Bill Text: IA SSB3162 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A study bill for an act relating to the rebate of sales tax imposed and collected at an automobile racetrack facility and including effective date and retroactive applicability provisions.
Spectrum: Unknown
Status: (N/A - Dead) 2014-02-11 - In Ways and Means [SSB3162 Detail]
Download: Iowa-2013-SSB3162-Introduced.html
Senate
Study
Bill
3162
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
BOLKCOM)
A
BILL
FOR
An
Act
relating
to
the
rebate
of
sales
tax
imposed
and
1
collected
at
an
automobile
racetrack
facility
and
including
2
effective
date
and
retroactive
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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5535XC
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85
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S.F.
_____
Section
1.
Section
423.4,
subsection
5,
paragraph
a,
1
subparagraphs
(2),
(3),
and
(4),
Code
2014,
are
amended
to
read
2
as
follows:
3
(2)
“Change
of
control”
means
any
of
the
following:
4
(a)
Any
any
change
in
the
ownership
of
the
original
or
any
5
subsequent
legal
entity
that
is
the
owner
or
operator
of
the
6
automobile
racetrack
facility
such
that
less
than
twenty-five
7
percent
of
the
equity
interests
in
the
legal
entity
is
owned
8
by
individuals
who
are
residents
of
Iowa,
an
Iowa
corporation
9
business
,
or
combination
of
both.
10
(b)
The
original
owners
of
the
legal
entity
that
is
the
11
owner
or
operator
of
the
automobile
racetrack
facility
shall
12
collectively
cease
to
own
at
least
twenty-five
percent
of
the
13
voting
equity
interests
of
such
legal
entity.
14
(3)
“Iowa
corporation
business
”
means
a
corporation
or
15
limited
liability
company
incorporated
or
formed
under
the
laws
16
of
Iowa
where
at
least
twenty-five
percent
of
the
corporation’s
17
equity
interests
are
owned
by
individuals
who
are
residents
of
18
Iowa
.
19
(4)
“Owner
or
operator”
means
a
for-profit
legal
entity
20
where
at
least
twenty-five
percent
of
its
equity
interests
21
are
owned
by
individuals
who
are
residents
of
Iowa,
an
Iowa
22
corporation
business
,
or
combination
of
both
and
that
is
the
23
owner
or
operator
of
an
automobile
racetrack
facility
and
is
24
primarily
a
promoter
of
motor
vehicle
races.
25
Sec.
2.
Section
423.4,
subsection
5,
paragraph
c,
26
subparagraph
(3),
Code
2014,
is
amended
to
read
as
follows:
27
(3)
The
transactions
for
which
sales
tax
was
collected
and
28
the
rebate
is
sought
occurred
on
or
after
January
1,
2006,
but
29
before
January
1,
2016
2026
.
However,
not
more
than
twelve
30
million
five
hundred
thousand
dollars
in
total
rebates
shall
be
31
provided
pursuant
to
this
subsection
.
32
Sec.
3.
Section
423.4,
subsection
5,
paragraph
g,
Code
2014,
33
is
amended
to
read
as
follows:
34
g.
This
subsection
is
repealed
June
30,
2016
2026
,
or
thirty
35
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_____
days
following
the
date
on
which
twelve
million
five
hundred
1
thousand
dollars
in
total
rebates
have
been
provided,
or
thirty
2
days
following
the
date
on
which
rebates
cease
as
provided
in
3
paragraph
“c”
,
subparagraph
(4),
whichever
is
the
earliest.
4
Sec.
4.
EFFECTIVE
UPON
ENACTMENT.
This
Act,
being
deemed
of
5
immediate
importance,
takes
effect
upon
enactment.
6
Sec.
5.
RETROACTIVE
APPLICABILITY.
This
Act
applies
7
retroactively
to
November
1,
2013.
8
EXPLANATION
9
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
10
the
explanation’s
substance
by
the
members
of
the
general
assembly.
11
This
bill
relates
to
the
rebate
of
sales
tax
imposed
12
and
collected
at
certain
automobile
racetrack
facilities
13
(facility).
14
Under
current
law,
the
owner
or
operator
of
a
facility
may
15
receive
a
rebate
of
the
sales
tax
imposed
and
collected
by
16
retailers
at
the
facility.
The
rebate
is
limited
to
sales
17
occurring
before
January
1,
2016,
and
is
limited
to
a
total
of
18
$12.5
million.
The
rebate
ceases
if
a
“change
in
control”,
as
19
defined
in
statute,
occurs.
A
change
in
control
occurs
when
20
the
original
owners
cease
to
own
at
least
25
percent
of
the
21
voting
equity
interests
in
the
legal
entity
that
is
the
owner
22
or
operator
of
the
facility
or
when
less
than
25
percent
of
23
the
equity
interests
in
the
legal
entity
that
is
the
owner
24
or
operator
of
the
facility
are
owned
by
individuals
who
are
25
residents
of
Iowa
or
an
Iowa
corporation
or
a
combination
26
of
both.
“Iowa
corporation”
is
defined
in
statute
as
a
27
corporation
incorporated
under
the
laws
of
Iowa
where
at
least
28
25
percent
of
the
corporation’s
equity
interests
are
owned
by
29
individuals
who
are
residents
of
Iowa.
30
The
bill
extends
the
rebate
by
10
years
to
sales
occurring
31
before
January
1,
2026,
and
extends
the
repeal
date
of
the
32
rebate
to
the
same
date.
The
bill
changes
the
definition
33
of
“change
in
control”
by
removing
the
requirement
that
the
34
original
owners
retain
at
least
25
percent
of
the
voting
equity
35
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interests
in
the
legal
entity
that
is
the
owner
or
operator
of
1
the
facility.
The
bill
also
changes
the
definition
of
“Iowa
2
corporation”
by
renaming
it
as
“Iowa
business”,
allowing
a
3
limited
liability
company
formed
under
the
laws
of
Iowa
to
4
qualify,
and
removing
the
requirement
that
at
least
25
percent
5
of
the
corporation’s
or
limited
liability
company’s
equity
6
interests
be
owned
by
individuals
who
are
residents
of
Iowa.
7
The
bill
takes
effect
upon
enactment
and
applies
8
retroactively
to
November
1,
2013.
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