural
resources
and
outdoor
10
recreation
trust
fund
created
in
section
461.31
.
11
6.
13.
“Trust
fund
moneys”
means
moneys
originating
from
12
credited
to
the
natural
resources
and
outdoor
recreation
trust
13
fund
or
moneys
allocated
from
the
trust
fund,
including
but
not
14
limited
to
moneys
allocated
to
a
trust
account
or
allocated
or
15
transferred
to
a
designated
fund
.
16
14.
“Water
trail”
means
a
point-to-point
travel
system
on
a
17
navigable
water
body
capable
of
supporting
a
floating
vessel
18
capable
of
carrying
one
or
more
persons
on
a
recommended
route
19
connecting
the
points.
20
Sec.
77.
Section
461.3,
Code
2022,
is
amended
to
read
as
21
follows:
22
461.3
Constitutional
purpose
,
and
implementation
,
and
23
revenue
.
24
1.
This
chapter
is
created
for
the
constitutional
purposes
25
of
protecting
and
enhancing
water
quality
and
natural
areas
26
in
this
state,
including
parks,
trails,
and
fish
and
wildlife
27
habitat,
and
conserving
agricultural
soils
in
this
state.
28
2.
This
chapter
is
intended
to
implement
Article
VII,
29
section
10,
of
the
Constitution
of
the
State
of
Iowa
by
30
establishing
the
natural
resources
and
outdoor
recreation
31
trust
fund,
accounts
in
the
including
trust
fund
accounts
,
32
and
appropriating
or
allocating
trust
fund
moneys
to
support
33
initiatives
specified
in
subchapter
IV
.
This
chapter
shall
not
34
be
construed
to
require
the
state
to
appropriate,
allocate,
35
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_____
or
transfer
other
moneys
to
support
those
initiatives
or
1
constitutional
purposes.
2
Sec.
78.
Section
461.11,
subsection
2,
Code
2022,
is
amended
3
to
read
as
follows:
4
2.
The
heads
of
each
department
receiving
trust
fund
moneys
5
the
custodial
departments
and
the
director
of
the
authority
6
shall
regularly
meet
and
whenever
practicable
collaborate
in
7
decision
making
including
by
adopting
rules
providing
for
8
the
administration
of
the
trust
fund
and
trust
accounts
,
9
establishing
funding
priorities,
and
determining
when
it
is
10
beneficial
to
provide
joint
funding
of
initiatives.
11
Sec.
79.
NEW
SECTION
.
461.20
Information
regarding
trust
12
fund
moneys.
13
1.
Each
year
the
department
of
revenue
shall
calculate
14
an
estimate
of
the
total
revenue
to
be
transferred
to
the
15
trust
fund
during
the
following
fiscal
year
as
required
16
pursuant
to
section
423.2A.
Not
later
than
May
1
of
each
17
year,
the
department
of
revenue
shall
submit
the
estimate
to
18
each
custodial
department,
the
authority,
and
the
legislative
19
services
agency.
20
2.
A
custodial
department
shall
at
least
annually
notify
the
21
legislative
services
agency
of
transfers
of
trust
fund
moneys
22
from
a
trust
account
to
another
trust
account
or
designated
23
fund
as
authorized
in
this
chapter.
24
Sec.
80.
Section
461.21,
Code
2022,
is
amended
to
read
as
25
follows:
26
461.21
Audit.
27
1.
The
auditor
of
state
or
a
certified
public
accounting
28
firm
appointed
by
the
auditor
of
state
shall
conduct
an
annual
29
audit
of
the
trust
fund
and
all
trust
accounts
and
transactions
30
of
the
trust
fund
and
trust
accounts
in
the
same
manner
as
31
provided
for
departments
pursuant
to
chapter
11,
subchapter
I
.
32
2.
The
auditor
of
state
or
the
certified
public
accounting
33
firm
appointed
by
the
auditor
as
provided
in
subsection
1
34
shall
be
paid
from
trust
fund
moneys
without
reducing
the
35
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percentage
of
trust
fund
moneys
distributed
allocated
to
the
1
Iowa
resources
enhancement
and
protection
fund
or
any
one
a
2
trust
account
established
or
designated
fund
pursuant
to
this
3
chapter
subchapter
IV
.
4
Sec.
81.
Section
461.22,
Code
2022,
is
amended
to
read
as
5
follows:
6
461.22
Report
Trust
fund
report
.
7
The
three
departments
department
of
management
shall
jointly
8
prepare
and
submit
to
the
governor
and
the
general
assembly
not
9
later
than
January
15
of
each
year
a
complete
trust
fund
report
10
in
an
electronic
format
detailing
all
of
the
following:
11
1.
The
receipts
and
expenditures
of
the
trust
fund
and
its
12
trust
accounts,
a
summary
of
initiatives
supported
by
trust
13
fund
moneys,
the
results
of
those
expenditures,
any
performance
14
goals
or
measurements,
and
plans
for
future
short-term
or
15
long-term
expenditures.
16
2.
Recommendations
An
evaluation
of
the
use
of
trust
fund
17
moneys
to
further
progress
in
achieving
the
goals
of
the
Iowa
18
nutrient
reduction
strategy
as
prepared
by
the
department
of
19
agriculture
and
land
stewardship,
the
department
of
natural
20
resources,
and
the
college
of
agriculture
and
life
sciences
21
of
the
Iowa
state
university
of
science
and
technology.
The
22
evaluation
shall
be
based
on
the
latest
credible
findings
and
23
recommendations
recognized
by
those
entities.
The
evaluation
24
may
include
recommendations
to
the
governor
and
general
25
assembly,
including
legislation
proposed
by
one
or
more
of
the
26
departments
entities
.
27
Sec.
82.
Section
461.23,
Code
2022,
is
amended
to
read
as
28
follows:
29
461.23
Rules.
30
The
department
of
revenue,
the
department
of
agriculture
and
31
land
stewardship,
the
department
of
management,
the
department
32
of
natural
resources,
and
the
department
of
transportation
,
the
33
Iowa
finance
authority,
and
the
economic
development
authority
34
shall
adopt
rules
separately
or
jointly
as
necessary
in
order
35
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_____
to
implement
and
administer
this
chapter
.
1
Sec.
83.
Section
461.24,
Code
2022,
is
amended
by
striking
2
the
section
and
inserting
in
lieu
thereof
the
following:
3
461.24
Public
listing.
4
The
department
of
management
shall
publish
and
maintain
a
5
public
listing
of
moneys
credited
to
and
allocated
from
the
6
trust
fund,
trust
fund
moneys
allocated
or
transferred
from
7
trust
accounts,
and
trust
fund
moneys
allocated
or
transferred
8
to
designated
funds
to
support
initiatives.
This
section
does
9
not
require
the
disclosure
of
information
that
is
confidential
10
as
provided
by
rules
adopted
pursuant
to
section
461.23.
11
Sec.
84.
NEW
SECTION
.
461.25
Use
of
trust
fund
moneys.
12
1.
A
custodial
department
shall
not
appropriate,
allocate,
13
or
transfer
trust
fund
moneys
except
as
provided
in
this
14
chapter.
However,
this
subsection
shall
not
be
construed
to
15
limit
a
custodial
department
from
using
trust
fund
moneys
with
16
another
person,
including
a
custodial
department,
when
engaging
17
in
a
joint
initiative
as
authorized
by
law.
18
2.
During
any
fiscal
year,
a
custodial
department
shall
not
19
use
more
than
five
percent
of
trust
fund
moneys
allocated
to
20
a
trust
account
to
pay
for
expenses
incurred
in
administering
21
trust
fund
moneys
allocated
to
that
trust
account.
22
3.
In
administering
the
use
of
trust
fund
moneys
allocated
23
to
a
trust
account,
a
custodial
department
shall
provide
a
24
higher
priority
to
supporting
initiatives
that
further
goals
of
25
the
Iowa
nutrient
reduction
strategy.
26
4.
A
custodial
department
shall
administer
the
use
of
27
trust
fund
moneys
to
support
an
initiative
having
primarily
28
a
recreational
purpose
only
if
such
use
is
in
cooperation
29
with
the
authority.
The
authority
shall
review,
score,
and
30
rank
applications
to
support
such
initiatives
as
part
of
a
31
competitive
evaluation
process.
The
scoring
criteria
must
32
further
the
economic
development
policy
of
the
state
as
33
provided
in
chapter
15.
34
5.
When
making
a
determination
to
support
competing
35
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proposed
initiatives
relating
to
a
public
use
area
that
1
benefits
a
locality,
a
custodial
department
or
the
authority
2
shall
provide
a
higher
priority
to
supporting
an
initiative
to
3
improve
an
existing
public
use
area.
4
6.
When
making
a
determination
to
support
a
proposed
5
initiative
to
establish,
improve,
or
expand
a
land
trail,
6
the
proposal
shall
not
be
approved
unless
the
sponsor
of
the
7
proposal
demonstrates
to
the
custodial
department
or
other
8
entity
making
the
funding
decision
how
the
trail
is
to
be
9
maintained
by
other
sources
of
revenue.
10
7.
In
administering
the
use
of
trust
fund
moneys
allocated
11
to
a
trust
account
to
support
an
initiative
relating
to
12
the
management
of
land,
this
chapter
does
not
do
any
of
the
13
following:
14
a.
Prohibit
the
farming
of
the
land
in
a
manner
that
is
15
consistent
with
the
Iowa
nutrient
reduction
strategy.
16
b.
Require
a
separation
distance
between
an
animal
feeding
17
operation
and
a
public
use
area
that
is
more
restrictive
than
18
if
the
land
were
not
managed
pursuant
to
the
initiative.
19
8.
Trust
fund
moneys
shall
not
be
used
to
support
any
of
the
20
following:
21
a.
An
initiative
that
establishes,
improves,
or
expands
a
22
single
or
multipurpose
athletic
field,
baseball
or
softball
23
diamond,
tennis
court,
golf
course,
swimming
pool,
or
other
24
group
or
organized
sport
facility.
25
b.
The
taking
of
property
by
exercising
the
power
of
eminent
26
domain,
including
by
acquiring
property
as
provided
in
chapters
27
6A
and
6B.
28
Sec.
85.
Section
461.31,
Code
2022,
is
amended
to
read
as
29
follows:
30
461.31
Natural
resources
and
outdoor
recreation
trust
fund
31
——
creation.
32
1.
A
natural
resources
and
outdoor
recreation
trust
fund
33
is
created
within
the
state
treasury.
The
trust
fund
shall
be
34
administered
by
the
department
of
management.
35
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2.
a.
The
trust
fund
shall
be
composed
comprised
of
moneys
1
all
of
the
following:
2
(1)
Moneys
transferred
to
the
trust
fund
pursuant
to
section
3
423.2A.
4
(2)
Other
moneys
required
to
be
credited
to
the
trust
5
fund
by
law
and
moneys
accepted
by
a
custodial
department
for
6
placement
in
an
account
established
in
this
subchapter
and
the
7
trust
fund
from
any
source.
8
b.
Trust
fund
moneys
are
exclusively
appropriated
by
law
9
to
carry
out
the
constitutional
purposes
provided
described
in
10
section
461.3
.
11
c.
Trust
fund
moneys
shall
supplement
and
not
replace
12
moneys
appropriated
by
the
general
assembly
to
support
the
13
constitutional
purposes
provided
in
section
461.3
.
14
d.
Trust
fund
moneys
shall
only
be
used
to
support
voluntary
15
initiatives
and
shall
not
be
used
for
regulatory
efforts,
16
enforcement
actions,
or
litigation.
17
3.
In
administering
a
trust
fund
account,
a
custodial
18
department
may
contract,
sue
and
be
sued,
and
authorize
payment
19
for
costs,
fees,
commissions,
and
other
reasonable
expenses
20
from
the
trust
account.
However,
a
custodial
department
shall
21
not
in
any
manner
directly
or
indirectly
pledge
the
credit
of
22
this
state.
23
4.
a.
Except
as
provided
in
paragraph
“b”
,
the
treasurer
24
of
state
shall,
each
month
as
directed
by
the
department
of
25
management,
allocate
all
trust
fund
moneys
that
have
been
26
credited
to
the
trust
fund,
including
moneys
transferred
to
the
27
trust
fund
as
provided
in
section
423.2A,
to
each
trust
account
28
and
designated
fund
as
provided
in
this
subchapter.
29
b.
Notwithstanding
sections
461.32
through
461.38,
for
the
30
fiscal
year
beginning
July
1,
2023,
and
for
each
subsequent
31
fiscal
year,
only
that
amount
as
authorized
by
an
Act
of
32
the
general
assembly
shall
be
allocated
from
the
trust
fund
33
to
a
trust
account
or
designated
fund
as
provided
in
this
34
subchapter.
However,
if
for
a
fiscal
year
no
Act
of
the
35
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general
assembly
authorizes
trust
fund
moneys
to
be
allocated
1
from
the
trust
fund,
the
trust
fund
moneys
shall
be
allocated
2
from
the
trust
fund
to
the
trust
accounts
and
designated
funds
3
as
provided
in
this
subchapter
by
operation
of
law.
4
5.
a.
Notwithstanding
section
8.33
,
any
unexpended
balance
5
in
the
trust
fund
or
in
an
a
trust
account
created
within
the
6
trust
fund
at
the
end
of
each
fiscal
year
shall
be
retained
in
7
the
trust
fund
or
the
respective
trust
account.
8
b.
Notwithstanding
section
12C.7,
subsection
2
,
interest
or
9
earnings
on
investments
or
time
deposits
of
the
moneys
in
the
10
trust
fund
and
its
respective
trust
accounts
shall
be
credited
11
to
the
trust
fund
and
its
respective
trust
accounts.
12
c.
The
recapture
of
awards
originating
from
an
a
trust
13
account
and
other
repayments
to
an
a
trust
account
shall
be
14
retained
in
that
trust
account.
15
Sec.
86.
Section
461.32,
Code
2022,
is
amended
to
read
as
16
follows:
17
461.32
Natural
resources
trust
account
——
allocations.
18
1.
A
natural
resources
trust
account
is
created
in
the
trust
19
fund.
Twenty-three
The
trust
account
shall
be
administered
by
20
the
department
of
natural
resources.
21
2.
Eighteen
percent
of
the
moneys
credited
to
the
trust
fund
22
shall
be
allocated
to
the
trust
account.
23
2.
3.
The
trust
account
shall
be
used
by
the
department
of
24
natural
resources
to
support
all
of
the
following
initiatives:
25
a.
The
establishment,
restoration,
or
enhancement
of
state
26
parks,
state
preserves,
state
forests,
wildlife
areas,
wildlife
27
habitats,
native
prairies,
and
wetlands.
28
(1)
A
higher
priority
shall
be
provided
to
supporting
29
initiatives
for
the
maintenance,
preservation,
or
restoration
30
of
land
and
a
lower
priority
shall
be
provided
to
supporting
31
initiatives
for
the
purchase
or
acquisition
of
land.
32
(2)
The
department
shall
utilize
an
index
that
includes
a
33
comprehensive
assessment
mechanism
to
produce
a
statistically
34
verifiable
basis
for
determining
whether
to
approve
or
35
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disapprove
the
purchase
or
acquisition
of
the
land.
The
1
department
shall
establish
index
criteria
that
justifies
the
2
land’s
removal
from
private
ownership
and
use.
3
b.
The
construction
or
improvement
of
facilities
located
on
4
land
owned
or
managed
by
the
department.
5
b.
c.
Wildlife
diversity.
6
c.
d.
Recreational
purposes.
7
d.
e.
Technical
assistance
and
financial
incentives
8
provided
to
private
landowners
to
promote
the
management
of
9
forests,
fisheries,
recreational
areas,
wetlands,
and
wildlife.
10
e.
f.
The
improvement
of
water
trails,
rivers
,
and
streams.
11
f.
g.
Education
and
outreach
that
provide
instruction
12
regarding
natural
history
and
the
outdoors.
The
subjects
13
of
such
instruction
may
relate
to
opportunities
involving
a
14
recreational
purposes
purpose
,
outdoor
safety,
and
or
ethics.
15
3.
The
department
of
natural
resources
shall
to
every
extent
16
possible
consider
its
comprehensive
plan
provided
in
section
17
456A.31
when
making
funding
decisions.
18
Sec.
87.
Section
461.33,
Code
2022,
is
amended
to
read
as
19
follows:
20
461.33
Soil
conservation
and
nonpoint
source
water
protection
21
trust
account
——
allocations.
22
1.
A
soil
conservation
and
nonpoint
source
water
protection
23
trust
account
is
created
in
the
trust
fund.
Twenty
The
trust
24
account
shall
be
administered
by
the
department
of
agriculture
25
and
land
stewardship.
26
2.
Thirty-four
percent
of
the
moneys
credited
to
the
trust
27
fund
shall
be
allocated
to
the
trust
account.
28
3.
Forty-seven
percent
of
trust
fund
moneys
allocated
to
29
the
trust
account
shall
first
be
transferred
as
directed
by
the
30
department
to
any
or
all
of
the
following:
31
a.
The
water
quality
infrastructure
fund
created
in
section
32
8.57B
to
support
water
quality
agriculture
infrastructure
33
programs
created
in
section
466B.43
in
order
to
reduce
nutrient
34
loads
from
nonpoint
sources.
35
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b.
The
water
quality
financial
assistance
fund
created
1
in
section
16.134A
to
support
the
water
quality
urban
2
infrastructure
program
created
in
section
466B.44.
3
2.
4.
a.
The
account
shall
be
used
by
the
department
of
4
agriculture
and
land
stewardship
remaining
trust
fund
moneys
5
allocated
to
the
trust
account
shall
be
used
by
the
department
6
to
support
all
of
the
following
initiatives:
7
a.
(1)
Soil
conservation
and
watershed
protection,
8
including
by
supporting
the
department’s
division
of
9
soil
conservation
and
water
quality
within
the
department
10
of
agriculture
and
land
stewardship
and
soil
and
water
11
conservation
district
commissioners.
The
department
and
12
commissioners
may
provide
for
the
installation
establishment
of
13
conservation
practices
and
watershed
protection
improvements
as
14
provided
in
chapters
161A
,
161C
,
461A
,
and
466
,
and
466B
.
15
b.
(2)
The
conservation
of
highly
erodible
land.
The
16
department
of
agriculture
and
land
stewardship
may
execute
17
contracts
with
private
landowners
who
agree
to
reserve
such
18
land
only
for
uses
that
prevent
erosion
in
excess
of
the
19
applicable
soil
loss
limits
as
established
in
section
161A.44
.
20
c.
(3)
Soil
conservation
or
crop
management
practices
21
used
on
land
producing
biomass
for
biorefineries,
including
22
cellulosic
ethanol
production.
23
3.
b.
The
department
of
agriculture
and
land
stewardship
24
may
use
unencumbered
or
unobligated
trust
fund
moneys
allocated
25
to
the
trust
account
to
provide
financial
incentives
or
26
technical
assistance
to
landowners.
27
5.
During
a
fiscal
year,
the
department
may
transfer
28
unencumbered
or
unobligated
trust
fund
moneys
allocated
to
29
the
trust
account
for
use
by
the
department
as
is
provided
in
30
subsection
4
to
any
of
the
following:
31
a.
The
water
quality
infrastructure
fund
created
in
section
32
8.57B
to
support
water
quality
agriculture
infrastructure
33
programs
created
in
section
466B.43
in
order
to
reduce
nutrient
34
loads
from
nonpoint
sources.
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b.
The
water
quality
financial
assistance
fund
created
1
in
section
16.134A
to
support
the
water
quality
urban
2
infrastructure
program
created
in
section
466B.44.
3
Sec.
88.
Section
461.34,
Code
2022,
is
amended
to
read
as
4
follows:
5
461.34
Watershed
protection
trust
account
——
allocations.
6
1.
A
watershed
protection
trust
account
is
created
in
the
7
trust
fund.
Fourteen
The
trust
account
shall
be
administered
8
by
the
department
of
natural
resources.
9
2.
Fifteen
percent
of
the
moneys
credited
to
the
trust
fund
10
shall
be
allocated
to
the
trust
account.
11
3.
Forty-seven
percent
of
trust
fund
moneys
allocated
12
to
the
trust
account
shall
first
be
transferred
to
the
water
13
quality
financial
assistance
fund
created
in
section
16.134A
14
for
appropriation
as
provided
in
that
section.
15
2.
4.
The
account
Of
the
remaining
trust
fund
moneys
16
allocated
to
the
trust
account,
fifty
percent
shall
be
used
17
cooperatively
distributed
for
use
by
the
department
of
18
natural
resources
and
the
department
of
agriculture
and
land
19
stewardship
to
support
all
of
the
following
initiatives:
20
a.
Water
water
quality
resource
projects
administered
by
21
the
department
of
natural
resources
to
preserve
watersheds,
22
including
but
not
limited
to
all
of
the
following:
23
(1)
a.
Projects
to
protect,
restore,
or
enhance
water
24
quality
in
the
state
through
the
provision
of
financial
25
assistance
to
communities
for
impairment-based,
locally
26
directed
watershed
projects.
The
department
may
use
the
27
account
trust
fund
moneys
to
support
the
water
resource
28
restoration
sponsor
program
as
provided
in
section
455B.199
.
29
(2)
b.
Regional
and
community
watershed
assessment,
30
planning,
and
prioritization
efforts,
including
as
provided
in
31
chapter
466B
.
32
c.
Water
quality
protection
programs
provided
in
section
33
466.7
that
relate
to
any
of
the
following:
34
(1)
The
administration
of
geographic
information
systems
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for
use
in
developing,
monitoring,
and
displaying
local
1
watershed
information.
2
(2)
An
activity
to
support
the
collection
and
analysis
of
3
water
quality
monitoring.
4
(3)
Floodplain
permitting.
5
(4)
Flood
protection
education
to
provide
information
to
6
local
officials
regarding
floodplain
management.
7
b.
5.
Surface
Of
the
remaining
trust
fund
moneys
allocated
8
to
the
trust
account,
fifty
percent
shall
be
distributed
for
9
use
by
the
department
of
agriculture
and
land
stewardship
10
to
support
surface
water
protection
projects
and
practices
11
administered
by
the
department
of
agriculture
and
land
12
stewardship
or
the
department
of
natural
resources,
as
13
described
in
the
Iowa
nutrient
reduction
strategy
including
but
14
not
limited
to
the
installation
of
permanent
vegetation
cover,
15
filter
strips,
grass
waterways,
edge-of-field
practices,
and
16
riparian
forest
buffers;
dredging;
and
bank
stabilization.
The
17
departments
of
agriculture
and
land
stewardship
and
natural
18
resources
department
may
use
the
account
trust
fund
moneys
19
to
support
the
conservation
buffer
strip
program
provided
in
20
section
466.4
and
the
conservation
reserve
enhancement
program
21
as
provided
in
section
466.5
.
22
3.
6.
The
departments’
A
decision
by
a
department
to
23
prioritize
initiatives
may
be
based
on
the
priority
list
of
24
watersheds
provided
in
section
456A.33A
.
25
7.
During
a
fiscal
year,
the
department
of
natural
26
resources
or
the
department
of
agriculture
and
land
stewardship
27
may
transfer
unencumbered
or
unobligated
trust
fund
moneys
28
distributed
to
the
custodial
department
pursuant
to
subsection
29
4
or
5
to
the
water
quality
financial
assistance
fund
created
30
in
section
16.134A.
31
Sec.
89.
Section
461.35,
Code
2022,
is
amended
to
read
as
32
follows:
33
461.35
Iowa
resources
enhancement
and
protection
fund
——
34
allocation.
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Thirteen
Ten
percent
of
the
moneys
credited
to
the
trust
1
fund
shall
be
allocated
to
the
Iowa
resources
enhancement
2
and
protection
fund
created
in
section
455A.18
for
further
3
allocation
as
provided
in
section
455A.19
.
4
Sec.
90.
Section
461.36,
Code
2022,
is
amended
by
striking
5
the
section
and
inserting
in
lieu
thereof
the
following:
6
461.36
Local
conservation
partnership
trust
account
——
7
allocations.
8
1.
A
local
conservation
partnership
trust
account
is
9
created
in
the
trust
fund.
The
trust
account
shall
be
10
administered
by
the
department
of
natural
resources.
11
2.
Nine
percent
of
the
moneys
credited
to
the
trust
fund
12
shall
be
allocated
to
the
trust
account.
13
3.
The
department
shall
allocate
the
trust
fund
moneys
14
credited
to
the
account
to
local
communities
participating
15
in
the
local
conservation
partnership
program
as
provided
in
16
section
461.36A.
17
Sec.
91.
NEW
SECTION
.
461.36A
Local
conservation
18
partnership
program.
19
1.
As
used
in
this
section,
unless
the
context
otherwise
20
requires:
21
a.
“Department”
means
the
department
of
natural
resources.
22
b.
“Local
community”
includes
a
political
subdivision
or
23
a
watershed
management
authority
created
pursuant
to
section
24
466B.22.
25
2.
The
department
shall
establish
and
administer
a
local
26
conservation
partnership
program
to
provide
financing
to
local
27
communities
to
do
any
of
the
following:
28
a.
Maintain
and
improve
parks,
preserves,
wildlife
areas,
29
wildlife
habitats,
native
prairies,
forests,
or
wetlands.
30
b.
Promote
wildlife
diversity.
31
c.
Further
a
recreational
purpose.
32
d.
Improve
rivers
and
streams.
33
e.
Sponsor
education
and
outreach
programs
and
projects
that
34
provide
instruction
regarding
natural
history
and
the
outdoors.
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The
subjects
of
such
instruction
may
relate
to
opportunities
1
involving
a
recreational
purpose,
outdoor
safety,
or
ethics.
2
The
programs
and
projects
may
assist
Iowa
students
studying
in
3
fields
of
science,
technology,
engineering,
and
mathematics.
4
f.
Further
any
other
purpose
described
in
section
350.1.
5
3.
As
part
of
a
local
conservation
partnership
under
the
6
program,
two
or
more
local
communities
may
enter
into
chapter
7
28E
agreements,
and
a
local
community
may
cooperate
with
8
the
federal
government
or
a
nongovernmental
organization.
9
A
nongovernmental
organization
shall
not
be
eligible
to
10
participate
in
a
local
community
partnership
under
the
program
11
unless
the
nongovernmental
organization
submits
an
application
12
in
association
with
a
political
subdivision
or
county
13
conservation
board
and
enters
into
a
chapter
28E
agreement
with
14
the
political
subdivision
or
county
conservation
board.
15
4.
a.
A
local
community
is
not
eligible
to
receive
moneys
16
from
the
department
under
the
program
to
support
a
local
17
conservation
partnership,
unless
the
local
community
finances
18
a
minimum
percentage
of
the
estimated
or
total
cost
of
the
19
initiative,
whichever
is
less.
20
b.
The
minimum
amount
of
the
cost-share
contribution
by
a
21
local
community,
as
described
in
paragraph
“a”
,
shall
be
as
22
follows:
23
(1)
Ten
percent
for
a
local
community
located
in
a
county
24
having
a
population
of
fifteen
thousand
or
less.
25
(2)
Twenty-five
percent
for
a
local
community
located
in
a
26
county
having
a
population
of
more
than
fifteen
thousand
but
27
less
than
one
hundred
thousand.
28
(3)
Seventy-five
percent
for
a
local
community
located
in
a
29
county
having
a
population
of
one
hundred
thousand
or
more.
30
Sec.
92.
Section
461.37,
Code
2022,
is
amended
to
read
as
31
follows:
32
461.37
Trails
Water
and
land
trails
trust
account
——
33
allocations.
34
1.
A
water
and
land
trails
trust
account
is
created
in
the
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trust
fund.
Ten
The
trust
account
shall
be
administered
by
the
1
department
of
transportation.
2
2.
Four
percent
of
the
moneys
credited
to
the
trust
fund
3
shall
be
allocated
to
the
trust
account.
4
2.
3.
The
Of
the
amount
of
trust
fund
moneys
allocated
5
to
the
trust
account,
fifty
percent
shall
be
distributed
for
6
use
by
the
department
of
transportation
and
the
department
of
7
natural
resources
shall
use
moneys
in
the
account
to
support
8
initiatives
related
to
the
design,
establishment,
maintenance,
9
improvement,
and
expansion
of
land
trails.
10
3.
4.
The
Of
the
amount
of
trust
fund
moneys
allocated
to
11
the
trust
account,
fifty
percent
shall
be
distributed
for
use
12
by
the
department
of
natural
resources
may
use
the
account
to
13
support
the
design,
establishment,
maintenance,
improvement,
14
and
expansion
of
water
trails.
The
department
shall
provide
15
priority
to
stream
restoration.
16
5.
a.
During
a
fiscal
year,
and
pursuant
to
an
agreement
17
between
the
department
of
transportation
and
the
department
18
of
natural
resources,
either
custodial
department
that
is
19
distributed
trust
fund
moneys
for
use
under
this
section
may
20
transfer
unencumbered
or
unobligated
trust
fund
moneys
to
the
21
other
custodial
department
for
use
by
the
other
custodial
22
department
as
provided
in
this
section.
23
b.
During
a
fiscal
year,
and
pursuant
to
an
agreement
24
between
the
department
of
transportation
and
the
department
25
of
natural
resources,
the
department
of
transportation
26
may
transfer
unencumbered
or
unobligated
trust
fund
moneys
27
allocated
to
the
trust
account
and
distributed
for
use
by
28
the
department
of
transportation
to
another
trust
account
29
administered
by
the
department
of
natural
resources
for
use
by
30
the
department
of
natural
resources.
31
Sec.
93.
Section
461.38,
Code
2022,
is
amended
to
read
as
32
follows:
33
461.38
Lake
and
stream
restoration
trust
account
——
34
allocations.
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1.
A
lake
and
stream
restoration
trust
account
is
created
in
1
the
trust
fund.
Seven
The
trust
account
shall
be
administered
2
by
the
department
of
natural
resources.
3
2.
Ten
percent
of
the
moneys
credited
to
the
trust
fund
4
shall
be
allocated
to
the
trust
account.
5
2.
3.
The
department
of
natural
resources
shall
use
moneys
6
in
allocated
to
the
trust
account
to
support
public
all
of
the
7
following:
8
a.
Public
lake
restoration
initiatives
as
follows:
9
a.
(1)
An
initiative
shall
account
for
a
lake’s
10
recreational
purpose
,
and
provide
for
environmental,
aesthetic,
11
ecological,
and
social
value.
It
must
improve
water
quality
12
further
a
goal
of
the
Iowa
nutrient
reduction
strategy
.
13
b.
(2)
The
department’s
A
decision
by
the
department
to
14
prioritize
an
initiative
may
be
based
on
the
department’s
lake
15
restoration
plan
and
report
as
provided
in
section
456A.33B
and
16
the
Iowa
nutrient
reduction
strategy
.
17
b.
The
stabilization
and
restoration
of
stream
banks.
18
Sec.
94.
NEW
SECTION
.
461.51
Repeal.
19
This
chapter
is
repealed
December
31,
2051.
20
Sec.
95.
CODE
EDITOR
DIRECTIVE.
21
1.
The
Code
editor
is
directed
to
make
the
following
22
transfers:
23
a.
Section
461.36A,
as
enacted
in
this
division
of
this
Act,
24
to
section
455A.31.
25
b.
Section
461.35,
as
amended
in
this
division
of
this
Act,
26
to
section
461.41.
27
2.
The
Code
editor
shall
correct
internal
references
in
the
28
Code
and
in
any
enacted
legislation
as
necessary
due
to
the
29
enactment
of
this
section.
30
Sec.
96.
REPEAL.
Section
455A.20,
Code
2022,
is
repealed.
31
Sec.
97.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
32
effect
January
1,
2023.
33
EXPLANATION
34
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
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the
explanation’s
substance
by
the
members
of
the
general
assembly.
1
This
bill
relates
to
state
and
local
revenue
and
finances
2
and
modifies
sales
and
use
taxes,
the
charitable
conservation
3
contribution
tax
credit
available
against
individual
and
4
corporate
income
taxes,
the
automobile
rental
excise
tax,
the
5
water
service
tax,
the
local
option
tax,
and
credits
moneys
to
6
the
natural
resource
and
outdoor
recreation
trust
fund.
7
DIVISION
I
——
SALES
AND
USE
TAX.
An
amendment
to
the
Iowa
8
Constitution
was
ratified
on
November
2,
2010,
which
created
9
a
natural
resources
and
outdoor
recreation
trust
fund
(fund)
10
and
dedicated
a
portion
of
state
revenues
to
the
fund
for
11
the
purposes
of
protecting
and
enhancing
water
quality
and
12
natural
areas
in
the
state
including
parks,
trails,
and
fish
13
and
wildlife
habitat,
and
conserving
agricultural
soils
in
14
the
state
(Article
VII,
section
10).
The
fund
is
codified
in
15
Code
section
461.31.
Pursuant
to
the
amendment,
the
amount
16
credited
to
the
fund
will
be
equal
to
the
amount
generated
17
by
an
increase
in
the
state
sales
tax
rate
occurring
after
18
the
effective
date
of
the
constitutional
amendment,
but
shall
19
not
exceed
the
amount
that
a
state
sales
tax
rate
of
0.375
20
percent
would
generate.
The
state
sales
tax
rate
has
not
21
been
increased
since
the
effective
date
of
the
constitutional
22
amendment,
so
no
amounts
have
been
credited
to
the
fund.
The
23
bill
increases
the
sales
tax
rate
and
the
use
tax
rate
from
6
24
percent
to
7
percent
beginning
January
1,
2023.
In
lieu
of
the
25
local
option
and
sales
services
tax
revenue
repealed
in
another
26
division
of
the
bill,
the
bill
transfers
a
specified
amount
of
27
the
state
sales
and
use
tax
revenues
collected
to
the
local
28
sales
and
use
tax
fund
established
under
Code
chapter
423B,
29
for
allocation
and
expenditure
in
a
manner
similar
to
that
30
which
was
provided
for
local
sales
and
services
tax
revenues.
31
However,
as
provided
in
another
division
of
the
bill,
amounts
32
resulting
from
the
increase
in
the
use
tax
for
the
period
33
beginning
January
1,
2023,
through
December
31,
2042,
are
34
deposited
in
the
local
use
tax
supplement
fund
to
be
used
for
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purposes
of
that
fund.
The
bill,
as
the
result
of
Article
VII,
1
section
10,
of
the
Constitution
of
the
State
of
Iowa,
also
2
amends
the
transfer
of
sales
tax
revenues
to
the
secure
an
3
advanced
vision
for
education
fund
in
Code
section
423.2A(2).
4
DIVISION
II
——
AUTOMOBILE
RENTAL
EXCISE
TAX.
The
bill
5
increases
the
automobile
rental
excise
tax
from
5
percent
to
7
6
percent
on
the
rental
of
automobiles
rented
on
or
after
January
7
1,
2023.
8
DIVISION
III
——
WATER
SERVICE
TAX.
The
bill
raises
the
9
water
service
tax
on
the
furnishing
of
water
to
consumers
from
10
6
percent
to
7
percent.
11
Currently,
one-half
of
the
moneys
collected
from
the
water
12
service
tax
are
deposited
into
the
general
fund
of
the
state
13
and
one-half
of
the
moneys
are
deposited
into
the
water
quality
14
financial
assistance
fund
created
in
Code
section
16.134A.
15
The
bill
strikes
the
provision
requiring
one-half
of
the
16
water
service
tax
moneys
be
deposited
into
the
water
quality
17
financial
assistance
fund
and
requires
all
moneys
generated
18
from
the
water
service
tax
be
deposited
into
the
general
fund
19
of
the
state.
20
The
bill
also
strikes
the
future
repeal
of
the
water
service
21
excise
tax.
22
The
division
takes
effect
January
1,
2023.
23
DIVISION
IV
——
CHARITABLE
CONSERVATION
CONTRIBUTION
24
TAX
CREDIT.
The
bill
prohibits
a
charitable
conservation
25
contribution
tax
credit
from
being
claimed
against
the
26
individual
or
corporate
income
tax,
except
for
qualified
real
27
property
interests
conveyed
prior
to
January
1,
2023.
The
bill
28
allows
the
credit
in
excess
of
tax
liability
to
carry
forward
29
for
qualified
real
property
interests
conveyed
prior
to
January
30
1,
2023.
The
bill
preserves
existing
rights
and
is
intended
to
31
not
limit,
modify,
or
otherwise
adversely
affect
any
amount
of
32
the
tax
credit
issued,
awarded,
or
allowed
prior
to
the
repeal
33
date
of
any
tax
credit.
The
division
takes
effect
January
1,
34
2023,
and
applies
to
tax
years
beginning
on
or
after
that
date.
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DIVISION
V
——
LOCAL
OPTION
TAXES.
Code
chapter
423B
1
authorizes,
following
approval
at
election,
the
imposition
of
2
a
local
option
sales
and
services
tax
at
a
rate
not
to
exceed
3
one
percent
to
be
administered
similarly
to
the
state
sales
4
and
services
tax
and
authorizes
the
imposition
of
a
local
5
vehicle
tax.
The
bill
strikes
the
authorization
for
the
local
6
vehicle
tax
and
also
strikes
the
authorization
to
impose
the
7
local
option
sales
and
services
tax
under
Code
chapter
423B,
8
but
instead
authorizes
cities
and
counties
to
expend
specified
9
state
sales
and
use
tax
revenues
that
are
deposited
in
the
10
local
sales
and
use
tax
fund
following
the
increase
of
the
11
state
sales
and
use
taxes
rates
in
previous
sections
of
the
12
bill.
13
Under
the
bill,
sales
and
services
tax
revenue
credited
to
14
and
deposited
in
each
county’s
account
within
the
local
sales
15
and
use
tax
fund
must
be
expended
by
each
recipient
county
16
and
city
as
required
by
the
jurisdiction’s
revenue
purpose
17
statement,
including
a
revenue
purpose
statement
approved
at
18
election
prior
to
January
1,
2023,
and
in
effect
on
or
set
to
19
take
effect
on
or
after
January
1,
2023,
for
the
use
of
local
20
option
sales
and
use
tax
revenue
previously
collected
under
21
Code
chapter
423B,
or
be
used
to
reduce
specified
property
tax
22
levies.
23
The
bill
also
modifies
the
requirements
and
permissible
uses
24
of
funds
received
under
Code
chapter
423B.
The
bill
specifies
25
that
for
a
county
with
a
population
of
400,000
or
more,
a
26
revenue
purpose
statement
governing
the
use
of
revenues
for
the
27
unincorporated
area
of
the
county
approved
on
or
after
January
28
1,
2023,
shall
require
the
use
of
75
percent
of
such
moneys
29
for
property
tax
relief.
Additionally,
the
bill
provides
that
30
property
tax
relief
includes
payments
under
a
Code
chapter
31
28E
agreement
for
purposes
of
a
regional
transit
district
if
32
such
payments
are
used
to
reduce
the
regional
transit
district
33
levy.
For
a
city
located
in
whole
or
in
part
in
a
county
with
34
a
population
of
400,000
or
more,
the
use
of
revenues
received
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under
Code
chapter
423B
for
such
regional
transit
district
1
purposes
shall
not
exceed
10
percent
of
the
amount
received
2
and
for
a
county
with
a
population
of
400,000
or
more,
for
the
3
unincorporated
area,
shall
not
exceed
25
percent.
4
The
board
of
supervisors
of
each
county
and
the
city
5
council
of
each
city
may
adopt
by
resolution
a
revenue
purpose
6
statement
for
the
expenditure
of
funds
received
under
Code
7
chapter
423B.
8
The
revenues
transferred
to
the
local
sales
and
use
tax
fund
9
continue
to
be
allocated
to
the
specific
county
account
for
10
the
county
in
which
the
tax
was
collected.
Additionally,
all
11
cities
and
counties
are
eligible
to
receive
the
allocation
of
12
revenues,
not
just
those
that
had
previously
approved
the
local
13
option
tax.
14
As
provided
in
another
division
of
the
bill,
specified
15
amounts
of
use
tax
revenue
is
transferred
to
the
local
use
16
tax
supplement
fund,
as
created
in
the
bill.
Moneys
in
the
17
local
use
tax
supplement
fund
are
annually
appropriated
to
the
18
department
of
revenue
to
be
used
for
supplement
payments
to
19
cities
and
counties.
For
each
year
during
the
period
beginning
20
January
1,
2023,
through
December
31,
2042,
each
city
or
county
21
for
the
unincorporated
portion
of
the
county
shall
receive
a
22
local
use
tax
supplement
payment
equal
to
the
difference,
but
23
not
less
than
zero,
between
the
amount
of
revenue
received
24
by
the
city
or
county
under
Code
section
423B.7,
Code
2022,
25
for
the
period
beginning
January
1,
2022,
and
ending
December
26
31,
2022,
minus
the
amount
that
would
have
been
received
by
27
that
city
or
county
for
that
period
if
all
cities
and
the
28
county
were
eligible
for
distributions
of
such
revenues
under
29
Code
section
423B.7,
Code
2022.
If
moneys
in
the
fund
are
30
insufficient
to
pay
all
supplement
amounts
for
the
year,
the
31
director
of
revenue
shall
prorate
the
payment
of
the
supplement
32
payments.
The
supplement
payment
is
required
to
be
combined
33
with
and
be
used
in
the
same
manner
and
be
subject
to
the
same
34
requirements
as
moneys
received
by
the
city
or
county
under
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Code
section
423B.7
for
that
year.
The
bill
establishes
a
1
future
repeal
of
the
Code
section
establishing
the
supplement
2
payments
on
January
1,
2043.
Moneys
in
the
fund
upon
the
3
repeal
shall
be
transferred
to
the
appropriate
county
accounts
4
for
the
counties
from
which
the
tax
was
paid.
5
Code
section
423B.10
allows
a
city
in
which
a
local
sales
6
and
services
tax
is
imposed
to,
by
ordinance
and
following
7
approval
of
the
board
of
supervisors,
to
provide
for
the
use
8
of
a
designated
amount
of
increased
local
option
sales
and
9
services
tax
revenue
for
urban
renewal
purposes.
The
bill
10
modifies
provisions
governing
this
authorization
to
provide
for
11
the
use
of
a
specified
amount
of
the
applicable
increased
state
12
sales
tax
revenues
deposited
in
the
local
sales
and
use
tax
13
fund
in
lieu
of
the
increased
local
option
sales
and
services
14
tax
revenue.
The
bill
allows
city
ordinances
providing
for
the
15
use
of
certain
local
option
sales
and
services
tax
revenues
for
16
urban
renewal
purposes
in
effect
on
January
1,
2023,
to
remain
17
in
effect
until
expiration,
amendment,
or
repeal.
18
The
bill
also
eliminates
the
authority
to
impose
a
local
19
sales
and
services
tax
under
the
quad
cities
interstate
20
metropolitan
authority
compact
under
Code
chapter
28A
beginning
21
on
January
1,
2023.
22
The
division
takes
effect
January
1,
2023.
23
DIVISION
VI
——
NATURAL
RESOURCES
AND
OUTDOOR
RECREATION
24
TRUST
FUND.
The
bill
amends
provisions
in
Code
chapter
461
25
(the
natural
resources
and
outdoor
recreation
Act)
that
is
26
to
implement
Article
VII,
section
10,
of
the
Constitution
27
of
the
State
of
Iowa
when
the
sales
tax
is
increased.
The
28
bill
increases
the
sales
tax
in
division
I.
The
Code
chapter
29
establishes
the
natural
resources
and
outdoor
recreation
trust
30
fund
(trust
fund)
and
associated
accounts
(renamed
trust
31
accounts)
supported
by
a
portion
of
state
revenue
generated
32
by
an
increase
in
the
state’s
sales
tax.
The
purpose
of
33
the
constitutional
provision
is
to
protect
and
enhance
water
34
quality
and
natural
areas,
including
parks,
trails,
and
fish
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and
wildlife
habitat,
and
conserve
agricultural
soils
in
this
1
state.
2
ALLOCATIONS
OF
TRUST
FUND
MONEYS.
The
bill
alters
the
3
percentage
of
moneys
to
be
allocated
from
the
trust
fund
4
(trust
fund
moneys)
to
its
trust
accounts,
including
the
5
natural
resources
trust
account
administered
by
the
department
6
of
natural
resources
(DNR),
the
soil
conservation
and
water
7
protection
trust
account
(renamed
the
soil
conservation
and
8
nonpoint
source
water
protection
trust
account)
administered
9
by
the
department
of
agriculture
and
land
stewardship
(DALS),
10
the
watershed
protection
trust
account
administered
by
DNR
11
in
cooperation
with
DALS,
the
local
conservation
partnership
12
trust
account
administered
by
DNR,
the
trails
trust
account
13
(renamed
the
water
and
land
trails
trust
account)
administered
14
by
DOT
in
cooperation
with
DNR,
and
the
lake
restoration
15
trust
account
(renamed
the
lake
and
stream
restoration
trust
16
account)
administered
by
DNR.
It
also
reduces
the
allocations
17
of
trust
fund
moneys
to
the
Iowa
resources
enhancement
and
18
protection
(REAP)
fund
administered
by
DNR.
It
transfers
19
trust
fund
moneys
allocated
to
the
renamed
soil
conservation
20
and
nonpoint
source
water
protection
trust
account
and
the
21
watershed
protection
trust
account
to
the
water
quality
22
infrastructure
fund
used
to
support
nonpoint
water
quality
23
programs
administered
by
DALS;
and
to
the
water
quality
24
financial
assistance
fund
administered
by
the
Iowa
finance
25
authority
(IFA)
to
support
the
wastewater
and
drinking
water
26
treatment
financial
assistance
program
(administered
by
IFA),
27
the
water
quality
financing
program
(administered
by
IFA),
and
28
the
water
quality
urban
infrastructure
program
(administered
by
29
DALS).
The
bill
revises
provisions
in
the
local
conservation
30
partnership
trust
account
as
a
program
to
be
administered
31
by
DNR.
The
bill
provides
that
trust
fund
moneys
may
be
32
transferred
from
the
renamed
soil
conservation
and
nonpoint
33
source
water
protection
trust
account
to
the
water
quality
34
infrastructure
fund
and
from
the
watershed
protection
trust
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account
to
the
water
quality
financial
assistance
fund
upon
1
direction
by
the
custodial
department.
The
bill
eliminates
2
current
funding
sources,
including
the
annual
appropriation
3
to
the
REAP
fund
from
the
general
fund
which
is
due
to
expire
4
on
June
30,
2026,
and
both
a
tax
on
the
sales
price
on
water
5
service,
which
another
division
of
the
bill
repeals,
and
the
6
use
of
wagering
tax
receipts,
which
would
otherwise
expire
on
7
July
1,
2039.
8
ADMINISTRATION.
The
bill
provides
that
the
legislative
9
council
is
to
appoint
a
committee
to
review
the
trust
fund
and
10
its
allocations.
The
bill
requires
the
economic
development
11
authority
to
be
involved
in
decisions
that
use
trust
fund
12
moneys
to
support
initiatives
with
a
recreational
purpose.
In
13
making
decisions
to
expend
trust
fund
moneys,
a
higher
priority
14
is
given
to
supporting
an
initiative
that
furthers
a
goal
of
15
the
Iowa
nutrient
reduction
strategy.
A
higher
priority
is
16
provided
to
maintaining
or
preserving
existing
public
use
lands
17
rather
than
acquiring
new
land.
Several
provisions
place
18
restrictions
upon
the
use
of
trust
fund
moneys
for
support
19
relating
to
certain
initiatives,
including
athletic
fields
or
20
facilities.
Trust
fund
moneys
cannot
be
used
to
support
an
21
exercise
of
eminent
domain
powers.
22
REPEAL.
Code
chapter
461
is
repealed
December
31,
2051.
23
EFFECTIVE
DATE.
The
division
of
the
bill
takes
effect
24
January
1,
2023.
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