Bill Text: IA HF2470 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A bill for an act relating to state financial matters, including state sales and use taxes, the natural resources and outdoor recreation trust fund, and the state individual income tax, and including effective date and applicability provisions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-04-24 - Subcommittee, Windschitl, Isenhart, and Sands. H.J. 800. [HF2470 Detail]
Download: Iowa-2013-HF2470-Introduced.html
House
File
2470
-
Introduced
HOUSE
FILE
2470
BY
ISENHART
A
BILL
FOR
An
Act
relating
to
state
financial
matters,
including
state
1
sales
and
use
taxes,
the
natural
resources
and
outdoor
2
recreation
trust
fund,
and
the
state
individual
income
tax,
3
and
including
effective
date
and
applicability
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
TLSB
5249YH
(9)
85
mm/sc
H.F.
2470
DIVISION
I
1
SALES
AND
USE
TAXES
AND
THE
NATURAL
RESOURCES
AND
OUTDOOR
2
RECREATION
TRUST
FUND
3
Section
1.
Section
423.2,
subsection
1,
unnumbered
4
paragraph
1,
Code
2014,
is
amended
to
read
as
follows:
5
There
is
imposed
a
tax
of
six
and
three-eighths
percent
upon
6
the
sales
price
of
all
sales
of
tangible
personal
property,
7
consisting
of
goods,
wares,
or
merchandise,
sold
at
retail
in
8
the
state
to
consumers
or
users
except
as
otherwise
provided
9
in
this
subchapter
.
10
Sec.
2.
Section
423.2,
subsections
2
and
3,
Code
2014,
are
11
amended
to
read
as
follows:
12
2.
A
tax
of
six
and
three-eighths
percent
is
imposed
upon
13
the
sales
price
of
the
sale
or
furnishing
of
gas,
electricity,
14
water,
heat,
pay
television
service,
and
communication
service,
15
including
the
sales
price
from
such
sales
by
any
municipal
16
corporation
or
joint
water
utility
furnishing
gas,
electricity,
17
water,
heat,
pay
television
service,
and
communication
service
18
to
the
public
in
its
proprietary
capacity,
except
as
otherwise
19
provided
in
this
subchapter
,
when
sold
at
retail
in
the
state
20
to
consumers
or
users.
21
3.
A
tax
of
six
and
three-eighths
percent
is
imposed
upon
22
the
sales
price
of
all
sales
of
tickets
or
admissions
to
places
23
of
amusement,
fairs,
and
athletic
events
except
those
of
24
elementary
and
secondary
educational
institutions.
A
tax
of
25
six
and
three-eighths
percent
is
imposed
on
the
sales
price
of
26
an
entry
fee
or
like
charge
imposed
solely
for
the
privilege
of
27
participating
in
an
activity
at
a
place
of
amusement,
fair,
or
28
athletic
event
unless
the
sales
price
of
tickets
or
admissions
29
charges
for
observing
the
same
activity
are
taxable
under
this
30
subchapter
.
A
tax
of
six
and
three-eighths
percent
is
imposed
31
upon
that
part
of
private
club
membership
fees
or
charges
paid
32
for
the
privilege
of
participating
in
any
athletic
sports
33
provided
club
members.
34
Sec.
3.
Section
423.2,
subsection
4,
paragraph
a,
Code
2014,
35
-1-
LSB
5249YH
(9)
85
mm/sc
1/
7
H.F.
2470
is
amended
to
read
as
follows:
1
a.
A
tax
of
six
and
three-eighths
percent
is
imposed
upon
2
the
sales
price
derived
from
the
operation
of
all
forms
of
3
amusement
devices
and
games
of
skill,
games
of
chance,
raffles,
4
and
bingo
games
as
defined
in
chapter
99B
,
and
card
game
5
tournaments
conducted
under
section
99B.7B
,
that
are
operated
6
or
conducted
within
the
state,
the
tax
to
be
collected
from
7
the
operator
in
the
same
manner
as
for
the
collection
of
taxes
8
upon
the
sales
price
of
tickets
or
admission
as
provided
in
9
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
2014,
is
amended
13
to
read
as
follows:
14
5.
There
is
imposed
a
tax
of
six
and
three-eighths
percent
15
upon
the
sales
price
from
the
furnishing
of
services
as
defined
16
in
section
423.1
.
17
Sec.
5.
Section
423.2,
subsection
7,
paragraph
a,
18
unnumbered
paragraph
1,
Code
2014,
is
amended
to
read
as
19
follows:
20
A
tax
of
six
and
three-eighths
percent
is
imposed
upon
the
21
sales
price
from
the
sales,
furnishing,
or
service
of
solid
22
waste
collection
and
disposal
service.
23
Sec.
6.
Section
423.2,
subsection
8,
paragraph
a,
Code
2014,
24
is
amended
to
read
as
follows:
25
a.
A
tax
of
six
and
three-eighths
percent
is
imposed
on
26
the
sales
price
from
sales
of
bundled
transactions.
For
the
27
purposes
of
this
subsection
,
a
“bundled
transaction”
is
the
28
retail
sale
of
two
or
more
distinct
and
identifiable
products,
29
except
real
property
and
services
to
real
property,
which
30
are
sold
for
one
nonitemized
price.
A
“bundled
transaction”
31
does
not
include
the
sale
of
any
products
in
which
the
sales
32
price
varies,
or
is
negotiable,
based
on
the
selection
by
the
33
purchaser
of
the
products
included
in
the
transaction.
34
Sec.
7.
Section
423.2,
subsection
9,
Code
2014,
is
amended
35
-2-
LSB
5249YH
(9)
85
mm/sc
2/
7
H.F.
2470
to
read
as
follows:
1
9.
A
tax
of
six
and
three-eighths
percent
is
imposed
upon
2
the
sales
price
from
any
mobile
telecommunications
service,
3
including
all
paging
services,
that
this
state
is
allowed
4
to
tax
pursuant
to
the
provisions
of
the
federal
Mobile
5
Telecommunications
Sourcing
Act,
Pub.
L.
No.
106-252,
4
U.S.C.
6
§
116
et
seq.
For
purposes
of
this
subsection
,
taxes
on
mobile
7
telecommunications
service,
as
defined
under
the
federal
Mobile
8
Telecommunications
Sourcing
Act
that
are
deemed
to
be
provided
9
by
the
customer’s
home
service
provider,
shall
be
paid
to
10
the
taxing
jurisdiction
whose
territorial
limits
encompass
11
the
customer’s
place
of
primary
use,
regardless
of
where
the
12
mobile
telecommunications
service
originates,
terminates,
13
or
passes
through
and
shall
in
all
other
respects
be
taxed
14
in
conformity
with
the
federal
Mobile
Telecommunications
15
Sourcing
Act.
All
other
provisions
of
the
federal
Mobile
16
Telecommunications
Sourcing
Act
are
adopted
by
the
state
of
17
Iowa
and
incorporated
into
this
subsection
by
reference.
With
18
respect
to
mobile
telecommunications
service
under
the
federal
19
Mobile
Telecommunications
Sourcing
Act,
the
director
shall,
if
20
requested,
enter
into
agreements
consistent
with
the
provisions
21
of
the
federal
Act.
22
Sec.
8.
Section
423.2,
subsection
11,
paragraph
b,
23
subparagraph
(2),
Code
2014,
is
amended
to
read
as
follows:
24
(2)
Transfer
from
the
remaining
revenues
the
amounts
25
required
under
Article
VII,
section
10,
of
the
Constitution
26
of
the
State
of
Iowa
to
the
natural
resources
and
outdoor
27
recreation
trust
fund
created
in
section
461.31
,
if
applicable
.
28
Sec.
9.
Section
423.2,
subsection
13,
Code
2014,
is
amended
29
to
read
as
follows:
30
13.
The
sales
tax
rate
of
six
and
three-eighths
percent
is
31
reduced
to
five
and
three-eighths
percent
on
January
1,
2030.
32
Sec.
10.
Section
423.5,
subsection
1,
unnumbered
paragraph
33
1,
Code
2014,
is
amended
to
read
as
follows:
34
Except
as
provided
in
paragraph
“c”
,
an
excise
tax
at
the
35
-3-
LSB
5249YH
(9)
85
mm/sc
3/
7
H.F.
2470
rate
of
six
and
three-eighths
percent
of
the
purchase
price
or
1
installed
purchase
price
is
imposed
on
the
following:
2
Sec.
11.
Section
423.5,
subsection
5,
Code
2014,
is
amended
3
to
read
as
follows:
4
5.
The
use
tax
rate
of
six
and
three-eighths
percent
is
5
reduced
to
five
and
three-eighths
percent
on
January
1,
2030.
6
Sec.
12.
Section
423.43,
subsection
1,
paragraph
b,
Code
7
2014,
is
amended
to
read
as
follows:
8
b.
Subsequent
to
the
deposit
into
the
general
fund
of
the
9
state
and
after
the
transfer
of
such
pursuant
to
paragraph
“a”,
10
the
department
shall
do
the
following
in
the
order
prescribed:
11
(1)
Transfer
the
revenues
collected
under
chapter
423B
,
the
12
department
shall
transfer
one-sixth
.
13
(2)
Transfer
fifteen
and
six
thousand
eight
hundred
14
sixty-three
ten-thousandths
percent
of
such
remaining
revenues
15
to
the
secure
an
advanced
vision
for
education
fund
created
in
16
section
423F.2
.
This
paragraph
subparagraph
(2)
is
repealed
17
December
31,
2029.
18
Sec.
13.
PURPOSE.
The
purpose
of
this
division
of
this
Act
19
is
to
provide
for
the
implementation
of
Article
VII,
section
20
10,
of
the
Constitution
of
the
State
of
Iowa
by
fully
funding
21
the
natural
resources
and
outdoor
recreation
trust
fund
as
22
created
in
section
461.31,
pursuant
to
Article
VII,
section
10,
23
of
the
Constitution
of
the
State
of
Iowa.
24
Sec.
14.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
25
effect
on
July
1,
2015.
26
DIVISION
II
27
INDIVIDUAL
INCOME
TAXES
28
Sec.
15.
Section
422.12,
subsection
2,
paragraph
a,
Code
29
2014,
is
amended
by
striking
the
paragraph.
30
Sec.
16.
NEW
SECTION
.
422.12A
Personal
exemption
credits.
31
1.
The
taxes
imposed
under
this
division
less
the
credits
32
allowed
under
this
division
except
for
the
credits
for
withheld
33
tax
and
estimated
tax
paid
in
section
422.16,
shall
be
reduced
34
by
a
personal
exemption
credit
in
the
following
amounts:
35
-4-
LSB
5249YH
(9)
85
mm/sc
4/
7
H.F.
2470
a.
For
an
estate
or
trust,
a
single
individual,
or
a
married
1
person
filing
a
separate
return,
ninety-five
dollars.
2
b.
For
a
head
of
household,
or
a
husband
and
wife
filing
a
3
joint
return,
one
hundred
ninety
dollars.
4
c.
For
each
dependent,
an
additional
seventy
dollars.
5
d.
For
a
single
individual,
husband,
wife,
or
head
of
6
household,
an
additional
exemption
of
twenty
dollars
for
each
7
of
said
individuals
who
has
attained
the
age
of
sixty-five
8
years
before
the
close
of
the
tax
year
or
on
the
first
day
9
following
the
end
of
the
tax
year.
10
e.
For
a
single
individual,
husband,
wife,
or
head
of
11
household,
an
additional
exemption
of
twenty
dollars
for
each
12
of
said
individuals
who
is
blind
at
the
close
of
the
tax
year.
13
For
the
purposes
of
this
subparagraph,
an
individual
is
blind
14
only
if
the
individual’s
central
visual
acuity
does
not
exceed
15
twenty-two
hundredths
in
the
better
eye
with
correcting
lenses,
16
or
if
the
individual’s
visual
acuity
is
greater
than
twenty-two
17
hundredths
but
is
accompanied
by
a
limitation
in
the
fields
18
of
vision
such
that
the
widest
diameter
of
the
visual
field
19
subtends
an
angle
no
greater
than
twenty
degrees.
20
2.
Any
credit
in
excess
of
the
tax
liability
is
refundable.
21
However,
for
nonresidents
or
part-year
residents
the
amount
of
22
the
credit
in
excess
of
the
tax
liability
that
may
be
refunded
23
shall
be
in
the
ratio
of
their
Iowa
source
net
income
to
their
24
all
source
net
income
under
rules
prescribed
by
the
director.
25
3.
For
purposes
of
this
section,
“dependent”
has
the
same
26
meaning
as
provided
by
the
Internal
Revenue
Code.
27
Sec.
17.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
28
effect
January
1,
2015.
29
Sec.
18.
APPLICABILITY.
This
division
of
this
Act
applies
30
to
tax
years
beginning
on
or
after
January
1,
2015.
31
EXPLANATION
32
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
33
the
explanation’s
substance
by
the
members
of
the
general
assembly.
34
DIVISION
I
——
SALES
AND
USE
TAXES.
Division
I
relates
to
35
-5-
LSB
5249YH
(9)
85
mm/sc
5/
7
H.F.
2470
state
sales
and
use
taxes
and
to
an
amendment
to
the
Iowa
1
Constitution
ratified
on
November
2,
2010,
which
created
a
2
natural
resources
and
outdoor
recreation
trust
fund
(fund)
3
and
dedicated
a
portion
of
state
revenues
to
the
fund
for
4
the
purposes
of
protecting
and
enhancing
water
quality
and
5
natural
areas
in
the
state
including
parks,
trails,
and
fish
6
and
wildlife
habitat,
and
conserving
agricultural
soils
in
7
the
state
(Article
VII,
section
10).
The
fund
is
codified
in
8
Code
section
461.31.
Pursuant
to
the
amendment,
the
amount
9
credited
to
the
fund
will
be
equal
to
the
amount
generated
10
by
an
increase
in
the
state
sales
tax
rate
occurring
after
11
the
effective
date
of
the
constitutional
amendment,
but
shall
12
not
exceed
the
amount
that
a
state
sales
tax
rate
of
0.375
13
percent
would
generate.
The
state
sales
tax
rate
has
not
14
been
increased
since
the
effective
date
of
the
constitutional
15
amendment,
so
no
amounts
have
been
credited
to
the
fund.
The
16
division
increases
from
6
percent
to
6.375
percent
the
state
17
sales
tax
rate
and
the
state
use
tax
rate,
and
provides
for
18
the
transfer
of
sales
tax
revenues
to
the
fund.
The
division
19
also
amends
the
transfer
of
use
tax
revenues
to
the
secure
20
an
advanced
vision
for
education
fund
(SAVE)
in
Code
section
21
423F.2
from
1/6th
(approximately
16.66
percent)
of
the
revenues
22
to
15.6863
percent
of
the
revenues
to
ensure
that
SAVE
receives
23
approximately
the
same
proportion
of
the
total
use
tax
revenue
24
as
it
did
prior
to
the
use
tax
rate
increase
provided
in
the
25
division.
26
The
division
takes
effect
July
1,
2015.
27
DIVISION
II
——
INDIVIDUAL
INCOME
TAXES.
Division
II
relates
28
to
the
individual
income
by
increasing
the
personal
exemption
29
credit
and
by
making
the
credit
refundable.
Under
current
30
law,
the
personal
exemption
credit,
which
is
a
composite
of
31
five
separate
credits,
is
nonrefundable
and
may
not
exceed
32
the
computed
tax.
The
division
increases
from
$40
to
$95
the
33
personal
exemption
credit
for
an
estate
or
trust,
a
single
34
individual,
or
a
married
person
filing
a
separate
return;
35
-6-
LSB
5249YH
(9)
85
mm/sc
6/
7
H.F.
2470
increases
from
$80
to
$190
the
personal
exemption
credit
for
a
1
head
of
household,
or
a
husband
and
wife
filing
a
joint
return;
2
and
increases
from
$40
to
$70
the
additional
exemption
credit
3
for
each
dependent
of
the
taxpayer.
The
division
makes
these
4
credits,
as
well
as
the
existing
additional
exemption
credits
5
of
$20
for
an
individual
who
is
at
least
65
years
of
age
and
6
$20
for
a
blind
individual,
refundable
to
the
extent
they
7
exceed
the
tax
remaining
after
subtracting
all
refundable
and
8
nonrefundable
credits
except
the
credits
for
withheld
tax
and
9
estimated
tax
paid.
However,
for
a
nonresident
or
part-year
10
resident,
the
amount
of
the
credit
in
excess
of
the
tax
11
liability
that
shall
be
refunded
is
in
the
proportion
that
the
12
taxpayer’s
net
income
allocated
to
Iowa
bears
to
the
taxpayer’s
13
total
net
income,
under
rules
to
be
prescribed
by
the
director
14
of
revenue.
15
The
division
takes
effect
January
1,
2015,
and
applies
to
tax
16
years
beginning
on
or
after
that
date.
17
-7-
LSB
5249YH
(9)
85
mm/sc
7/
7
