Bill Text: IA SSB3203 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A study bill for an act relating to the policy administration of the tax and related laws by the department of revenue, including the administrative appeals process for certain tax matters and a related study and report, the individual and corporate income tax and the franchise tax, and the sales and use taxes, and including effective date and applicability provisions.
Spectrum: Unknown
Status: (N/A - Dead) 2014-03-10 - In Ways and Means [SSB3203 Detail]
Download: Iowa-2013-SSB3203-Introduced.html
Senate
Study
Bill
3203
-
Introduced
SENATE/HOUSE
FILE
_____
BY
(PROPOSED
DEPARTMENT
OF
REVENUE
BILL)
A
BILL
FOR
An
Act
relating
to
the
policy
administration
of
the
tax
and
1
related
laws
by
the
department
of
revenue,
including
the
2
administrative
appeals
process
for
certain
tax
matters
and
3
a
related
study
and
report,
the
individual
and
corporate
4
income
tax
and
the
franchise
tax,
and
the
sales
and
use
5
taxes,
and
including
effective
date
and
applicability
6
provisions.
7
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
8
TLSB
5312XD
(12)
85
mm/sc
S.F.
_____
H.F.
_____
DIVISION
I
1
STATE
BOARD
OF
TAX
REVIEW
2
Section
1.
Section
421.1,
subsection
5,
paragraph
a,
Code
3
2014,
is
amended
to
read
as
follows:
4
a.
Upon
its
own
motion
or
upon
appeal
by
any
affected
5
taxpayer,
the
state
board
shall
review
the
record
evidence
6
and
the
decisions
of,
and
any
orders
or
directive
issued
by,
7
the
director
of
revenue
under
Title
X,
subtitle
2,
for
the
8
identification
of
taxable
property,
classification
of
property
9
as
real
or
personal,
or
for
assessment
and
collection
valuation
10
of
taxes
property
by
the
department
under
Title
X,
subtitle
11
2,
or
an
order
to
reassess
or
to
raise
assessments
to
any
12
local
assessor
under
Title
X,
subtitle
2
,
and
shall
affirm,
13
modify,
reverse,
or
remand
them
within
sixty
days
from
the
14
date
the
case
is
submitted
to
the
board
for
decision.
For
an
15
appeal
to
the
board
to
be
valid,
written
notice
must
be
given
16
to
the
department
within
thirty
days
of
the
rendering
of
the
17
decision,
order,
or
directive
from
which
the
appeal
is
taken.
18
The
director
shall
certify
to
the
board
the
record,
documents,
19
reports,
audits,
and
all
other
information
pertinent
to
the
20
decision,
order,
or
directive
from
which
the
appeal
is
taken.
21
Sec.
2.
EFFECTIVE
UPON
ENACTMENT.
This
division
of
this
22
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
23
enactment.
24
Sec.
3.
APPLICABILITY.
This
division
of
this
Act
applies
25
to
appeals
made
to
the
state
board
of
tax
review
on
or
after
26
the
effective
date
of
this
division
of
this
Act,
and
appeals
27
pending
before
the
state
board
of
tax
review
on
the
effective
28
date
of
this
division
of
this
Act
shall
be
governed
by
section
29
421.1,
Code
2014.
30
DIVISION
II
31
ADMINISTRATIVE
APPEALS
32
Sec.
4.
Section
421.23,
Code
2014,
is
amended
to
read
as
33
follows:
34
421.23
Fees
and
mileage.
35
-1-
LSB
5312XD
(12)
85
mm/sc
1/
12
S.F.
_____
H.F.
_____
The
fees
and
mileage
of
witnesses
attending
any
hearing
of
1
the
department,
including
contested
case
hearings
but
excluding
2
small
case
hearings
,
pursuant
to
any
subpoena,
shall
be
the
3
same
as
those
of
witnesses
in
civil
cases
in
district
court.
4
Sec.
5.
Section
421.60,
subsection
2,
paragraph
g,
Code
5
2014,
is
amended
to
read
as
follows:
6
g.
A
taxpayer
may
request
in
writing
that
a
contested
case
7
proceeding
or
small
case
proceeding,
whichever
is
applicable,
8
be
commenced
by
the
department
after
a
period
of
six
months
9
from
the
filing
of
a
proper
appeal
by
the
taxpayer.
The
10
department
shall
file
an
answer
within
thirty
days
of
receipt
11
of
the
request
and
a
contested
case
proceeding
or
small
case
12
proceeding,
whichever
is
applicable,
shall
be
commenced.
In
13
the
case
of
an
appeal
of
an
assessment,
failure
to
answer
14
within
the
thirty-day
time
period
and
after
a
request
has
been
15
made
shall
result
in
the
suspension
of
interest
from
the
time
16
that
the
department
was
required
to
answer
until
the
date
that
17
the
department
files
its
answer.
In
the
case
of
an
appeal
of
18
a
denial
of
a
refund,
failure
to
answer
within
the
thirty-day
19
time
period,
and
after
a
request
has
been
made,
shall
result
in
20
the
accrual
of
interest
payable
to
the
taxpayer
at
double
the
21
rate
in
effect
under
section
421.7
from
the
time
the
department
22
was
required
to
answer
until
the
date
that
the
department
files
23
its
answer.
24
Sec.
6.
Section
421.60,
subsection
4,
paragraph
a,
25
unnumbered
paragraph
1,
Code
2014,
is
amended
to
read
as
26
follows:
27
A
prevailing
taxpayer
in
an
administrative
hearing
other
28
than
a
small
case
proceeding,
or
a
court
proceeding
related
to
29
the
determination,
collection,
or
refund
of
a
tax,
penalty,
30
or
interest
may
be
awarded
reasonable
litigation
costs
by
the
31
department,
state
board
of
tax
review,
or
a
court,
incurred
32
subsequent
to
the
issuance
of
the
notice
of
assessment
or
33
denial
of
claim
for
refund
in
the
proceeding,
based
upon
the
34
following:
35
-2-
LSB
5312XD
(12)
85
mm/sc
2/
12
S.F.
_____
H.F.
_____
Sec.
7.
Section
421.60,
subsection
6,
unnumbered
paragraph
1
1,
Code
2014,
is
amended
to
read
as
follows:
2
The
burden
of
proof
with
respect
to
assessments
or
denial
3
of
refunds
in
contested
case
proceedings
and
small
case
4
proceedings
shall
be
allocated
as
follows:
5
Sec.
8.
Section
421.60,
Code
2014,
is
amended
by
adding
the
6
following
new
subsection:
7
NEW
SUBSECTION
.
11.
Small
case
proceedings.
8
a.
The
department
shall
establish
small
case
proceedings
9
to
be
used
in
lieu
of
the
contested
case
proceedings
provided
10
pursuant
to
this
Title
X
and
chapter
17A.
11
b.
The
department
shall
adopt
rules
relating
to
small
case
12
proceedings,
including
but
not
limited
to
rules
establishing
13
the
types
of
actions
of
the
director
or
department
that
shall
14
be
considered
eligible
for
appeal
to
the
director
under
the
15
small
case
proceedings,
the
amount
of
tax
at
issue
that
shall
16
be
considered
a
small
case,
and
rules
relating
to
the
transfer
17
to
small
case
proceedings
of
eligible
cases
pending
before
the
18
director
on
the
effective
date
of
this
division
of
this
Act.
19
Actions
of
the
director
or
department
under
Title
X,
subtitle
20
2,
shall
not
be
eligible
for
the
small
case
proceedings.
21
c.
Use
of
the
small
case
proceedings
shall
be
at
the
22
election
of
the
taxpayer.
The
director
may
for
good
cause
23
refuse
use
of
the
small
case
proceedings
by
a
taxpayer
that
24
otherwise
meets
the
requirements
for
use
of
the
small
case
25
proceedings.
26
d.
Notwithstanding
the
provisions
of
this
Title
X,
chapter
27
17A,
or
any
other
provision
of
law
to
the
contrary,
all
of
the
28
following
apply
to
small
case
proceedings:
29
(1)
Small
case
proceedings
shall
be
informal.
To
the
30
extent
consistent
with
the
requirements
of
due
process,
the
31
department
may
by
rule
dispense
with
or
otherwise
modify
32
provisions
relating
to
formal
contested
case
proceedings,
33
including
but
not
limited
to
the
recording
and
transcribing
of
34
proceedings,
the
creation
of
a
detailed
case
record,
ex
parte
35
-3-
LSB
5312XD
(12)
85
mm/sc
3/
12
S.F.
_____
H.F.
_____
communications,
and
the
rules
of
civil
procedure.
1
(2)
The
presiding
officer
of
a
hearing
under
small
case
2
proceedings
shall
be
an
administrative
law
judge
assigned
by
3
the
division
of
inspections
and
appeals
in
accordance
with
the
4
provisions
of
section
10A.801.
5
(3)
The
decision
of
an
administrative
law
judge
shall
6
be
considered
the
final
action
of
the
department
under
7
chapter
17A,
and
shall
not
be
reviewed
by
the
director.
8
Notwithstanding
the
provisions
of
section
17A.19
or
any
9
other
provision
of
law
to
the
contrary,
the
decision
of
an
10
administrative
law
judge
in
a
small
case
proceeding
is
not
11
subject
to
judicial
review.
12
(4)
The
decision
of
an
administrative
law
judge
in
a
small
13
case
proceeding
shall
not
be
indexed
and
made
available
to
14
the
public
by
the
department,
and
shall
not
be
considered
as
15
precedent
in
any
other
case,
hearing,
or
proceeding.
16
(5)
The
administrative
law
judge
shall
notify
the
taxpayer
17
and
the
director
by
mail
of
the
decision.
18
e.
The
provisions
of
section
422.70
shall
also
be
applicable
19
to
an
administrative
law
judge
acting
under
the
authority
of
20
this
subsection.
21
Sec.
9.
Section
424.1,
subsection
4,
Code
2014,
is
amended
22
to
read
as
follows:
23
4.
The
board
shall
retain
rulemaking
authority,
but
may
24
contract
with
the
department
for
assistance
in
drafting
25
rules.
The
board
shall
retain
contested
case
jurisdiction
26
over
any
challenge
to
the
diminution
rate
or
cost
factor.
The
27
department
shall
conduct
all
other
contested
cases
or
small
28
case
proceedings,
whichever
is
applicable,
and
be
responsible
29
for
other
agency
action
in
connection
with
the
environmental
30
protection
charge
imposed
under
this
chapter
.
31
Sec.
10.
APPLICABILITY.
This
division
of
this
Act
applies
32
to
appeals
pending
before
the
director
of
revenue
on
January
33
1,
2015,
and
to
appeals
made
to
the
director
of
revenue
on
or
34
after
January
1,
2015.
35
-4-
LSB
5312XD
(12)
85
mm/sc
4/
12
S.F.
_____
H.F.
_____
DIVISION
III
1
STUDY
REPORT
2
Sec.
11.
ADMINISTRATIVE
APPEALS
PROCESS
FOR
TAX
MATTERS
——
3
REPORT.
The
department
of
revenue,
in
consultation
with
the
4
department
of
management
and
other
interested
stakeholders,
5
shall
continue
to
study
the
independence,
effectiveness,
6
and
fairness
of
the
state’s
current
administrative
appeals
7
processes
for
tax
matters
and
shall
make
recommendations
8
for
changes,
if
necessary,
and
shall
additionally
study
the
9
desirability,
practicality,
and
feasibility
of
replacing
10
components
of
these
processes
with
new
administrative
appeals
11
processes
for
tax
matters
within
the
executive
branch
to
12
resolve
disputes
between
the
department
of
revenue
and
13
taxpayers.
The
department
of
revenue
shall
prepare
and
14
file
a
report,
if
necessary,
detailing
its
findings
and
15
recommendations
with
the
chairpersons
and
ranking
members
of
16
the
ways
and
means
committees
of
the
senate
and
the
house
of
17
representatives
and
with
the
legislative
services
agency
by
18
January
8,
2015.
19
DIVISION
IV
20
INCOME
TAXES
21
Sec.
12.
Section
422.16,
subsection
11,
paragraph
a,
Code
22
2014,
is
amended
to
read
as
follows:
23
a.
A
person
or
married
couple
filing
a
return
shall
make
24
estimated
tax
payments
if
the
person’s
or
couple’s
Iowa
25
income
tax
attributable
to
income
other
than
wages
subject
26
to
withholding
can
reasonably
be
expected
to
amount
to
two
27
five
hundred
dollars
or
more
for
the
taxable
year,
except
28
that,
in
the
cases
of
farmers
and
fishermen,
the
exceptions
29
provided
in
the
Internal
Revenue
Code
with
respect
to
making
30
estimated
payments
apply.
The
estimated
tax
shall
be
paid
in
31
quarterly
installments.
The
first
installment
shall
be
paid
32
on
or
before
the
last
day
of
the
fourth
month
of
the
taxpayer’s
33
tax
year
for
which
the
estimated
payments
apply.
The
other
34
installments
shall
be
paid
on
or
before
the
last
day
of
the
35
-5-
LSB
5312XD
(12)
85
mm/sc
5/
12
S.F.
_____
H.F.
_____
sixth
month
of
the
tax
year,
the
last
day
of
the
ninth
month
1
of
the
tax
year,
and
the
last
day
of
the
first
month
after
the
2
tax
year.
However,
at
the
election
of
the
person
or
married
3
couple,
an
installment
of
the
estimated
tax
may
be
paid
prior
4
to
the
date
prescribed
for
its
payment.
If
a
person
or
married
5
couple
filing
a
return
has
reason
to
believe
that
the
person’s
6
or
couple’s
Iowa
income
tax
may
increase
or
decrease,
either
7
for
purposes
of
meeting
the
requirement
to
make
estimated
8
tax
payments
or
for
the
purpose
of
increasing
or
decreasing
9
estimated
tax
payments,
the
person
or
married
couple
shall
10
increase
or
decrease
any
subsequent
estimated
tax
payments
11
accordingly.
12
Sec.
13.
Section
422.85,
Code
2014,
is
amended
to
read
as
13
follows:
14
422.85
Imposition
of
estimated
tax.
15
A
taxpayer
subject
to
the
tax
imposed
by
sections
422.33
and
16
422.60
shall
make
payments
of
estimated
tax
for
the
taxable
17
year
if
the
amount
of
tax
payable,
less
credits,
can
reasonably
18
be
expected
to
be
more
than
one
two
thousand
dollars
for
the
19
taxable
year.
For
purposes
of
this
division
,
“estimated
tax”
20
means
the
amount
which
that
the
taxpayer
estimates
to
be
the
21
tax
due
and
payable
under
division
III
or
V
of
this
chapter
for
22
the
taxable
year.
23
Sec.
14.
Section
422.86,
subsections
1,
2,
3,
and
4,
Code
24
2014,
are
amended
to
read
as
follows:
25
1.
If
it
is
first
determined
that
the
estimated
tax
will
26
be
greater
than
one
two
thousand
dollars
on
or
before
the
last
27
day
of
the
fourth
month
of
the
taxable
year,
the
estimated
28
tax
shall
be
paid
in
four
equal
installments.
The
first
29
installment
shall
be
paid
not
later
than
the
last
day
of
30
the
fourth
month
of
the
taxable
year.
The
second
and
third
31
installments
shall
be
paid
not
later
than
the
last
day
of
the
32
sixth
and
ninth
months
of
the
taxable
year,
and
the
final
33
installment
shall
be
paid
on
or
before
the
last
day
of
the
34
taxable
year.
35
-6-
LSB
5312XD
(12)
85
mm/sc
6/
12
S.F.
_____
H.F.
_____
2.
If
it
is
first
determined
that
the
estimated
tax
will
1
be
greater
than
one
two
thousand
dollars
after
the
last
day
of
2
the
fourth
month
but
not
later
than
the
last
day
of
the
sixth
3
month
of
the
taxable
year,
the
estimated
tax
shall
be
paid
in
4
three
equal
installments.
The
first
installment
shall
be
paid
5
not
later
than
the
last
day
of
the
sixth
month
of
the
taxable
6
year.
The
second
installment
shall
be
paid
on
or
before
the
7
last
day
of
the
ninth
month
of
the
taxable
year
and
the
third
8
installment
shall
be
paid
on
or
before
the
last
day
of
the
9
taxable
year.
10
3.
If
it
is
first
determined
that
the
estimated
tax
will
11
be
greater
than
one
two
thousand
dollars
after
the
last
day
of
12
the
sixth
month
but
not
later
than
the
last
day
of
the
ninth
13
month
of
the
taxable
year,
the
estimated
tax
shall
be
paid
in
14
two
equal
installments.
The
first
installment
shall
be
paid
15
not
later
than
the
last
day
of
the
ninth
month
and
the
second
16
installment
shall
be
paid
on
or
before
the
last
day
of
the
17
taxable
year.
18
4.
If
it
is
first
determined
that
the
estimated
tax
will
19
be
greater
than
one
two
thousand
dollars
after
the
last
day
of
20
the
ninth
month
of
the
taxable
year,
the
estimated
tax
shall
be
21
paid
in
full
on
or
before
the
last
day
of
the
taxable
year.
22
Sec.
15.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
23
effect
January
1,
2015.
24
Sec.
16.
APPLICABILITY.
This
division
of
this
Act
applies
25
to
tax
years
beginning
on
or
after
January
1,
2015.
26
DIVISION
V
27
SALES
AND
USE
TAXES
28
Sec.
17.
Section
423.3,
subsection
8,
Code
2014,
is
amended
29
by
adding
the
following
new
paragraph:
30
NEW
PARAGRAPH
.
d.
For
purposes
of
this
subsection,
an
31
all-terrain
vehicle
and
an
off-road
utility
vehicle,
as
defined
32
in
section
321I.1,
are
exempt
under
paragraph
“a”
when
used
33
primarily
in
agricultural
production.
34
EXPLANATION
35
-7-
LSB
5312XD
(12)
85
mm/sc
7/
12
S.F.
_____
H.F.
_____
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
1
the
explanation’s
substance
by
the
members
of
the
general
assembly.
2
This
bill
relates
to
the
policy
administration
of
the
tax
3
and
related
laws
by
the
department
of
revenue,
including
the
4
administrative
appeals
process
for
tax
and
other
matters,
the
5
individual
and
corporate
income
tax
and
the
franchise
tax,
and
6
the
sales
and
use
taxes.
7
DIVISION
I
——
STATE
BOARD
OF
TAX
REVIEW.
Division
I
relates
8
to
the
state
board
of
tax
review.
The
state
board
of
tax
review
9
(board)
is
an
independent,
bipartisan
board
consisting
of
10
three
members
appointed
by
the
governor
and
confirmed
by
the
11
senate.
One
of
the
powers
and
duties
of
the
board
is
to
review
12
final
decisions
of
the
director,
including
but
not
limited
to
13
final
decisions
issued
by
the
director
in
a
contested
case.
14
The
board
also
has
the
original
jurisdiction
to
review
the
15
director’s
assessments
and
valuations
of
centrally
assessed
16
property
for
purposes
of
property
taxation,
which
means
the
17
taxpayer
appeals
the
assessment
or
valuation
of
the
director
18
directly
to
the
board.
Both
the
taxpayer
and
the
director
have
19
the
right
to
appeal
a
decision
of
the
board
to
district
court.
20
The
division
amends
the
types
of
decisions
of
the
director
21
that
may
be
reviewed
by
the
board
to
specify
that
only
22
decisions
made
under
Code
Title
X,
subtitle
2
(property
taxes),
23
may
be
appealed
to
the
board.
As
a
result,
decisions
of
the
24
director
with
regard
to
income
taxes,
franchise
taxes,
sales
25
and
use
taxes,
and
various
excise
and
other
taxes
will
no
26
longer
be
appealable
to
the
board
and
must
instead
be
appealed
27
directly
to
district
court.
28
The
division
takes
effect
upon
enactment
and
applies
to
29
appeals
made
to
the
board
on
or
after
the
effective
date
of
the
30
division,
and
appeals
pending
before
the
board
on
the
effective
31
date
of
the
division
shall
be
governed
by
current
Code
section
32
421.1.
33
DIVISION
II
——
ADMINISTRATIVE
APPEALS.
Division
II
relates
34
to
the
administrative
appeals
process
of
the
department
of
35
-8-
LSB
5312XD
(12)
85
mm/sc
8/
12
S.F.
_____
H.F.
_____
revenue
by
authorizing
small
case
proceedings.
1
Under
current
law,
when
a
taxpayer
appeals
a
decision
of
the
2
director
and
no
settlement
can
be
reached
between
the
parties,
3
the
director
grants
a
contested
case
hearing
pursuant
to
the
4
provisions
of
Code
chapter
17A
(Iowa
administrative
procedures
5
Act).
Following
a
contested
case
decision,
the
director
issues
6
a
final
decision.
The
director
can
and
often
does
transfer
7
contested
cases
to
an
administrative
law
judge
who
presides
8
over
the
hearing
and
issues
a
proposed
decision.
When
this
9
occurs,
the
director
may
adopt
the
proposed
decision
as
the
10
final
decision
of
the
department,
or
may
reverse
or
modify
11
the
proposed
decision
according
to
the
standards
provided
in
12
the
Iowa
administrative
procedures
Act.
Following
the
final
13
decision
of
the
director,
a
taxpayer
may
appeal
the
decision
14
to
the
state
board
of
tax
review
or
may
seek
judicial
review
of
15
the
decision.
16
The
division
requires
the
department
of
revenue
to
adopt
17
small
case
proceedings
that
may
be
used
at
the
election
of
the
18
taxpayer,
and
shall
be
in
lieu
of
a
contested
case
hearing.
19
The
department
is
required
to
adopt
rules
relating
to
small
20
case
proceedings,
including
but
not
limited
to
the
types
21
of
actions
of
the
director
and
amounts
of
tax
that
will
be
22
considered
eligible
for
small
case
proceedings.
The
department
23
is
also
required
to
adopt
rules
relating
to
the
transfer
to
24
the
small
case
proceedings
of
eligible
cases
pending
before
25
the
director
on
the
effective
date
of
the
division.
Actions
26
of
the
director
or
department
relating
to
property
taxes
are
27
not
eligible
for
the
small
case
proceedings.
The
department
28
may
refuse
use
of
the
small
case
proceedings
to
a
taxpayer
29
for
good
cause.
The
division
requires
small
case
proceedings
30
to
be
informal
and
allows
the
department
to
dispense
with
31
or
otherwise
modify
provisions
relating
to
formal
contested
32
case
proceedings
such
as
the
recording
and
transcribing
33
of
proceedings,
the
creation
of
a
detailed
case
record,
ex
34
parte
communications,
and
the
rules
of
civil
procedure.
The
35
-9-
LSB
5312XD
(12)
85
mm/sc
9/
12
S.F.
_____
H.F.
_____
presiding
officer
of
a
hearing
under
small
case
proceedings
1
shall
be
an
administrative
law
judge
assigned
by
the
department
2
of
inspections
and
appeals.
The
decision
of
the
administrative
3
law
judge
in
a
small
case
proceeding
shall
be
considered
the
4
final
action
of
the
department
of
revenue
and
shall
not
be
5
reviewed
by
the
director
or
appealed
to
district
court
by
the
6
taxpayer
or
the
director.
Furthermore,
the
decision
of
the
7
administrative
law
judge
in
a
small
case
proceeding
shall
not
8
be
indexed
and
made
available
to
the
public,
and
shall
not
9
be
considered
as
precedent
in
any
other
case,
hearing,
or
10
proceeding.
11
The
division
applies
all
the
provisions
of
Code
section
12
422.70,
relating
to
the
general
hearing
powers
of
the
director,
13
to
an
administrative
law
judge
acting
under
the
authority
of
14
the
small
case
proceedings.
15
The
division
specifies
that
the
provision
of
fees
and
16
mileage
of
witnesses,
and
the
awarding
of
litigation
costs
in
17
certain
situations,
shall
not
apply
to
small
case
proceedings.
18
APPLICABILITY.
The
division
applies
to
appeals
pending
19
before
the
director
on
January
1,
2015,
and
to
appeals
made
to
20
the
director
on
or
after
January
1,
2015.
21
DIVISION
III
——
STUDY
REPORT.
Division
III
establishes
22
a
report
to
be
prepared
and
filed,
if
necessary,
by
the
23
department
of
revenue.
The
department
of
revenue,
in
24
consultation
with
the
department
of
management
and
other
25
interested
stakeholders,
shall
continue
to
study
the
current
26
administrative
appeals
processes
for
tax
matters
and
make
27
recommendations
for
changes
if
necessary,
and
also
study
the
28
possibility
of
creating
new
administrative
appeals
processes.
29
The
report,
if
necessary,
detailing
any
recommended
changes
30
or
findings
shall
be
filed
with
the
chairperson
and
ranking
31
members
of
the
ways
and
means
committees
of
the
senate
and
the
32
house
of
representatives
and
with
the
legislative
services
33
agency
by
January
8,
2015.
A
similar
study
and
report
was
34
conducted
last
year
and
filed
on
January
8,
2014,
by
the
35
-10-
LSB
5312XD
(12)
85
mm/sc
10/
12
S.F.
_____
H.F.
_____
department
of
revenue.
1
DIVISION
IV
——
INDIVIDUAL
AND
CORPORATE
INCOME
TAX
AND
2
FRANCHISE
TAX.
Division
IV
increases
the
threshold
at
which
3
estimated
payments
are
required
to
be
made
under
the
individual
4
and
corporate
income
tax
and
the
franchise
tax.
Under
current
5
law,
an
individual
must
make
estimated
tax
payments
if
the
6
individual’s
income,
other
than
wages
subject
to
withholding,
7
will
be
$200
or
more
during
the
tax
year.
The
division
8
increases
this
amount
to
$500.
Also
under
current
law,
a
9
corporation
subject
to
the
corporate
income
tax
and
a
financial
10
institution
subject
to
the
franchise
tax
must
make
estimated
11
tax
payments
if
the
corporation’s
or
financial
institution’s
12
tax
during
the
tax
year
will
exceed
$1,000.
The
division
13
increases
this
amount
to
$2,000.
The
division
takes
effect
14
January
1,
2015,
and
applies
to
tax
years
beginning
on
or
after
15
that
date.
16
DIVISION
V
——
SALES
AND
USE
TAXES.
Division
V
exempts
17
the
sales
price
of
all-terrain
vehicles
and
off-road
utility
18
vehicles
used
primarily
in
agricultural
production
from
the
19
sales
and
use
tax.
Under
current
law,
such
vehicles
are
not
20
exempt
from
sales
and
use
tax
unless
they
are
directly
and
21
primarily
used
in
production
of
agricultural
products.
22
“All-terrain
vehicle”
means
a
motorized
vehicle
with
not
23
less
than
three
and
not
more
than
six
nonhighway
tires
that
24
is
limited
in
engine
displacement
to
less
than
1,000
cubic
25
centimeters
and
in
total
dry
weight
to
less
than
1,200
pounds
26
and
that
has
a
seat
or
saddle
designed
to
be
straddled
by
the
27
operator
and
handlebars
for
steering
control.
28
“Off-road
utility
vehicle”
means
a
motorized
vehicle
with
29
not
less
than
four
and
not
more
than
eight
nonhighway
tires
or
30
rubberized
tracks
that
is
limited
in
engine
displacement
to
31
less
than
1,500
cubic
centimeters
and
in
total
dry
weight
to
32
not
more
than
2,000
pounds
and
that
has
a
seat
that
is
of
bucket
33
or
bench
design,
not
intended
to
be
straddled
by
the
operator,
34
and
a
steering
wheel
or
control
levers
for
control.
35
-11-
LSB
5312XD
(12)
85
mm/sc
11/
12
