Bill Text: IA SSB3209 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A study bill for an act exempting from the state sales tax the sales price from the sale or furnishing of metered water to residential customers and creating state and local residential metered water excise taxes.
Spectrum: Unknown
Status: (N/A - Dead) 2014-03-10 - In Ways and Means [SSB3209 Detail]
Download: Iowa-2013-SSB3209-Introduced.html
Senate
Study
Bill
3209
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
BOLKCOM)
A
BILL
FOR
An
Act
exempting
from
the
state
sales
tax
the
sales
price
from
1
the
sale
or
furnishing
of
metered
water
to
residential
2
customers
and
creating
state
and
local
residential
metered
3
water
excise
taxes.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
TLSB
5572XC
(2)
85
mm/sc
S.F.
_____
Section
1.
Section
423.3,
Code
2014,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
101.
The
sales
price
from
the
sale
or
3
furnishing
of
metered
water
to
residential
customers
for
use
at
4
residential
dwellings
and
units
of
apartment
and
condominium
5
complexes
used
for
human
occupancy.
6
Sec.
2.
NEW
SECTION
.
423G.1
Short
title.
7
This
chapter
may
be
cited
as
the
“Residential
Metered
Water
8
Tax
Act”
.
9
Sec.
3.
NEW
SECTION
.
423G.2
Definitions.
10
All
words
and
phrases
used
in
this
chapter
and
defined
in
11
section
423.1
have
the
same
meaning
given
them
by
section
423.1
12
for
purposes
of
this
chapter.
13
Sec.
4.
NEW
SECTION
.
423G.3
State-imposed
residential
14
metered
water
tax.
15
1.
A
tax
at
the
rate
specified
in
subsection
2
is
imposed
on
16
the
sales
price
from
the
sale
or
furnishing
of
metered
water
17
to
residential
customers
for
use
at
residential
dwellings
and
18
units
of
apartment
and
condominium
complexes
used
for
human
19
occupancy.
20
2.
a.
If
the
date
of
the
utility
billing
or
meter
reading
21
cycle
of
the
residential
customer
for
the
sale
or
furnishing
22
of
metered
water
is
on
or
after
July
1,
2014,
but
before
July
23
1,
2015,
or
if
the
sale
or
furnishing
of
the
water
and
the
24
delivery
of
the
water
occurs
on
or
after
July
1,
2014,
but
25
before
July
1,
2015,
the
rate
of
tax
is
six
percent.
26
b.
If
the
date
of
the
utility
billing
or
meter
reading
27
cycle
of
the
residential
customer
for
the
sale
or
furnishing
28
of
metered
water
is
on
or
after
July
1,
2015,
but
before
July
29
1,
2016,
or
if
the
sale
or
furnishing
of
the
water
and
the
30
delivery
of
the
water
occurs
on
or
after
July
1,
2015,
but
31
before
July
1,
2016,
the
rate
of
tax
is
five
percent.
32
c.
If
the
date
of
the
utility
billing
or
meter
reading
33
cycle
of
the
residential
customer
for
the
sale
or
furnishing
34
of
metered
water
is
on
or
after
July
1,
2016,
but
before
July
35
-1-
LSB
5572XC
(2)
85
mm/sc
1/
7
S.F.
_____
1,
2017,
or
if
the
sale
or
furnishing
of
the
water
and
the
1
delivery
of
the
water
occurs
on
or
after
July
1,
2016,
but
2
before
July
1,
2017,
the
rate
of
tax
is
four
percent.
3
d.
If
the
date
of
the
utility
billing
or
meter
reading
4
cycle
of
the
residential
customer
for
the
sale
or
furnishing
5
of
metered
water
is
on
or
after
July
1,
2017,
but
before
July
6
1,
2018,
or
if
the
sale
or
furnishing
of
the
water
and
the
7
delivery
of
the
water
occurs
on
or
after
July
1,
2017,
but
8
before
July
1,
2018,
the
rate
of
tax
is
three
percent.
9
e.
If
the
date
of
the
utility
billing
or
meter
reading
10
cycle
of
the
residential
customer
for
the
sale
or
furnishing
11
of
metered
water
is
on
or
after
July
1,
2018,
but
before
July
12
1,
2019,
or
if
the
sale
or
furnishing
of
the
water
and
the
13
delivery
of
the
water
occurs
on
or
after
July
1,
2018,
but
14
before
July
1,
2019,
the
rate
of
tax
is
two
percent.
15
f.
If
the
date
of
the
utility
billing
or
meter
reading
16
cycle
of
the
residential
customer
for
the
sale
or
furnishing
of
17
metered
water
is
on
or
after
July
1,
2019,
but
before
January
18
1,
2030,
or
if
the
sale
or
furnishing
of
the
water
and
the
19
delivery
of
the
water
occurs
on
or
after
July
1,
2019,
but
20
before
January
1,
2030,
the
rate
of
tax
is
one
percent.
21
g.
If
the
date
of
the
utility
billing
or
meter
reading
22
cycle
of
the
residential
customer
for
the
sale
or
furnishing
23
of
metered
water,
or
the
date
of
the
sale
or
furnishing
of
the
24
water
and
the
delivery
of
the
water,
is
on
or
after
January
1,
25
2030,
the
rate
of
tax
is
zero
percent.
26
3.
This
section
is
repealed
June
30,
2030.
27
Sec.
5.
NEW
SECTION
.
423G.4
Locally
imposed
residential
28
metered
water
tax.
29
1.
a.
A
county
that
is
not
subject
to
subsection
2
may
30
impose
a
local
residential
metered
water
tax
at
a
rate
of
not
31
more
than
one
percent
of
the
sales
price
from
the
sale
or
32
furnishing
of
metered
water
to
residential
customers
for
use
at
33
residential
dwellings
and
units
of
apartment
and
condominium
34
complexes
used
for
human
occupancy.
The
tax
shall
be
imposed,
35
-2-
LSB
5572XC
(2)
85
mm/sc
2/
7
S.F.
_____
collected,
and
administered
in
the
same
manner
as
the
local
1
sales
and
services
tax
in
chapter
423B
and
sections
423B.1,
2
423B.5,
423B.6,
423B.7,
423B.8,
423B.9,
and
423B.10,
consistent
3
with
the
provisions
of
this
chapter,
shall
apply
with
respect
4
to
the
tax
authorized
under
this
subsection,
in
the
same
manner
5
and
with
the
same
effect
as
if
the
local
residential
metered
6
water
tax
was
a
local
sales
and
services
tax
within
the
meaning
7
of
those
statutes.
8
b.
The
question
of
the
imposition
of
a
local
residential
9
metered
water
tax
may
be
submitted
at
the
same
election
as
the
10
local
option
taxes
authorized
under
chapter
423B.
11
c.
This
subsection
shall
not
be
construed
to
require
a
12
county
to
impose
a
local
residential
metered
water
tax
if
the
13
county
imposes
a
local
sales
and
services
tax.
14
2.
a.
If
a
city
or
county
has
in
effect
a
local
sales
15
and
services
tax
under
chapter
423B
on
the
effective
date
of
16
this
Act,
that
city
or
county
shall
impose
on
and
after
the
17
effective
date
of
this
Act
a
local
residential
metered
water
18
tax
at
the
same
rate
as
the
local
sales
and
services
tax
on
19
the
sales
price
from
the
sale
or
furnishing
of
metered
water
20
to
residential
customers
for
use
at
residential
dwellings
and
21
units
of
apartment
and
condominium
complexes
used
for
human
22
occupancy.
The
local
residential
metered
water
tax
shall
be
23
imposed,
collected,
and
administered
in
the
same
manner
and
24
with
the
same
effect
as
the
city’s
or
county’s
local
sales
and
25
services
tax
under
chapter
423B
and
sections
423B.1,
423B.5,
26
423B.6,
423B.7,
423B.8,
423B.9,
and
423B.10,
consistent
with
27
the
provisions
of
this
chapter,
shall
apply
with
respect
to
28
the
tax
imposed
under
this
subsection,
in
the
same
manner
and
29
with
the
same
effect
as
if
the
local
residential
metered
water
30
tax
was
a
local
sales
and
services
tax
within
the
meaning
of
31
chapter
423B.
32
b.
The
city
or
county
shall
within
60
days
of
the
effective
33
date
of
this
Act
amend
its
local
sales
and
services
tax
34
ordinance
to
reflect
the
imposition
of
the
local
residential
35
-3-
LSB
5572XC
(2)
85
mm/sc
3/
7
S.F.
_____
metered
water
tax
under
this
subsection.
1
c.
The
city
or
county
shall
continue
to
collect
the
local
2
residential
metered
water
tax
imposed
under
this
subsection
3
until
such
time
as
the
local
sales
and
services
tax
in
effect
4
on
the
effective
date
of
this
Act
is
repealed
by
the
city
or
5
county.
6
Sec.
6.
NEW
SECTION
.
423G.5
Exemptions.
7
The
sales
price
from
transactions
exempt
from
state
sales
8
tax
under
section
423.3,
except
section
423.3,
subsection
101,
9
is
also
exempt
from
the
tax
imposed
by
this
chapter.
10
Sec.
7.
NEW
SECTION
.
423G.6
Administration
by
director.
11
1.
The
director
of
revenue
shall
administer
the
state
and
12
local
residential
metered
water
tax
as
nearly
as
possible
in
13
conjunction
with
the
administration
of
the
state
sales
and
use
14
tax
law,
except
that
portion
of
the
law
which
implements
the
15
streamlined
sales
and
use
tax
agreement.
The
director
shall
16
provide
appropriate
forms,
or
provide
on
the
regular
state
tax
17
forms,
for
reporting
state
and
local
residential
metered
water
18
tax
liability.
19
2.
The
director
may
require
all
persons
who
are
engaged
20
in
the
business
of
deriving
any
sales
price
or
purchase
21
price
subject
to
tax
under
this
chapter
to
register
with
22
the
department.
The
director
may
also
require
a
tax
permit
23
applicable
only
to
this
chapter
for
any
retailer
not
24
collecting,
or
any
user
not
paying,
taxes
under
chapter
423.
25
3.
Section
422.25,
subsection
4,
sections
422.30,
422.67,
26
and
422.68,
section
422.69,
subsection
1,
sections
422.70,
27
422.71,
422.72,
422.74,
and
422.75,
section
423.14,
subsection
28
1,
and
sections
423.23,
423.24,
423.25,
423.31
through
29
423.35,
423.37
through
423.42,
and
423.47,
consistent
with
30
the
provisions
of
this
chapter,
shall
apply
with
respect
to
31
the
taxes
authorized
under
this
chapter,
in
the
same
manner
32
and
with
the
same
effect
as
if
the
excise
taxes
on
the
sale
33
or
furnishing
of
metered
water
to
residential
customers
were
34
retail
sales
taxes
within
the
meaning
of
those
statutes.
35
-4-
LSB
5572XC
(2)
85
mm/sc
4/
7
S.F.
_____
Notwithstanding
this
paragraph,
the
director
shall
provide
1
for
quarterly
filing
of
returns
and
for
other
than
quarterly
2
filing
of
returns
both
as
prescribed
in
section
423.31.
All
3
taxes
collected
under
this
chapter
by
a
retailer
or
any
user
4
are
deemed
to
be
held
in
trust
for
the
state
of
Iowa.
5
Sec.
8.
NEW
SECTION
.
423G.7
Deposit
of
revenues.
6
1.
All
moneys
received
and
all
refunds
shall
be
deposited
in
7
or
withdrawn
from
the
general
fund
of
the
state.
8
2.
The
director,
in
consultation
with
local
officials,
9
shall
collect
and
account
for
a
local
residential
metered
10
water
tax
and
shall
credit
all
revenues
in
the
same
manner
11
as
provided
in
section
423B.7.
Local
authorities
shall
not
12
require
any
tax
permit
not
required
by
the
director
of
revenue.
13
3.
Subsequent
to
the
deposit
in
the
general
fund
of
the
14
state,
the
department
shall
do
the
following
in
the
order
15
prescribed:
16
a.
Transfer
the
revenues
collected
under
section
423G.3
in
17
the
manner
prescribed
in
section
423B.7.
18
b.
(1)
Transfer
from
the
remaining
revenues
the
following
19
amounts
to
the
secure
an
advanced
vision
for
education
fund
20
created
in
section
423F.2:
21
(a)
For
revenues
collected
on
or
after
July
1,
2014,
but
22
before
August
1,
2015,
one-sixth
of
the
remaining
revenues.
23
(b)
For
revenues
collected
on
or
after
August
1,
2015,
but
24
before
August
1,
2016,
one-fifth
of
the
remaining
revenues.
25
(c)
For
revenues
collected
on
or
after
August
1,
2016,
but
26
before
August
1,
2017,
one-fourth
of
the
remaining
revenues.
27
(d)
For
revenues
collected
on
or
after
August
1,
2017,
but
28
before
August
1,
2018,
one-third
of
the
remaining
revenues.
29
(e)
For
revenues
collected
on
or
after
August
1,
2018,
but
30
before
August
1,
2019,
one-half
of
the
remaining
revenues.
31
(f)
For
revenues
collected
on
or
after
August
1,
2019,
one
32
hundred
percent
of
the
remaining
revenues.
33
(2)
This
paragraph
is
repealed
June
30,
2030.
34
EXPLANATION
35
-5-
LSB
5572XC
(2)
85
mm/sc
5/
7
S.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
sale
of
metered
water
to
residential
3
customers.
4
The
bill
exempts
from
the
sales
tax
the
sales
price
from
the
5
sale
or
furnishing
of
metered
water
to
residential
customers
6
for
use
at
residential
dwellings
and
units
of
apartment
and
7
condominium
complexes
used
for
human
occupancy.
By
operation
8
of
Code
section
423.6,
an
item
exempt
from
the
imposition
of
9
the
sales
tax
is
also
exempt
from
the
use
tax
imposed
in
Code
10
section
423.5.
11
The
bill
creates
a
state
excise
tax
on
the
sales
price
12
from
the
sale
or
furnishing
of
metered
water
to
residential
13
customers
for
use
at
residential
dwellings
and
units
of
14
apartment
and
condominium
complexes
used
for
human
occupancy.
15
The
rate
of
the
excise
tax
begins
at
6
percent
for
fiscal
year
16
2014-2015,
which
is
the
same
rate
as
the
state
sales
tax,
and
17
is
reduced
one
percentage
point
each
fiscal
year
for
the
next
18
four
fiscal
years
until
it
is
set
at
1
percent
for
July
1,
19
2019,
through
December
31,
2029.
The
remaining
1
percent
state
20
residential
metered
water
tax
will
no
longer
be
collected
on
or
21
after
January
1,
2030,
which
is
the
same
date
the
state
sales
22
tax
rate
is
reduced
to
5
percent
from
6
percent
because
of
the
23
repeal
of
the
1
percent
secure
an
advanced
vision
for
education
24
tax
rate.
25
The
bill
requires
that
a
certain
percentage
of
the
state
26
residential
metered
water
tax
revenues
collected
each
year
be
27
transferred
to
the
secure
an
advanced
vision
for
education
fund
28
created
in
Code
section
423F.2
in
order
to
ensure
that
the
fund
29
receives
an
amount
of
revenue
approximating
one
percentage
30
point
of
the
total
tax
rate
imposed.
31
The
bill
also
creates
a
locally
imposed
residential
metered
32
water
tax
of
up
to
1
percent
that
may,
at
the
option
of
a
33
county,
be
imposed,
collected,
and
administered
by
a
county
in
34
the
same
manner
as
the
local
sales
and
services
tax
in
Code
35
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S.F.
_____
chapter
423B.
The
bill
incorporates
by
reference
many
of
the
1
provisions
of
Code
chapter
423B.
The
bill
allows
an
election
2
for
the
imposition
of
a
local
residential
metered
water
tax
to
3
occur
at
the
same
election
as
for
a
local
option
tax
authorized
4
under
Code
chapter
423B.
A
county
will
not
be
required
to
5
impose
a
local
residential
metered
water
tax
if
the
county
6
imposes
a
local
sales
and
services
tax.
7
The
bill
provides
that
a
city
or
county
that
has
a
local
8
sales
and
services
tax
in
effect
on
the
effective
date
of
the
9
bill
is
required
to
impose
a
local
residential
metered
water
10
tax
at
the
same
rate
and
in
the
same
manner
as
the
city’s
or
11
county’s
local
sales
and
services
tax.
The
city
or
county
is
12
required
to
amend
its
local
sales
and
services
tax
ordinance
13
within
60
days
of
the
effective
date
of
the
bill
to
reflect
the
14
imposition
of
the
local
residential
metered
water
tax.
The
15
city
or
county
shall
continue
to
collect
the
required
local
16
residential
metered
water
tax
until
the
city’s
or
county’s
17
sales
and
services
tax
in
effect
on
the
effective
date
of
the
18
bill
is
repealed.
19
The
director
of
revenue
is
required
to
administer
the
20
state
and
local
residential
metered
water
tax
as
nearly
as
21
possible
in
conjunction
with
the
administration
of
the
state
22
sales
and
use
tax
law
and
to
that
end
the
bill
incorporates
by
23
reference
numerous
Code
sections
that
relate
to
general
tax
24
administration
and
the
sales
and
use
tax
laws.
25
Revenues
collected
from
the
local
option
residential
metered
26
water
tax
are
credited
to
local
governments
in
the
same
manner
27
as
local
option
taxes
under
Code
chapter
423B.
28
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