Bill Text: IA HF2641 | 2019-2020 | 88th General Assembly | Enrolled
Bill Title: A bill for an act relating to state taxation and related laws of the state, including the administration by the department of revenue of certain tax credits and refunds, income taxes, moneys and credits taxes, sales and use taxes, partnership and pass-through entity audits, and by modifying provisions relating to the reinstatement of business entities, the assessment and valuation of property, the Iowa reinvestment Act, short-term rentals, special registration plates, and animals and food, and providing penalties, and including effective date and retroactive applicability provisions. (Formerly HSB 696.) Effective date: 06/29/2020, 07/01/2020. Applicability date: 03/23/2020, 01/01/2019, 07/01/2005, 01/01/2022, 05/30/2014, 06/10/2020, 03/27/2020, 01/01/2020, 07/01/2020.
Spectrum: Committee Bill
Status: (Passed) 2020-06-29 - Signed by Governor. H.J. 792. [HF2641 Detail]
Download: Iowa-2019-HF2641-Enrolled.html
House
File
2641
-
Enrolled
House
File
2641
AN
ACT
RELATING
TO
STATE
TAXATION
AND
RELATED
LAWS
OF
THE
STATE,
INCLUDING
THE
ADMINISTRATION
BY
THE
DEPARTMENT
OF
REVENUE
OF
CERTAIN
TAX
CREDITS
AND
REFUNDS,
INCOME
TAXES,
MONEYS
AND
CREDITS
TAXES,
SALES
AND
USE
TAXES,
PARTNERSHIP
AND
PASS-THROUGH
ENTITY
AUDITS,
AND
BY
MODIFYING
PROVISIONS
RELATING
TO
THE
REINSTATEMENT
OF
BUSINESS
ENTITIES,
THE
ASSESSMENT
AND
VALUATION
OF
PROPERTY,
THE
IOWA
REINVESTMENT
ACT,
SHORT-TERM
RENTALS,
SPECIAL
REGISTRATION
PLATES,
AND
ANIMALS
AND
FOOD,
AND
PROVIDING
PENALTIES,
AND
INCLUDING
EFFECTIVE
DATE
AND
RETROACTIVE
APPLICABILITY
PROVISIONS.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
DIVISION
I
DEPARTMENT
OF
REVENUE
ADMINISTRATION
AND
PENALTY
PROVISIONS
Section
1.
Section
421.6,
Code
2020,
is
amended
to
read
as
follows:
421.6
Definition
of
return.
For
purposes
of
this
title
,
unless
the
context
otherwise
requires,
“return”
means
any
tax
or
information
return,
amended
return,
declaration
of
estimated
tax,
or
claim
for
refund
that
is
required
by,
provided
for,
or
permitted
under,
the
provisions
of
this
title
or
section
533.329,
and
which
is
filed
with
the
department
by,
on
behalf
of,
or
with
respect
to
any
person.
“Return”
includes
any
amendment
or
supplement
to
these
items,
including
supporting
schedules,
attachments,
or
lists
which
are
supplemental
to
or
part
of
the
filed
return.
House
File
2641,
p.
2
Sec.
2.
Section
421.17,
Code
2020,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
36.
To
enter
into
an
agreement
pursuant
to
chapter
28E
with
the
state
fair
organized
under
chapter
173
or
with
a
fair
defined
in
section
174.1,
to
collect
and
remit
taxes
and
fees
from
sellers
making
sales
at
retail
on
property
owned,
controlled,
or
operated
by
a
fair
or
through
events
conducted
by
a
fair.
Sec.
3.
Section
421.27,
subsection
1,
Code
2020,
is
amended
to
read
as
follows:
1.
Failure
to
timely
file
a
return
or
deposit
form.
a.
If
a
person
fails
to
file
with
the
department
on
or
before
the
due
date
a
return
or
deposit
form
there
shall
be
added
to
the
tax
shown
due
or
required
to
be
shown
due
a
penalty
of
ten
percent
of
the
tax
shown
due
or
required
to
be
shown
due.
b.
In
the
case
of
a
specified
business
with
no
tax
shown
due
or
required
to
be
shown
due
that
fails
to
timely
file
an
income
return,
the
specified
business
shall
pay
the
greater
of
the
following
penalty
amounts:
(1)
Two
hundred
dollars.
(2)
An
amount
equal
to
ten
percent
of
the
imputed
Iowa
liability
of
the
specified
business,
not
to
exceed
twenty-five
thousand
dollars.
c.
The
penalty,
if
assessed
pursuant
to
paragraph
“a”
or
“b”
,
shall
be
waived
by
the
department
upon
a
showing
of
any
of
the
following
conditions:
a.
(1)
At
An
amount
of
tax
greater
than
zero
is
required
to
be
shown
due
and
at
least
ninety
percent
of
the
tax
required
to
be
shown
due
has
been
paid
by
the
due
date
of
the
tax.
b.
(2)
Those
taxpayers
who
are
required
to
file
quarterly
returns,
or
monthly
or
semimonthly
deposit
forms
may
have
one
late
return
or
deposit
form
within
a
three-year
period.
The
use
of
any
other
penalty
exception
will
not
count
as
a
late
return
or
deposit
form
for
purposes
of
this
exception.
c.
(3)
The
death
of
a
taxpayer,
death
of
a
member
of
the
immediate
family
of
the
taxpayer,
or
death
of
the
person
directly
responsible
for
filing
the
return
and
paying
the
tax,
when
the
death
interferes
with
timely
filing.
d.
(4)
The
onset
of
serious,
long-term
illness
or
House
File
2641,
p.
3
hospitalization
of
the
taxpayer,
of
a
member
of
the
immediate
family
of
the
taxpayer,
or
of
the
person
directly
responsible
for
filing
the
return
and
paying
the
tax.
e.
(5)
Destruction
of
records
by
fire,
flood,
or
other
act
of
God.
f.
(6)
The
taxpayer
presents
proof
that
the
taxpayer
relied
upon
applicable,
documented,
written
advice
specifically
made
to
the
taxpayer,
to
the
taxpayer’s
preparer,
or
to
an
association
representative
of
the
taxpayer
from
the
department,
state
department
of
transportation,
county
treasurer,
or
federal
internal
revenue
service,
whichever
is
appropriate,
that
has
not
been
superseded
by
a
court
decision,
ruling
by
a
quasi-judicial
body,
or
the
adoption,
amendment,
or
repeal
of
a
rule
or
law.
g.
(7)
Reliance
upon
results
in
a
previous
audit
was
a
direct
cause
for
the
failure
to
file
where
the
previous
audit
expressly
and
clearly
addressed
the
issue
and
the
previous
audit
results
have
not
been
superseded
by
a
court
decision,
or
the
adoption,
amendment,
or
repeal
of
a
rule
or
law.
h.
(8)
Under
rules
prescribed
by
the
director,
the
taxpayer
presents
documented
proof
of
substantial
authority
to
rely
upon
a
particular
position
or
upon
proof
that
all
facts
and
circumstances
are
disclosed
on
a
return
or
deposit
form.
i.
(9)
The
return,
deposit
form,
or
payment
is
timely,
but
erroneously,
mailed
with
adequate
postage
to
the
internal
revenue
service,
another
state
agency,
or
a
local
government
agency
and
the
taxpayer
provides
proof
of
timely
mailing
with
adequate
postage.
j.
(10)
The
tax
has
been
paid
by
the
wrong
licensee
and
the
payments
were
timely
remitted
to
the
department
for
one
or
more
tax
periods
prior
to
notification
by
the
department.
k.
(11)
The
failure
to
file
was
discovered
through
a
sanctioned
self-audit
program
conducted
by
the
department.
l.
(12)
If
the
availability
of
funds
in
payment
of
tax
required
to
be
made
through
electronic
funds
transfer
is
delayed
and
the
delay
of
availability
is
due
to
reasons
beyond
the
control
of
the
taxpayer.
“Electronic
funds
transfer”
means
any
transfer
of
funds,
other
than
a
transaction
originated
by
check,
draft,
or
similar
paper
instrument,
that
is
House
File
2641,
p.
4
initiated
through
an
electronic
terminal
telephone,
computer,
magnetic
tape,
or
similar
device
for
the
purpose
of
ordering,
instructing,
or
authorizing
a
financial
institution
to
debit
or
credit
an
account.
m.
(13)
The
failure
to
file
a
timely
inheritance
tax
return
resulting
solely
from
a
disclaimer
that
required
the
personal
representative
to
file
an
inheritance
tax
return.
The
penalty
shall
be
waived
if
such
return
is
filed
and
any
tax
due
is
paid
within
the
later
of
nine
months
from
the
date
of
death
or
sixty
days
from
the
delivery
or
filing
of
the
disclaimer
pursuant
to
section
633E.12
.
n.
(14)
That
an
Iowa
inheritance
tax
return
is
filed
for
an
estate
within
the
later
of
nine
months
from
the
date
of
death
or
sixty
days
from
the
filing
of
a
disclaimer
by
the
beneficiary
of
the
estate
refusing
to
take
the
property
or
right
or
interest
in
the
property.
Sec.
4.
Section
421.27,
subsections
4
and
6,
Code
2020,
are
amended
to
read
as
follows:
4.
Willful
failure
to
file
or
deposit.
a.
(1)
In
case
of
willful
failure
to
file
a
return
or
deposit
form
with
the
intent
to
evade
tax
or
a
filing
requirement
,
or
in
case
of
willfully
filing
a
false
return
or
deposit
form
with
the
intent
to
evade
tax,
in
lieu
of
the
penalties
otherwise
provided
in
this
section
,
a
penalty
of
seventy-five
percent
shall
be
added
to
the
amount
shown
due
or
required
to
be
shown
as
tax
on
the
return
or
deposit
form.
(2)
In
case
of
a
willful
failure
by
a
specified
business
to
file
an
income
return
with
no
tax
shown
due
or
required
to
be
shown
due
with
intent
to
evade
a
filing
requirement,
or
in
case
of
willfully
filing
a
false
income
return
with
no
tax
shown
due
or
required
to
be
shown
due
with
the
intent
to
evade
reporting
of
Iowa-source
income,
the
penalty
imposed
shall
be
the
greater
of
the
following
amounts:
(a)
One
thousand
five
hundred
dollars.
(b)
An
amount
equal
to
seventy-five
percent
of
the
imputed
Iowa
liability
of
the
specified
business.
(3)
If
penalties
are
applicable
for
failure
to
file
a
return
or
deposit
form
and
failure
to
pay
the
tax
shown
due
or
required
to
be
shown
due
on
the
return
or
deposit
form,
the
House
File
2641,
p.
5
penalty
provision
for
failure
to
file
shall
be
in
lieu
of
the
penalty
provisions
for
failure
to
pay
the
tax
shown
due
or
required
to
be
shown
due
on
the
return
or
deposit
form,
except
in
the
case
of
willful
failure
to
file
a
return
or
deposit
form
or
willfully
filing
a
false
return
or
deposit
form
with
intent
to
evade
tax.
b.
The
penalties
imposed
under
this
subsection
are
not
subject
to
waiver.
6.
Improper
receipt
of
payments
Liability
——
fraudulent
practice
.
A
person
who
makes
an
erroneous
application
for
refund,
credit,
reimbursement,
rebate,
or
other
payment
shall
be
liable
for
any
overpayment
received
or
tax
liability
reduced
plus
interest
at
the
rate
in
effect
under
section
421.7
.
a.
In
addition,
a
person
who
willfully
commits
a
fraudulent
practice
and
is
liable
for
a
penalty
equal
to
seventy-five
percent
of
the
refund,
credit,
exemption,
reimbursement,
rebate,
or
other
payment
or
benefit
being
claimed
if
the
person
does
any
of
the
following:
(1)
Willfully
makes
a
false
or
frivolous
application
for
refund,
credit
,
exemption
,
reimbursement,
rebate,
or
other
payment
or
benefit
with
intent
to
evade
tax
or
with
intent
to
receive
a
refund,
credit,
exemption,
reimbursement,
rebate,
or
other
payment
or
benefit,
to
which
the
person
is
not
entitled
is
guilty
of
a
fraudulent
practice
and
is
liable
for
a
penalty
equal
to
seventy-five
percent
of
the
refund,
credit,
reimbursement,
rebate,
or
other
payment
being
claimed
.
(2)
Willfully
submits
any
false
information,
document,
or
document
containing
false
information
in
support
of
an
application
for
refund,
credit,
exemption,
reimbursement,
rebate,
or
other
payment
or
benefit
with
the
intent
to
evade
tax.
(3)
Willfully
submits
with
any
false
information,
document,
or
document
containing
false
information
in
support
of
an
application
for
refund
with
the
intent
to
receive
a
refund,
credit,
exemption,
reimbursement,
rebate,
or
other
payment
benefit,
to
which
the
person
is
not
entitled.
b.
Payments,
penalties,
and
interest
due
under
this
subsection
may
be
collected
and
enforced
in
the
same
manner
as
the
tax
imposed.
House
File
2641,
p.
6
Sec.
5.
Section
421.27,
Code
2020,
is
amended
by
adding
the
following
new
subsections:
NEW
SUBSECTION
.
8.
Definitions.
As
used
in
this
section:
a.
“Imputed
Iowa
liability”
means
any
of
the
following:
(1)
In
the
case
of
corporations
other
than
corporations
described
in
section
422.34
or
section
422.36,
subsection
5,
the
corporation’s
Iowa
net
income
after
the
application
of
the
Iowa
business
activity
ratio,
if
applicable,
multiplied
by
the
top
income
tax
rate
imposed
under
section
422.33
for
the
tax
year.
(2)
In
the
case
of
financial
institutions
as
defined
in
section
422.61,
the
financial
institution’s
Iowa
net
income
after
the
application
of
the
Iowa
business
activity
ratio,
if
applicable,
multiplied
by
the
franchise
tax
rate
imposed
under
section
422.63
for
the
tax
year.
(3)
In
this
case
of
all
other
entities,
including
corporations
described
in
section
422.36,
subsection
5,
and
all
other
entities
required
to
file
an
information
return
under
section
422.15,
subsection
2,
the
entity’s
Iowa
net
income
after
the
application
of
the
Iowa
business
activity
ratio,
if
applicable,
multiplied
by
the
top
income
tax
rate
imposed
under
section
422.5A
for
the
tax
year.
b.
“Income
return”
means
an
income
tax
return
or
information
return
required
under
section
422.15,
subsection
2,
or
section
422.36,
422.37,
or
422.62.
c.
“Specified
business”
means
a
partnership
or
other
entity
required
to
file
an
information
return
under
section
422.15,
subsection
2,
a
corporation
required
to
file
a
return
under
section
422.36
or
422.37,
or
a
financial
institution
required
to
file
a
return
under
section
422.62.
NEW
SUBSECTION
.
9.
Additional
penalty.
In
addition
to
the
penalties
imposed
by
this
section,
if
a
taxpayer
fails
to
file
a
return
within
ninety
days
of
written
notice
by
the
department
that
the
taxpayer
is
required
to
do
so,
there
shall
be
added
to
the
amount
shown
due
or
required
to
be
shown
due
a
penalty
in
the
amount
of
one
thousand
dollars.
Sec.
6.
NEW
SECTION
.
421.27A
Perjury.
1.
For
purposes
of
this
title,
a
form,
application,
or
any
other
documentation
required
or
requested
by
the
department
House
File
2641,
p.
7
shall
be
required
to
be
certified
under
penalty
of
perjury
that
the
information
contained
in
the
form,
application,
or
other
documentation
is
true
and
correct.
2.
A
person
commits
a
class
“D”
felony
under
any
of
the
following
circumstances:
a.
The
person
makes
a
form,
application,
or
other
document
containing
false
information
in
support
of
an
application
for
refund,
credit,
exemption,
reimbursement,
rebate,
or
other
payment
or
benefit
with
intent
to
evade
tax.
b.
The
person
makes
a
form,
application,
or
other
document
containing
false
information
with
intent
to
unlawfully
receive
a
refund,
credit,
exemption,
reimbursement,
rebate,
or
other
payment
or
benefit,
to
which
the
person
is
not
entitled.
c.
The
person
knowingly
makes
any
false
affidavit.
d.
The
person
knowingly
swears
or
affirms
falsely
to
any
matter
or
thing
required
by
the
terms
of
this
title
to
be
sworn
to
or
affirmed.
Sec.
7.
NEW
SECTION
.
421.59
Power
of
attorney
——
authority
to
act
on
behalf
of
taxpayer.
1.
a.
A
taxpayer
may
authorize
an
individual
to
act
on
behalf
of
the
taxpayer
by
filing
a
power
of
attorney
with
the
department,
on
a
form
prescribed
by
the
department.
b.
A
taxpayer
may
at
any
time
revoke
a
power
of
attorney
filed
with
the
department
pursuant
to
subsection
1.
Upon
processing
of
the
taxpayer’s
revocation
of
a
power
of
attorney,
the
department
shall
cease
honoring
the
power
of
attorney.
2.
The
department
may
authorize
the
following
persons
to
act
and
receive
information
on
behalf
of
and
exercise
all
of
the
rights
of
a
taxpayer,
regardless
of
whether
a
power
of
attorney
has
been
filed
pursuant
to
subsection
1:
a.
A
guardian,
conservator,
or
custodian
appointed
by
a
court,
if
a
taxpayer
has
been
deemed
legally
incompetent
by
a
court.
The
authority
of
the
appointee
to
act
on
behalf
of
the
taxpayer
shall
be
limited
to
the
extent
specifically
stated
in
the
order
of
appointment.
(1)
Upon
request,
a
guardian,
conservator,
or
custodian
of
a
taxpayer
shall
submit
to
the
department
a
copy
of
the
court
order
appointing
the
guardian,
conservator,
or
custodian.
(2)
The
department
may
petition
the
court
that
appointed
the
House
File
2641,
p.
8
guardian,
conservator,
or
custodian
to
verify
the
appointment
or
to
determine
the
scope
of
the
appointment.
b.
A
receiver
appointed
pursuant
to
chapter
680.
An
appointed
receiver
shall
be
limited
to
act
on
behalf
of
the
taxpayer
by
the
authority
stated
in
the
order
of
appointment.
(1)
Upon
the
request
of
the
department,
a
receiver
shall
submit
to
the
department
a
copy
of
the
court
order
appointing
the
receiver.
(2)
The
department
may
petition
the
court
that
appointed
the
receiver
to
verify
the
appointment
or
to
determine
the
scope
of
the
appointment.
c.
An
individual
who
has
been
named
as
an
authorized
representative
on
a
fiduciary
return
of
income
filed
under
section
422.14
or
a
tax
return
filed
under
chapter
450.
d.
(1)
An
individual
holding
the
following
title
or
position
within
a
corporation,
association,
partnership,
or
other
business
entity:
(a)
A
president
or
chief
executive
officer,
or
any
other
officer
of
the
corporation
or
association
if
the
president
or
chief
executive
officer
certifies
that
the
officer
has
the
authority
to
legally
bind
the
corporation
or
association.
(b)
A
designated
partner
duly
authorized
to
act
on
behalf
of
the
partnership.
(c)
A
person
authorized
to
act
on
behalf
of
a
limited
liability
company
in
tax
matters
pursuant
to
a
valid
statement
of
authority.
(2)
An
individual
seeking
to
act
on
behalf
of
a
taxpayer
pursuant
to
this
paragraph
shall
file
an
affidavit
with
the
department
attesting
to
the
identity
and
qualifications
of
the
individual
and
any
necessary
certifications
required
under
this
paragraph.
The
department
may
require
any
documents
or
other
evidence
to
demonstrate
the
individual
has
authority
to
act
on
behalf
of
the
taxpayer
before
the
department.
e.
A
licensed
attorney
who
has
appeared
on
behalf
of
the
taxpayer
or
the
taxpayer’s
estate
in
a
court
proceeding.
Authorization
under
this
paragraph
is
limited
to
those
matters
within
the
scope
of
the
representation.
f.
A
parent
or
guardian
of
a
taxpayer
who
has
not
reached
the
age
of
majority
where
the
parent
or
guardian
has
signed
the
House
File
2641,
p.
9
taxpayer’s
return
on
behalf
of
the
taxpayer.
Authorization
under
this
paragraph
is
limited
to
those
matters
relating
to
the
return
signed
by
the
parent
or
guardian.
Authorization
under
this
paragraph
automatically
terminates
when
the
taxpayer
reaches
the
age
of
majority
pursuant
to
section
599.1.
3.
a.
In
lieu
of
executing
a
power
of
attorney
pursuant
to
subsection
1,
the
department
may
enter
into
a
memorandum
of
understanding
with
the
taxpayer
for
each
employee,
officer,
or
member
of
a
third-party
entity
engaged
with
or
otherwise
hired
by
a
taxpayer
to
manage
the
tax
matters
of
the
taxpayer,
to
permit
the
disclosure
of
confidential
tax
information
to
the
third-party
entity
and
the
authority
to
act
on
behalf
of
the
taxpayer.
The
memorandum
of
understanding
shall
adhere
to
requirements
as
established
by
the
director.
b.
The
memorandum
of
understanding
shall
be
signed
by
the
director,
the
taxpayer,
and
the
third-party
entity
or
an
authorized
representative
of
the
third-party
entity.
c.
At
any
time,
a
taxpayer
may
unilaterally
revoke
a
memorandum
of
understanding
entered
into
pursuant
to
this
subsection
by
filing
a
notice
of
revocation
with
the
department.
Upon
the
filing
of
such
a
revocation
by
the
taxpayer,
the
department
shall
cease
honoring
the
memorandum
of
understanding.
4.
The
department
shall
adopt
rules
pursuant
to
chapter
17A
to
administer
this
section.
Sec.
8.
Section
421.60,
subsection
2,
paragraph
a,
subparagraph
(2),
Code
2020,
is
amended
to
read
as
follows:
(2)
The
statement
prepared
in
accordance
with
this
paragraph
shall
be
available
on
the
department’s
internet
site.
The
internet
site
for
this
information
shall
be
distributed
by
the
department
to
all
taxpayers
at
the
first
contact
by
the
department
with
respect
to
the
determination
or
collection
of
any
tax,
except
in
the
case
of
simply
providing
tax
forms.
Sec.
9.
Section
421.60,
Code
2020,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
11.
Electronic
communication.
Notwithstanding
any
provision
of
the
law
to
the
contrary,
for
purposes
of
this
title
and
sections
321.105A
and
533.329,
a
taxpayer
may
elect
to
receive
any
notices,
correspondence,
House
File
2641,
p.
10
or
other
communication
electronically
that
the
department
is
required
to
send
by
regular
mail.
The
director
may
establish
procedures
and
limitations
for
obtaining
this
election
from
the
taxpayer.
Sec.
10.
Section
421.62,
subsection
1,
Code
2020,
is
amended
by
adding
the
following
new
paragraph:
NEW
PARAGRAPH
.
0b.
“Income
tax
return
or
claim
for
refund”
means
any
tax
return
or
claim
for
refund
under
chapter
422,
excluding
withholding
returns
under
section
422.16.
Sec.
11.
Section
421.62,
subsection
1,
paragraph
c,
subparagraph
(1),
Code
2020,
is
amended
to
read
as
follows:
(1)
“Tax
return
preparer”
means
any
individual
who,
for
a
fee
or
other
consideration,
prepares
ten
or
more
income
tax
returns
or
claims
for
refund
under
chapter
422
during
a
calendar
year,
or
who
assumes
final
responsibility
for
completed
work
on
such
income
tax
returns
or
claims
for
refund
under
chapter
422
on
which
preliminary
work
has
been
done
by
another
individual.
Sec.
12.
Section
421.62,
subsection
2,
paragraph
a,
Code
2020,
is
amended
to
read
as
follows:
a.
On
or
after
January
1,
2020,
a
tax
return
preparer
is
required
to
include
the
tax
return
preparer’s
PTIN
on
any
income
tax
return
or
claim
for
refund
prepared
by
the
tax
return
preparer
and
filed
under
chapter
422
with
the
department
.
Sec.
13.
Section
421.64,
subsection
1,
Code
2020,
is
amended
to
read
as
follows:
1.
For
purposes
of
this
section
,
“tax
return
preparer”
means
the
same
as
defined
in
section
421.61
421.62
.
Sec.
14.
Section
422.20,
subsections
1
and
2,
Code
2020,
are
amended
to
read
as
follows:
1.
It
shall
be
unlawful
for
any
present
or
former
officer
or
employee
of
the
state
to
willfully
or
recklessly
divulge
or
to
make
known
in
any
manner
whatever
not
provided
by
law
to
any
person
the
amount
or
source
of
income,
profits,
losses,
expenditures,
or
any
particular
thereof,
set
forth
or
disclosed
in
any
income
return,
or
to
permit
any
income
return
or
copy
thereof
or
any
book
containing
any
abstract
or
particulars
thereof
to
be
seen
or
examined
by
any
person
except
as
provided
House
File
2641,
p.
11
by
law;
and
it
shall
be
unlawful
for
any
person
to
willfully
or
recklessly
print
or
publish
in
any
manner
whatever
not
provided
by
law
any
income
return,
or
any
part
thereof
or
source
of
income,
profits,
losses,
or
expenditures
appearing
in
any
income
return;
and
any
person
committing
an
offense
against
the
foregoing
provision
shall
be
guilty
of
a
serious
misdemeanor.
If
the
offender
is
an
officer
or
employee
of
the
state,
such
person
shall
also
be
dismissed
from
office
or
discharged
from
employment.
Nothing
herein
shall
prohibit
turning
over
to
duly
authorized
officers
of
the
United
States
or
tax
officials
of
other
states
state
information
and
income
returns
pursuant
to
agreement
between
the
director
and
the
secretary
of
the
treasury
of
the
United
States
or
the
secretary’s
delegate
or
pursuant
to
a
reciprocal
agreement
with
another
state.
2.
It
is
unlawful
for
an
officer,
employee,
or
agent,
or
former
officer,
employee,
or
agent
of
the
state
to
willfully
or
recklessly
disclose
to
any
person,
except
as
authorized
in
subsection
1
of
this
section
,
any
federal
tax
return
or
return
information
as
defined
in
section
6103(b)
of
the
Internal
Revenue
Code.
It
is
unlawful
for
a
person
to
whom
any
federal
tax
return
or
return
information,
as
defined
in
section
6103(b)
of
the
Internal
Revenue
Code,
is
disclosed
in
a
manner
unauthorized
by
subsection
1
of
this
section
to
thereafter
willfully
or
recklessly
print
or
publish
in
any
manner
not
provided
by
law
any
such
return
or
return
information.
A
person
violating
this
provision
is
guilty
of
a
serious
misdemeanor.
Sec.
15.
Section
422.20,
subsection
3,
paragraph
a,
Code
2020,
is
amended
to
read
as
follows:
a.
Unless
otherwise
expressly
permitted
by
section
8A.504
,
section
8G.4
,
section
11.41
,
section
96.11,
subsection
6
,
section
421.17,
subsections
22,
23,
and
26
,
section
421.17,
subsection
27
,
paragraph
“k”
,
section
421.17,
subsection
31
,
section
252B.9
,
section
321.40,
subsection
6
,
sections
321.120
,
421.19
,
421.28
,
421.59,
422.72
,
and
452A.63
,
this
section
,
or
another
provision
of
law,
a
tax
return,
return
information,
or
investigative
or
audit
information
shall
not
be
divulged
to
any
person
or
entity,
other
than
the
taxpayer,
the
department,
or
internal
revenue
service
for
use
in
a
matter
unrelated
to
tax
House
File
2641,
p.
12
administration.
Sec.
16.
Section
422.20,
Code
2020,
is
amended
by
adding
the
following
new
subsections:
NEW
SUBSECTION
.
3A.
The
director
may
disclose
the
tax
return
of
a
partnership,
limited
liability
company,
or
S
corporation,
any
such
return
information,
or
any
investigative
information
related
to
the
return,
to
any
person
who
was
a
partner,
shareholder,
or
member
of
such
an
entity
during
any
part
of
the
period
covered
by
the
return.
NEW
SUBSECTION
.
3B.
a.
Prior
to
being
made
available
for
public
inspection,
the
department
shall
redact
from
the
record
in
an
appeal
or
contested
case
the
following
information
from
any
pleading,
exhibit,
attachment,
motion,
written
evidence,
final
order,
decision,
or
opinion:
(1)
A
financial
account
number.
(2)
An
account
number
generated
by
the
department
to
identify
an
audit
or
examination.
(3)
A
social
security
number.
(4)
A
federal
employer
identification
number.
(5)
The
name
of
a
minor.
(6)
A
medical
record
or
other
medical
information.
b.
Upon
a
motion
filed
by
the
taxpayer,
the
department
may
redact
from
the
record
in
an
appeal
or
contested
case
any
other
information
from
a
pleading,
exhibit,
attachment,
motion,
or
written
evidence,
if
the
taxpayer
proves
by
clear
and
convincing
evidence
that
the
release
of
such
information
would
disclose
a
trade
secret
or
be
a
clear,
unwarranted
invasion
of
personal
privacy.
c.
Notwithstanding
paragraph
“a”
,
when
making
final
orders,
decisions,
or
opinions
available
for
public
inspection,
the
department
may
disclose
the
items
in
paragraph
“a”
if
the
department
determines
such
information
is
necessary
to
the
resolution
or
decision
of
the
appeal
or
case.
d.
Except
as
described
in
paragraphs
“a”
and
“b”
,
all
information
contained
in
a
pleading,
exhibit,
attachment,
motion,
written
evidence,
final
order,
decision,
opinion,
and
the
record
in
an
appeal
or
contested
case
is
subject
to
examination
to
the
extent
provided
by
chapter
22.
Sec.
17.
Section
422.25,
subsection
1,
Code
2020,
is
amended
House
File
2641,
p.
13
by
adding
the
following
new
paragraph:
NEW
PARAGRAPH
.
c.
The
period
of
examination
and
determination
is
unlimited
under
this
title
in
the
case
of
any
action
by
the
department
to
recover
or
rescind
any
tax
expenditure
as
defined
by
section
2.48,
subsection
1,
or
any
other
incentive
or
assistance,
due
to
a
failure
to
meet
or
maintain
the
requirements
of
a
program
administered
by
the
economic
development
authority.
Sec.
18.
Section
422.69,
subsection
1,
Code
2020,
is
amended
to
read
as
follows:
1.
All
fees,
taxes,
interest,
and
penalties
imposed
under
this
chapter
shall
be
paid
to
the
department
in
the
form
of
remittances
payable
to
the
state
treasurer
department
and
the
department
shall
transmit
each
payment
daily
to
the
state
treasurer.
Sec.
19.
Section
422.72,
subsection
1,
paragraph
a,
subparagraph
(1),
Code
2020,
is
amended
to
read
as
follows:
(1)
It
is
unlawful
for
the
director,
or
any
person
having
an
administrative
duty
under
this
chapter
,
or
any
present
or
former
officer
or
other
employee
of
the
state
authorized
by
the
director
to
examine
returns,
to
willfully
or
recklessly
divulge
in
any
manner
whatever,
the
business
affairs,
operations,
or
information
obtained
by
an
investigation
under
this
chapter
of
records
and
equipment
of
any
person
visited
or
examined
in
the
discharge
of
official
duty,
or
the
amount
or
source
of
income,
profits,
losses,
expenditures
or
any
particular
thereof,
set
forth
or
disclosed
in
any
return,
or
to
willfully
or
recklessly
permit
any
return
or
copy
of
a
return
or
any
book
containing
any
abstract
or
particulars
thereof
to
be
seen
or
examined
by
any
person
except
as
provided
by
law.
Sec.
20.
Section
422.72,
Code
2020,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
7A.
a.
Prior
to
being
made
available
for
public
inspection,
the
department
shall
redact
from
the
record
in
an
appeal
or
contested
case
the
following
information
from
any
pleading,
exhibit,
attachment,
motion,
written
evidence,
final
order,
decision,
or
opinion:
(1)
A
financial
account
number.
(2)
An
account
number
generated
by
the
department
to
House
File
2641,
p.
14
identify
an
audit
or
examination.
(3)
A
social
security
number.
(4)
A
federal
employer
identification
number.
(5)
The
name
of
a
minor.
(6)
A
medical
record
or
other
medical
information.
b.
Upon
a
motion
filed
by
the
taxpayer,
the
department
may
redact
from
the
record
in
an
appeal
or
contested
case
any
other
information
from
a
pleading,
exhibit,
attachment,
motion,
or
written
evidence,
if
the
taxpayer
proves
by
clear
and
convincing
evidence
that
the
release
of
such
information
would
disclose
a
trade
secret
or
be
a
clear,
unwarranted
invasion
of
personal
privacy.
c.
Notwithstanding
paragraph
“a”
,
when
making
final
orders,
decisions,
or
opinions
available
for
public
inspection,
the
department
may
disclose
the
items
in
paragraph
“a”
if
the
department
determines
such
information
is
necessary
to
the
resolution
or
decision
of
the
appeal
or
case.
d.
Except
as
described
in
paragraphs
“a”
and
“b”
,
all
information
contained
in
a
pleading,
exhibit,
attachment,
motion,
written
evidence,
final
order,
decision,
opinion,
and
the
record
in
an
appeal
or
contested
case
is
subject
to
examination
to
the
extent
provided
by
chapter
22.
Sec.
21.
Section
423.37,
Code
2020,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
4.
The
period
of
limitation
on
examination
and
determination
is
unlimited
under
this
title
in
the
case
of
any
action
by
the
department
to
recover
or
rescind
any
tax
expenditure
as
defined
by
section
2.48,
subsection
1,
or
any
other
incentive
or
assistance,
due
to
a
failure
to
meet
or
maintain
the
requirements
of
a
program
administered
by
the
economic
development
authority.
Sec.
22.
Section
428A.1,
subsection
3,
Code
2020,
is
amended
to
read
as
follows:
3.
The
declaration
of
value
shall
state
the
full
consideration
paid
for
the
real
property
transferred.
If
agricultural
land,
as
defined
in
section
9H.1
,
is
purchased
by
a
corporation,
limited
partnership,
trust,
alien
or
nonresident
alien,
the
declaration
of
value
shall
include
the
name
and
address
of
the
buyer,
the
name
and
address
of
the
seller,
a
House
File
2641,
p.
15
legal
description
of
the
agricultural
land,
and
identify
the
buyer
as
a
corporation,
limited
partnership,
trust,
alien,
or
nonresident
alien.
The
county
recorder
shall
not
record
the
declaration
of
value,
but
shall
enter
on
the
declaration
of
value
information
the
director
of
revenue
requires
for
the
production
of
the
sales/assessment
ratio
study
and
transmit
all
declarations
of
value
to
the
city
or
county
assessor
in
whose
jurisdiction
the
property
is
located.
The
city
or
county
assessor
shall
enter
on
the
declaration
of
value
provide
the
information
the
director
of
revenue
requires
for
the
production
of
the
sales/assessment
ratio
study
and
transmit
one
copy
of
each
declaration
of
value
to
the
director
of
revenue,
at
times
as
directed
by
the
director
of
revenue.
The
assessor
shall
retain
one
copy
of
each
declaration
of
value
for
three
years
from
December
31
of
the
year
in
which
the
transfer
of
realty
for
which
the
declaration
was
filed
took
place.
The
director
of
revenue
shall,
upon
receipt
of
the
information
required
to
be
filed
under
this
chapter
by
the
city
or
county
assessor,
send
to
the
office
of
the
secretary
of
state
that
part
of
the
declaration
of
value
which
identifies
a
corporation,
limited
partnership,
trust,
alien,
or
nonresident
alien
as
a
purchaser
of
agricultural
land
as
defined
in
section
9H.1
.
Sec.
23.
Section
441.48,
Code
2020,
is
amended
to
read
as
follows:
441.48
Notice
of
adjustment.
1.
Before
the
department
of
revenue
shall
adjust
the
valuation
of
any
class
of
property
any
such
percentage,
the
department
shall
first
serve
ten
days’
notice
by
mail,
on
the
county
auditor
of
the
county
whose
valuation
is
proposed
to
be
adjusted.
The
department
shall
hold
an
adjourned
meeting
after
such
2.
If
the
county
or
assessing
jurisdiction
intends
to
protest
the
proposed
adjustment,
the
board
of
supervisors
or
city
council,
as
applicable,
shall
provide
the
department
with
notice
of
intent
to
protest
prior
to
expiration
of
the
ten
days’
notice.
3.
After
expiration
of
the
ten
days’
notice,
at
which
time
the
county
or
assessing
jurisdiction
may
appear
by
its
city
council
or
board
of
supervisors,
city
or
county
attorney,
and
House
File
2641,
p.
16
other
assessing
jurisdiction,
or
city
or
county
officials,
and
make
written
or
oral
protest
against
such
proposed
adjustment.
4.
The
protest
shall
consist
simply
of
a
statement
of
the
error,
or
errors,
complained
of
with
such
facts
as
may
lead
to
their
correction.
At
the
adjourned
meeting
5.
After
written
protest
is
received,
or
an
oral
protest
is
heard,
the
final
action
may
be
taken
in
reference
to
the
proposed
adjustment.
Sec.
24.
Section
489.706,
subsection
2,
Code
2020,
is
amended
to
read
as
follows:
2.
The
secretary
of
state
shall
refer
the
federal
tax
identification
number
contained
in
the
application
for
reinstatement
to
the
departments
department
of
revenue
and
workforce
development.
The
departments
department
of
revenue
and
workforce
development
shall
report
to
the
secretary
of
state
the
tax
status
of
the
limited
liability
company.
If
either
the
department
reports
to
the
secretary
of
state
that
a
filing
delinquency
or
liability
exists
against
the
limited
liability
company,
the
secretary
of
state
shall
not
cancel
the
declaration
of
dissolution
until
the
filing
delinquency
or
liability
is
satisfied.
Sec.
25.
Section
490.1422,
subsection
2,
paragraph
a,
Code
2020,
is
amended
to
read
as
follows:
a.
The
secretary
of
state
shall
refer
the
federal
tax
identification
number
contained
in
the
application
for
reinstatement
to
the
departments
department
of
revenue
and
workforce
development.
The
departments
department
of
revenue
and
workforce
development
shall
report
to
the
secretary
of
state
the
tax
status
of
the
corporation.
If
either
the
department
reports
to
the
secretary
of
state
that
a
filing
delinquency
or
liability
exists
against
the
corporation,
the
secretary
of
state
shall
not
cancel
the
certificate
of
dissolution
until
the
filing
delinquency
or
liability
is
satisfied.
Sec.
26.
Section
501.813,
subsection
2,
paragraph
a,
Code
2020,
is
amended
to
read
as
follows:
a.
The
secretary
of
state
shall
refer
the
federal
tax
identification
number
contained
in
the
application
for
reinstatement
to
the
departments
department
of
revenue
and
House
File
2641,
p.
17
workforce
development.
The
departments
department
of
revenue
and
workforce
development
shall
report
to
the
secretary
of
state
the
tax
status
of
the
cooperative.
If
either
the
department
reports
to
the
secretary
of
state
that
a
filing
delinquency
or
liability
exists
against
the
cooperative,
the
secretary
of
state
shall
not
cancel
the
certificate
of
dissolution
until
the
filing
delinquency
or
liability
is
satisfied.
Sec.
27.
Section
504.1423,
subsection
2,
paragraph
a,
Code
2020,
is
amended
to
read
as
follows:
a.
The
secretary
of
state
shall
refer
the
federal
tax
identification
number
contained
in
the
application
for
reinstatement
to
the
departments
department
of
revenue
and
workforce
development.
The
departments
department
of
revenue
and
workforce
development
shall
report
to
the
secretary
of
state
the
tax
status
of
the
corporation.
If
either
the
department
reports
to
the
secretary
of
state
that
a
filing
delinquency
or
liability
exists
against
the
corporation,
the
secretary
of
state
shall
not
cancel
the
certificate
of
dissolution
until
the
filing
delinquency
or
liability
is
satisfied.
Sec.
28.
Section
533.329,
Code
2020,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
03.
Returns
shall
be
in
the
form
the
director
of
revenue
prescribes,
and
shall
be
filed
with
the
department
of
revenue
on
or
before
the
last
day
of
the
fourth
month
after
the
expiration
of
the
tax
year.
The
moneys
and
credits
tax
is
due
and
payable
on
the
last
day
of
the
fourth
month
after
the
expiration
of
the
tax
year.
Sec.
29.
Section
533.329,
subsection
3,
Code
2020,
is
amended
to
read
as
follows:
3.
The
department
of
revenue
shall
administer
and
enforce
the
provisions
of
this
section
,
and
except
as
explicitly
provided
in
this
section
or
another
provision
of
law,
shall
apply
all
applicable
penalty,
interest,
and
administrative
provisions
of
chapters
421
and
422
as
nearly
as
possible
in
administering
and
enforcing
the
moneys
and
credits
tax
imposed
by
this
section
.
Sec.
30.
LEGISLATIVE
INTENT.
It
is
the
intent
of
the
House
File
2641,
p.
18
general
assembly
that
the
sections
of
this
division
amending
Code
sections
422.25
and
423.37
are
conforming
amendments
consistent
with
current
state
law,
and
that
the
amendments
do
not
change
the
application
of
current
law
but
instead
reflect
current
law
both
before
and
after
the
enactment
of
this
division
of
this
Act.
Sec.
31.
EFFECTIVE
DATE.
The
following,
being
deemed
of
immediate
importance,
take
effect
upon
enactment:
1.
The
section
of
this
division
of
this
Act
amending
section
422.25.
2.
The
section
of
this
division
of
this
Act
amending
section
423.37.
Sec.
32.
APPLICABILITY.
The
following
applies
to
any
return
for
which
a
written
notice
that
the
taxpayer
is
required
to
file
such
return
is
issued
by
the
department
on
or
after
January
1,
2022:
The
portion
of
the
section
of
this
division
of
this
Act
enacting
section
421.27,
subsection
9.
Sec.
33.
APPLICABILITY.
The
following
apply
to
tax
years
beginning
on
or
after
January
1,
2022:
1.
The
section
of
this
division
of
this
Act
amending
section
421.27,
subsection
1.
2.
The
portion
of
the
section
of
this
division
of
this
Act
amending
section
421.27,
subsection
4.
3.
The
portion
of
the
section
of
this
division
of
this
Act
enacting
section
421.27,
subsection
8.
DIVISION
II
SALES
AND
USE
TAX
Sec.
34.
Section
321G.4,
subsection
2,
Code
2020,
is
amended
to
read
as
follows:
2.
a.
The
owner
of
the
snowmobile
shall
file
an
application
for
registration
with
the
department
through
the
county
recorder
of
the
county
of
residence
in
the
manner
established
by
the
commission.
The
application
shall
be
completed
by
the
owner
and
shall
be
accompanied
by
a
fee
of
fifteen
dollars
and
a
writing
fee
as
provided
in
section
321G.27
.
A
snowmobile
shall
not
be
registered
by
the
county
recorder
until
the
county
recorder
is
presented
with
receipts,
bills
of
sale,
or
other
satisfactory
evidence
that
the
sales
or
use
tax
has
House
File
2641,
p.
19
been
paid
for
the
purchase
of
the
snowmobile
or
that
the
owner
is
exempt
from
paying
the
tax.
A
snowmobile
that
has
an
expired
registration
certificate
from
another
state
may
be
registered
in
this
state
upon
proper
application,
payment
of
all
applicable
registration
and
writing
fees,
and
payment
of
a
penalty
of
five
dollars.
b.
If
the
owner
of
the
snowmobile
is
unable
to
present
satisfactory
evidence
that
the
sales
or
use
tax
has
been
paid,
the
county
recorder
shall
collect
the
tax.
On
or
before
the
tenth
day
of
each
month,
the
county
recorder
shall
remit
to
the
department
of
revenue
the
amount
of
the
taxes
collected
during
the
preceding
month,
together
with
an
itemized
statement
on
forms
furnished
by
the
department
of
revenue
showing
the
name
of
each
taxpayer,
the
make
and
purchase
price
of
each
snowmobile,
the
amount
of
tax
paid,
and
such
other
information
as
the
department
of
revenue
requires.
Sec.
35.
Section
321I.4,
subsection
2,
Code
2020,
is
amended
to
read
as
follows:
2.
a.
The
owner
of
the
all-terrain
vehicle
shall
file
an
application
for
registration
with
the
department
through
the
county
recorder
of
the
county
of
residence,
or
in
the
case
of
a
nonresident
owner,
in
the
county
of
primary
use,
in
the
manner
established
by
the
commission.
The
application
shall
be
completed
by
the
owner
and
shall
be
accompanied
by
a
fee
of
fifteen
dollars
and
a
writing
fee
as
provided
in
section
321I.29
.
An
all-terrain
vehicle
shall
not
be
registered
by
the
county
recorder
until
the
county
recorder
is
presented
with
receipts,
bills
of
sale,
or
other
satisfactory
evidence
that
the
sales
or
use
tax
has
been
paid
for
the
purchase
of
the
all-terrain
vehicle
or
that
the
owner
is
exempt
from
paying
the
tax.
An
all-terrain
vehicle
that
has
an
expired
registration
certificate
from
another
state
may
be
registered
in
this
state
upon
proper
application,
payment
of
all
applicable
registration
and
writing
fees,
and
payment
of
a
penalty
of
five
dollars.
b.
If
the
owner
of
the
all-terrain
vehicle
is
unable
to
present
satisfactory
evidence
that
the
sales
or
use
tax
has
been
paid,
the
county
recorder
shall
collect
the
tax.
On
or
before
the
tenth
day
of
each
month,
the
county
recorder
shall
remit
to
the
department
of
revenue
the
amount
of
the
taxes
House
File
2641,
p.
20
collected
during
the
preceding
month,
together
with
an
itemized
statement
on
forms
furnished
by
the
department
of
revenue
showing
the
name
of
each
taxpayer,
the
make
and
purchase
price
of
each
all-terrain
vehicle,
the
amount
of
tax
paid,
and
such
other
information
as
the
department
of
revenue
requires.
Sec.
36.
Section
423.2,
subsection
6,
paragraph
bs,
Code
2020,
is
amended
to
read
as
follows:
bs.
Services
arising
from
or
related
to
installing,
maintaining,
servicing,
repairing,
operating,
upgrading,
or
enhancing
either
specified
digital
products
or
software
sold
as
tangible
personal
property
.
Sec.
37.
Section
423.2,
subsection
8,
paragraph
d,
subparagraph
(1),
Code
2020,
is
amended
to
read
as
follows:
(1)
The
retail
sale
of
tangible
personal
property
or
specified
digital
product
and
a
service
,
where
the
tangible
personal
property
or
specified
digital
product
is
essential
to
the
use
of
the
service,
and
is
provided
exclusively
in
connection
with
the
service,
and
the
true
object
of
the
transaction
is
the
service.
Sec.
38.
Section
423.3,
subsection
3A,
Code
2020,
is
amended
to
read
as
follows:
3A.
The
sales
price
from
the
sale
of
a
commercial
recreation
service
offering
the
opportunity
to
hunt
a
preserve
whitetail
as
defined
in
section
484C.1
if
the
sale
occurred
between
July
1,
2005,
and
December
31,
2015.
Sec.
39.
Section
423.3,
subsection
31,
unnumbered
paragraph
1,
Code
2020,
is
amended
to
read
as
follows:
The
sales
price
of
tangible
personal
property
or
specified
digital
products
sold
to
and
of
services
furnished
to
a
tribal
government
as
defined
in
216A.161,
or
the
sales
price
of
tangible
personal
property
or
specified
digital
products
sold
to
and
of
services
furnished
,
and
used
for
public
purposes
sold
to
a
tax-certifying
or
tax-levying
body
of
the
state
or
a
governmental
subdivision
of
the
state,
including
the
following:
regional
transit
systems,
as
defined
in
section
324A.1
,
;
the
state
board
of
regents
,
;
department
of
human
services
,
;
state
department
of
transportation
,
;
any
municipally
owned
solid
waste
facility
which
sells
all
or
part
of
its
processed
waste
as
fuel
to
a
municipally
owned
public
utility
,
;
and
all
House
File
2641,
p.
21
divisions,
boards,
commissions,
agencies,
or
instrumentalities
of
state,
federal,
county,
or
municipal
government
,
or
tribal
government
which
have
no
earnings
going
to
the
benefit
of
an
equity
investor
or
stockholder,
except
any
of
the
following:
Sec.
40.
Section
423.3,
subsection
80,
paragraphs
b
and
c,
Code
2020,
are
amended
to
read
as
follows:
b.
Subject
to
the
limitations
in
paragraph
“c”
,
if
a
contractor,
subcontractor,
or
builder
is
to
use
building
materials,
supplies,
and
equipment
,
or
services
in
the
performance
of
a
written
construction
contract
with
a
designated
exempt
entity,
the
person
shall
purchase
such
items
of
tangible
personal
property
or
services
without
liability
for
the
tax
if
such
property
or
services
will
be
used
in
the
performance
of
the
written
construction
contract
and
a
purchasing
agent
authorization
letter
and
an
exemption
certificate,
issued
by
the
designated
exempt
entity,
are
presented
to
the
retailer.
c.
(1)
With
regard
to
a
written
construction
contract
with
a
designated
exempt
entity
described
in
paragraph
“a”
,
subparagraph
(1),
the
sales
price
of
building
materials,
supplies,
or
equipment
,
or
services
is
exempt
from
tax
by
this
subsection
only
to
the
extent
the
building
materials,
supplies,
or
equipment
,
or
services
are
completely
consumed
in
the
performance
of
the
construction
contract
with
the
designated
exempt
entity
,
and
only
if
the
property
that
is
the
subject
of
the
construction
project
becomes
public
property
or
the
property
of
the
designated
exempt
entity
.
(2)
With
regard
to
a
written
construction
contract
with
a
designated
exempt
entity
described
in
paragraph
“a”
,
subparagraph
(2),
the
sales
price
of
building
materials,
supplies,
or
equipment
,
or
services
is
exempt
from
tax
by
this
subsection
only
to
the
extent
the
building
materials,
supplies,
or
equipment
,
or
services
are
completely
consumed
in
the
performance
of
a
construction
contract
to
construct
a
project,
as
defined
in
section
15J.2,
subsection
10
,
which
project
has
been
approved
by
the
economic
development
authority
board
in
accordance
with
chapter
15J
.
Sec.
41.
Section
423.4,
subsection
1,
Code
2020,
is
amended
to
read
as
follows:
House
File
2641,
p.
22
1.
a.
For
purposes
of
this
subsection,
a
“designated
exempt
entity”
means
any
of
the
following:
(1)
A
private
nonprofit
educational
institution
in
this
state
,
.
(2)
A
nonprofit
Iowa
affiliate
of
a
nonprofit
international
organization
whose
primary
activity
is
the
promotion
of
the
construction,
remodeling,
or
rehabilitation
of
one-family
or
two-family
dwellings
for
low-income
families
,
.
(3)
A
nonprofit
private
museum
in
this
state
,
.
(4)
A
tax-certifying
or
tax-levying
body
or
governmental
subdivision
of
the
state,
including
the
state
board
of
regents,
state
department
of
human
services,
state
department
of
transportation
,
a
.
(5)
A
municipally
owned
solid
waste
facility
which
sells
all
or
part
of
its
processed
waste
as
fuel
to
a
municipally
owned
public
utility
,
and
all
.
(6)
The
state
of
Iowa.
(7)
Any
political
subdivision
of
the
state.
(8)
All
divisions,
boards,
commissions,
agencies,
or
instrumentalities
of
state,
federal,
county,
or
municipal
government
which
do
not
have
earnings
going
to
the
benefit
of
an
equity
investor
or
stockholder
,
.
(9)
A
tribal
government
as
defined
in
section
216A.161,
and
any
instrumentalities
of
the
tribal
government
which
do
not
have
earnings
going
to
the
benefit
of
an
equity
investor
or
stockholder.
b.
A
designated
exempt
entity
may
make
application
apply
to
the
department
for
the
refund
of
the
sales
or
use
tax
upon
the
sales
price
of
all
sales
of
goods,
wares,
or
merchandise
building
materials,
supplies,
equipment
,
or
from
services
furnished
to
a
contractor,
used
in
the
fulfillment
performance
of
a
written
contract
with
the
state
of
Iowa,
any
political
subdivision
of
the
state,
or
a
division,
board,
commission,
agency,
or
instrumentality
of
the
state
or
a
political
subdivision,
a
private
nonprofit
educational
institution
in
this
state,
a
nonprofit
Iowa
affiliate
described
in
this
subsection
,
or
a
nonprofit
private
museum
in
this
state
if
the
property
becomes
an
integral
part
of
the
project
under
contract
and
at
the
completion
of
the
project
becomes
public
property,
House
File
2641,
p.
23
is
devoted
to
educational
uses,
becomes
part
of
a
low-income
one-family
or
two-family
dwelling
in
the
state,
or
becomes
a
nonprofit
private
museum;
except
goods,
wares,
or
merchandise,
designated
exempt
entity
if
all
of
the
following
apply:
(1)
The
building
materials,
supplies,
equipment,
or
services
are
completely
consumed
in
the
performance
of
a
construction
project
with
the
designated
entity.
(2)
The
property
that
is
subject
of
the
construction
project
becomes
public
property
or
the
property
of
an
exempt
entity.
(3)
The
building
materials,
supplies,
equipment,
or
services
furnished
which
are
not
used
in
the
performance
of
any
contract
in
connection
with
the
operation
of
any
municipal
utility
engaged
in
selling
gas,
electricity,
or
heat
to
the
general
public
or
in
connection
with
the
operation
of
a
municipal
pay
television
system;
and
except
goods,
wares,
and
merchandise
are
not
used
in
the
performance
of
a
contract
for
a
“project”
under
chapter
419
as
defined
in
that
chapter
other
than
goods,
wares,
or
merchandise
used
in
the
performance
of
a
contract
for
a
“project”
under
chapter
419
for
which
a
bond
issue
was
approved
by
a
municipality
prior
to
July
1,
1968,
or
for
which
the
goods,
wares,
or
merchandise
becomes
an
integral
part
of
the
project
under
contract
and
at
the
completion
of
the
project
becomes
public
property
or
is
devoted
to
educational
uses.
a.
c.
Such
A
contractor
shall
state
under
oath,
on
forms
provided
by
the
department,
the
amount
of
such
sales
of
goods,
wares,
or
merchandise,
or
services
furnished
and
used
in
the
performance
of
such
contract,
and
upon
which
sales
or
use
tax
has
been
paid,
and
shall
file
such
forms
with
the
governmental
unit,
private
nonprofit
educational
institution,
nonprofit
Iowa
affiliate,
or
nonprofit
private
museum
designated
exempt
entity
which
has
made
any
written
contract
for
performance
by
the
contractor.
The
forms
shall
be
filed
by
the
contractor
with
the
governmental
unit,
educational
institution,
nonprofit
Iowa
affiliate,
or
nonprofit
private
museum
designated
exempt
entity
before
final
settlement
is
made.
b.
d.
Such
governmental
unit,
educational
institution,
nonprofit
Iowa
affiliate,
or
nonprofit
private
museum
A
designated
exempt
entity
shall,
not
more
than
one
year
after
House
File
2641,
p.
24
the
final
settlement
has
been
made,
make
application
apply
to
the
department
for
any
refund
of
the
amount
of
the
sales
or
use
tax
which
shall
have
been
paid
upon
any
goods,
wares,
or
merchandise
building
materials,
supplies,
equipment
,
or
services
furnished,
the
application
to
be
made
in
the
manner
and
upon
forms
to
be
provided
by
the
department,
and
the
department
shall
forthwith
audit
the
claim
and,
if
approved,
issue
a
warrant
to
the
governmental
unit,
educational
institution,
nonprofit
Iowa
affiliate,
or
nonprofit
private
museum
designated
exempt
entity
in
the
amount
of
the
sales
or
use
tax
which
has
been
paid
to
the
state
of
Iowa
under
the
contract.
c.
e.
Refunds
authorized
under
this
subsection
shall
accrue
interest
in
accordance
with
section
421.60,
subsection
2
,
paragraph
“e”
.
d.
f.
Any
contractor
who
willfully
makes
a
false
report
of
tax
paid
under
the
provisions
of
this
subsection
is
guilty
of
a
simple
misdemeanor
and
in
addition
shall
be
liable
for
the
payment
of
the
tax
and
any
applicable
penalty
and
interest.
Sec.
42.
Section
423.4,
subsection
2,
paragraphs
a
and
b,
Code
2020,
are
amended
to
read
as
follows:
a.
A
contractor
awarded
a
contract
for
a
transportation
construction
project
is
considered
the
consumer
of
all
building
materials,
building
supplies,
and
equipment
,
and
services
and
shall
pay
sales
tax
to
the
supplier
or
remit
consumer
use
tax
directly
to
the
department.
b.
The
contractor
is
not
required
to
file
information
with
the
state
department
of
transportation
stating
the
amount
of
goods,
wares,
or
merchandise,
or
services
rendered,
furnished,
or
performed
and
building
materials,
supplies,
equipment,
or
services
used
in
the
performance
of
the
contract
or
the
amount
of
sales
or
use
tax
paid.
Sec.
43.
Section
423.4,
subsection
6,
paragraph
a,
subparagraph
(1),
Code
2020,
is
amended
to
read
as
follows:
(1)
The
owner
of
a
collaborative
educational
facility
in
this
state
may
make
application
to
the
department
for
the
refund
of
the
sales
or
use
tax
upon
the
sales
price
of
all
sales
of
goods,
wares,
or
merchandise
building
materials,
supplies,
equipment
,
or
from
services
furnished
to
a
contractor,
used
House
File
2641,
p.
25
in
the
fulfillment
of
a
written
construction
contract
with
the
owner
of
the
collaborative
educational
facility
for
the
original
construction,
or
additions
or
modifications
to,
a
building
or
structure
to
be
used
as
part
of
the
collaborative
educational
facility.
Sec.
44.
Section
423.4,
subsection
6,
paragraphs
b
and
c,
Code
2020,
are
amended
to
read
as
follows:
b.
Such
A
contractor
shall
state
under
oath,
on
forms
provided
by
the
department,
the
amount
of
such
sales
of
goods,
wares,
or
merchandise
building
materials,
supplies,
equipment
,
or
services
furnished
and
used
in
the
performance
of
such
contract,
and
upon
which
sales
or
use
tax
has
been
paid,
and
shall
file
such
forms
with
the
owner
of
the
collaborative
educational
facility
which
has
made
any
written
contract
for
performance
by
the
contractor.
c.
(1)
The
owner
of
the
collaborative
educational
facility
shall,
not
more
than
one
year
after
the
final
settlement
has
been
made,
make
application
to
the
department
for
any
refund
of
the
amount
of
the
sales
or
use
tax
which
shall
have
been
paid
upon
any
goods,
wares,
or
merchandise
building
materials,
supplies,
equipment
,
or
services
furnished,
the
application
to
be
made
in
the
manner
and
upon
forms
to
be
provided
by
the
department,
and
the
department
shall
forthwith
audit
the
claim
and,
if
approved,
issue
a
warrant
to
the
owner
of
the
collaborative
educational
facility
in
the
amount
of
the
sales
or
use
tax
which
has
been
paid
to
the
state
of
Iowa
under
the
contract.
(2)
Refunds
authorized
under
this
subsection
shall
accrue
interest
in
accordance
with
section
421.60,
subsection
2
,
paragraph
“e”
.
Sec.
45.
Section
423.5,
subsection
1,
paragraph
b,
Code
2020,
is
amended
by
striking
the
paragraph.
Sec.
46.
Section
423.29,
subsection
1,
Code
2020,
is
amended
to
read
as
follows:
1.
Every
seller
who
is
a
retailer
and
who
is
making
taxable
sales
of
tangible
personal
property
or
specified
digital
products
in
Iowa
or
who
is
a
retailer
maintaining
a
place
of
business
in
this
state
making
taxable
sales
of
tangible
personal
property
or
specified
digital
products
shall,
at
House
File
2641,
p.
26
the
time
of
making
the
sale,
collect
the
sales
tax.
Every
seller
who
is
a
retailer
that
is
not
otherwise
required
to
collect
sales
tax
under
the
provisions
of
this
chapter
and
who
is
selling
tangible
personal
property
or
specified
digital
products
for
use
in
Iowa
shall,
at
the
time
of
making
the
sale,
whether
within
or
without
the
state,
collect
the
use
tax.
Sellers
required
to
collect
sales
or
use
tax
shall
give
to
any
purchaser
a
receipt
for
the
tax
collected
in
the
manner
and
form
prescribed
by
the
director.
Sec.
47.
Section
423.33,
subsection
1,
Code
2020,
is
amended
to
read
as
follows:
1.
Liability
of
purchaser
for
sales
tax
and
retailer
.
a.
If
a
purchaser
fails
to
pay
sales
tax
to
the
retailer
required
to
collect
the
tax,
then
in
addition
to
all
of
the
rights,
obligations,
and
remedies
provided,
the
a
use
tax
is
payable
by
the
purchaser
directly
to
the
department,
and
sections
423.31
,
423.32
,
423.37
,
423.38
,
423.39
,
423.40
,
423.41
,
and
423.42
apply
to
the
purchaser.
b.
For
failure
to
pay
the
sales
or
use
tax
as
described
in
paragraph
“a”
,
the
retailer
and
purchaser
are
jointly
liable,
unless
the
circumstances
described
in
section
29C.24,
subsection
3,
paragraph
“a”
,
subparagraph
(2),
section
421.60,
subsection
2
,
paragraph
“m”
,
section
423.34A
,
or
section
423.45,
subsection
4
,
paragraph
“b”
or
“e”
,
or
subsection
5
,
paragraph
“c”
or
“e”
,
are
applicable.
c.
If
the
retailer
fails
to
collect
sales
tax
at
the
time
of
the
transaction,
the
retailer
shall
thereafter
remit
the
applicable
sales
tax,
or
the
purchaser
thereafter
shall
remit
the
applicable
use
tax.
If
the
purchaser
remits
all
applicable
use
tax,
the
retailer
remains
liable
for
any
local
sales
and
services
tax
under
chapter
423B
that
the
retailer
failed
to
collect.
Sec.
48.
REFUNDS
RELATED
TO
PRESERVE
WHITETAIL
DEER
HUNTING.
Refunds
of
taxes,
interest,
or
penalties
that
arise
from
claims
resulting
from
the
amendment
of
section
423.3,
subsection
3A,
for
sales
occurring
between
July
1,
2005,
and
the
effective
date
of
the
amendment
to
section
423.3,
subsection
3A,
shall
not
be
allowed,
notwithstanding
any
other
law
to
the
contrary.
House
File
2641,
p.
27
Sec.
49.
LEGISLATIVE
INTENT.
1.
It
is
the
intent
of
the
general
assembly
that
the
section
of
this
division
of
this
Act
amending
section
423.29
is
a
conforming
amendment
consistent
with
current
state
law,
and
that
the
amendment
does
not
change
the
application
of
current
law
but
instead
reflects
current
law
both
before
and
after
the
enactment
of
this
division
of
this
Act.
2.
It
is
the
intent
of
the
general
assembly
that
the
addition
of
“jointly”
in
the
section
of
this
division
of
this
Act
amending
section
423.33
is
a
conforming
amendment
consistent
with
current
state
law,
and
that
the
amendment
does
not
change
the
application
of
current
law
but
instead
reflects
current
law
both
before
and
after
the
enactment
of
this
division
of
this
Act.
Sec.
50.
EFFECTIVE
DATE.
The
following,
being
deemed
of
immediate
importance,
take
effect
upon
enactment:
1.
The
section
of
this
division
of
this
Act
amending
section
423.3,
subsection
3A.
2.
The
section
of
this
division
of
this
Act
relating
to
refunds
for
commercial
recreation
services
offering
an
opportunity
to
hunt
preserve
whitetail
deer.
Sec.
51.
RETROACTIVE
APPLICABILITY.
The
following
applies
retroactively
to
July
1,
2005:
The
section
of
this
division
of
this
Act
amending
section
423.3,
subsection
3A.
DIVISION
III
INCOME
TAX
Sec.
52.
Section
422.9,
subsection
3,
paragraph
c,
Code
2020,
is
amended
by
striking
the
paragraph
and
inserting
in
lieu
thereof
the
following:
c.
A
taxpayer
may
elect
to
waive
the
entire
carryback
period
with
respect
to
an
Iowa
net
operating
loss
for
any
taxable
year
beginning
on
or
after
January
1,
2020.
The
election
shall
be
made
in
the
manner
and
form
prescribed
by
the
department,
and
shall
be
made
by
the
due
date
for
filing
the
taxpayer’s
Iowa
return,
including
extensions
of
time.
After
the
election
is
made
for
any
taxable
year,
the
election
shall
be
irrevocable
for
such
taxable
year.
When
an
election
has
been
properly
made,
the
Iowa
net
operating
loss
shall
be
carried
forward
House
File
2641,
p.
28
twenty
taxable
years.
Sec.
53.
Section
422.9,
subsection
3,
paragraph
d,
Code
2020,
is
amended
to
read
as
follows:
d.
Notwithstanding
paragraph
“a”
,
for
a
taxpayer
who
is
engaged
in
the
trade
or
business
of
farming
,
which
means
the
same
as
a
“farming
business”
as
defined
in
section
263A(e)(4)
of
the
Internal
Revenue
Code
,
and
has
a
farming
loss
from
farming
as
defined
in
section
172(b)(1)(B)
of
the
Internal
Revenue
Code
including
modifications
prescribed
by
rule
by
the
director,
the
Iowa
farming
loss
from
the
trade
or
business
of
farming
is
a
net
operating
loss
which
may
,
at
the
time
of
the
election
of
the
taxpayer,
be
carried
back
five
taxable
years
prior
to
the
taxable
year
of
the
loss.
The
election
shall
be
made
in
the
manner
and
form
prescribed
by
the
department,
and
shall
be
made
by
the
due
date
for
filing
the
taxpayer’s
return,
including
extensions
of
time.
After
the
election
is
made
for
any
taxable
year,
the
election
shall
be
irrevocable
for
such
taxable
year.
Sec.
54.
APPLICABILITY.
This
division
of
this
Act
applies
to
tax
years
beginning
on
or
after
January
1,
2020.
DIVISION
IV
RESEARCH
ACTIVITIES
CREDIT
Sec.
55.
Section
15.335,
subsection
4,
paragraph
a,
Code
2020,
is
amended
to
read
as
follows:
a.
In
lieu
of
the
credit
amount
computed
in
subsection
2
,
an
eligible
business
may
elect
to
compute
the
credit
amount
for
qualified
research
expenses
incurred
in
this
state
in
a
manner
consistent
with
the
alternative
simplified
credit
described
in
section
41(c)(5)
41(c)(4)
of
the
Internal
Revenue
Code.
The
taxpayer
may
make
this
election
regardless
of
the
method
used
for
the
taxpayer’s
federal
income
tax.
The
election
made
under
this
paragraph
is
for
the
tax
year
and
the
taxpayer
may
use
another
or
the
same
method
for
any
subsequent
year.
Sec.
56.
Section
15.335,
subsection
4,
paragraph
b,
unnumbered
paragraph
1,
Code
2020,
is
amended
to
read
as
follows:
For
purposes
of
the
alternate
credit
computation
method
in
paragraph
“a”
,
the
credit
percentages
applicable
to
qualified
research
expenses
described
in
section
41(c)(5)(A)
41(c)(4)(A)
and
clause
(ii)
of
section
41(c)(5)(B)
41(c)(4)(B)
of
the
House
File
2641,
p.
29
Internal
Revenue
Code
are
as
follows:
Sec.
57.
Section
422.10,
subsection
1,
paragraphs
c
and
d,
Code
2020,
are
amended
to
read
as
follows:
c.
In
lieu
of
the
credit
amount
computed
in
paragraph
“b”
,
subparagraph
(1),
subparagraph
division
(a),
a
taxpayer
may
elect
to
compute
the
credit
amount
for
qualified
research
expenses
incurred
in
this
state
in
a
manner
consistent
with
the
alternative
simplified
credit
described
in
section
41(c)(5)
41(c)(4)
of
the
Internal
Revenue
Code.
The
taxpayer
may
make
this
election
regardless
of
the
method
used
for
the
taxpayer’s
federal
income
tax.
The
election
made
under
this
paragraph
is
for
the
tax
year
and
the
taxpayer
may
use
another
or
the
same
method
for
any
subsequent
year.
d.
For
purposes
of
the
alternate
credit
computation
method
in
paragraph
“c”
,
the
credit
percentages
applicable
to
qualified
research
expenses
described
in
section
41(c)(5)(A)
41(c)(4)(A)
and
clause
(ii)
of
section
41(c)(5)(B)
41(c)(4)(B)
of
the
Internal
Revenue
Code
are
four
and
fifty-five
hundredths
percent
and
one
and
ninety-five
hundredths
percent,
respectively.
Sec.
58.
Section
422.33,
subsection
5,
paragraphs
c
and
d,
Code
2020,
are
amended
to
read
as
follows:
c.
In
lieu
of
the
credit
amount
computed
in
paragraph
“a”
,
subparagraph
(1),
a
corporation
may
elect
to
compute
the
credit
amount
for
qualified
research
expenses
incurred
in
this
state
in
a
manner
consistent
with
the
alternative
simplified
credit
described
in
section
41(c)(5)
41(c)(4)
of
the
Internal
Revenue
Code.
The
taxpayer
may
make
this
election
regardless
of
the
method
used
for
the
taxpayer’s
federal
income
tax.
The
election
made
under
this
paragraph
is
for
the
tax
year
and
the
taxpayer
may
use
another
or
the
same
method
for
any
subsequent
year.
d.
For
purposes
of
the
alternate
credit
computation
method
in
paragraph
“c”
,
the
credit
percentages
applicable
to
qualified
research
expenses
described
in
section
41(c)(5)(A)
41(c)(4)(A)
and
clause
(ii)
of
section
41(c)(5)(B)
41(c)(4)(B)
of
the
Internal
Revenue
Code
are
four
and
fifty-five
hundredths
percent
and
one
and
ninety-five
hundredths
percent,
respectively.
House
File
2641,
p.
30
Sec.
59.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
Sec.
60.
RETROACTIVE
APPLICABILITY.
This
division
of
this
Act
applies
retroactively
to
January
1,
2019,
for
tax
years
beginning
on
or
after
that
date.
DIVISION
V
PARTNERSHIP
AND
PASS-THROUGH
ENTITY
AUDITS
AND
REPORTING
OF
FEDERAL
ADJUSTMENTS
Sec.
61.
Section
421.27,
subsection
2,
paragraph
c,
Code
2020,
is
amended
to
read
as
follows:
c.
(1)
The
Except
in
the
case
of
a
final
federal
partnership
adjustment
governed
by
subparagraph
(2),
the
taxpayer
provides
written
notification
to
the
department
of
a
federal
audit
while
it
is
in
progress
and
voluntarily
files
an
amended
return
which
includes
a
copy
of
the
federal
document
showing
the
final
disposition
or
final
federal
adjustments
and
pays
any
additional
Iowa
tax
due
within
sixty
one
hundred
eighty
days
of
the
final
disposition
determination
date
of
the
federal
government’s
audit.
For
purposes
of
this
subparagraph,
“final
determination
date”
means
the
same
as
defined
in
section
422.25.
(2)
(a)
In
the
case
of
a
final
federal
partnership
adjustment
arising
from
a
partnership
level
audit,
with
respect
to
the
audited
partnership
or
a
direct
partner
or
indirect
partner
of
the
audited
partnership,
the
audited
partnership,
direct
partner,
or
indirect
partner
voluntarily
and
timely
complies
with
its
reporting
and
payment
requirements
under
section
422.25A,
subsection
4
or
5.
(b)
As
used
in
this
subparagraph,
all
words
and
phrases
defined
in
section
422.25A
shall
have
the
same
meaning
given
them
by
that
section.
Sec.
62.
Section
422.7,
Code
2020,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
59.
Any
income
subtracted
from
federal
taxable
income
for
an
adjustment
year
pursuant
to
section
6225
of
the
Internal
Revenue
Code
and
the
regulations
thereunder
shall
be
added
back
in
computing
net
income
for
state
tax
purposes
for
the
adjustment
year.
Sec.
63.
Section
422.25,
subsections
1
and
2,
Code
2020,
House
File
2641,
p.
31
are
amended
by
striking
the
subsections
and
inserting
in
lieu
thereof
the
following:
1.
a.
For
purposes
of
this
subsection:
(1)
“Federal
adjustment”
means
a
change
to
an
item
or
amount
required
to
be
determined
under
the
Internal
Revenue
Code
and
the
regulations
thereunder
that
is
used
by
the
taxpayer
to
compute
state
tax
owed
whether
such
change
results
from
action
by
the
internal
revenue
service,
or
the
filing
of
a
timely
amended
federal
return
or
timely
federal
refund
claim.
A
federal
adjustment
is
positive
to
the
extent
that
it
increases
Iowa
taxable
income
as
determined
under
this
title
and
is
negative
to
the
extent
that
it
decreases
Iowa
taxable
income
as
determined
under
this
title.
(2)
“Federal
adjustments
report”
means
the
method
or
form
required
by
the
department
by
rule
to
report
final
federal
adjustments
or
final
federal
partnership
adjustments
as
defined
in
section
422.25A,
and
in
the
case
of
any
entity
taxed
as
a
partnership
or
S
corporation
for
federal
income
tax
purposes,
identifies
all
owners
that
hold
an
interest
directly
in
such
entity
and
provides
the
effect
of
the
final
federal
adjustments
on
such
owner’s
Iowa
income.
(3)
“Final
determination
date”
means
the
following:
(a)
Except
as
provided
in
subparagraph
divisions
(b)
and
(c),
for
federal
adjustments
arising
from
an
internal
revenue
service
audit
or
other
action
by
the
internal
revenue
service,
the
final
determination
date
is
the
first
day
on
which
no
federal
adjustments
arising
from
that
audit
or
other
action
remain
to
be
finally
determined,
whether
by
internal
revenue
service
decision
with
respect
to
which
all
rights
of
appeal
have
been
waived
or
exhausted,
by
agreement,
or,
if
appealed
or
contested,
by
a
final
decision
with
respect
to
which
all
rights
of
appeal
have
been
waived
or
exhausted.
For
agreements
required
to
be
signed
by
the
internal
revenue
service
and
the
taxpayer,
the
final
determination
date
is
the
date
on
which
the
last
party
signed
the
agreement.
(b)
For
federal
adjustments
arising
from
an
internal
revenue
service
audit
or
other
action
by
the
internal
revenue
service,
if
the
taxpayer
filed
as
a
member
of
a
consolidated
return
under
section
422.37,
the
final
determination
date
House
File
2641,
p.
32
is
the
first
day
on
which
no
related
federal
adjustments
arising
from
that
audit
or
other
action
remain
to
be
finally
determined,
as
described
in
subparagraph
division
(a),
for
the
entire
group.
(c)
For
federal
adjustments
arising
from
a
timely
filed
amended
federal
return
or
a
timely
filed
federal
refund
claim,
or
if
it
is
a
federal
adjustment
reported
on
a
timely
amended
federal
return
or
other
similar
report
filed
pursuant
to
section
6225(c)
of
the
Internal
Revenue
Code,
the
final
determination
date
is
the
day
on
which
the
amended
return,
refund
claim,
or
other
similar
report
was
filed.
(4)
“Final
federal
adjustment”
means
a
federal
adjustment
after
the
final
determination
date
for
that
federal
adjustment
has
passed.
b.
Within
three
years
after
the
return
is
filed
or
within
three
years
after
the
return
became
due,
including
any
extensions
of
time
for
filing,
whichever
time
is
the
later,
the
department
shall
examine
the
return
and
determine
the
tax.
However,
if
the
taxpayer
omits
from
income
an
amount
which
will,
under
the
Internal
Revenue
Code,
extend
the
statute
of
limitations
for
assessment
of
federal
tax
to
six
years
under
the
federal
law,
the
period
for
examination
and
determination
is
six
years.
c.
The
period
for
examination
and
determination
of
the
correct
amount
of
tax
is
unlimited
in
the
case
of
a
false
or
fraudulent
return
made
with
the
intent
to
evade
tax
or
in
the
case
of
a
failure
to
file
a
return.
d.
In
lieu
of
the
period
of
limitation
for
any
prior
year
for
which
an
overpayment
of
tax
or
an
elimination
or
reduction
of
an
underpayment
of
tax
due
for
that
prior
year
results
from
the
carryback
to
that
prior
year
of
a
net
operating
loss
or
net
capital
loss,
the
period
is
the
period
of
limitation
for
the
taxable
year
of
the
net
operating
loss
or
net
capital
loss
which
results
in
the
carryback.
e.
(1)
In
addition
to
the
applicable
period
of
limitation
for
examination
and
determination
in
paragraph
“b”
,
“c”
,
or
“d”
,
the
department
may
make
an
examination
and
determination
at
any
time
within
one
year
from
the
date
of
receipt
by
the
department
of
a
federal
adjustments
report
with
respect
to
a
final
House
File
2641,
p.
33
federal
adjustment
or
final
federal
partnership
adjustment
as
defined
in
section
422.25A
for
a
particular
tax
year.
In
order
to
begin
the
running
of
the
one-year
period,
the
federal
adjustments
report
related
to
the
final
federal
adjustment
or
final
federal
partnership
adjustment
shall
be
transmitted
to
the
department
by
the
taxpayer
in
the
form
and
manner
specified
by
the
department
by
rule.
(2)
The
department
in
its
discretion
may
adopt
rules
to
establish
a
de
minimis
amount
for
which
subparagraph
(1)
shall
not
apply
and
the
taxpayer
shall
not
be
required
to
file
a
federal
adjustments
report.
(3)
The
department
may
in
its
discretion
and
when
administratively
feasible
adopt
a
process
through
rule
by
which
a
taxpayer
may
make
estimated
payments
of
tax
expected
to
result
from
a
pending
internal
revenue
service
audit
prior
to
the
filing
of
a
federal
adjustments
report
with
the
department.
The
process
shall
provide
that
the
estimated
tax
payments
shall
be
credited
against
any
tax
liability
ultimately
found
to
be
due
to
the
state
from
the
internal
revenue
service
audit
and
will
limit
the
accrual
of
further
statutory
interest
on
that
liability.
The
process
shall
also
provide
that
if
the
estimated
tax
payments
exceed
the
final
tax
liability
and
statutory
interest
ultimately
determined
to
be
due,
the
taxpayer
is
entitled
to
a
refund
or
credit
for
the
excess,
without
interest,
provided
the
taxpayer
files
a
federal
adjustments
report,
or
a
claim
for
refund
or
credit
of
tax
under
section
422.73,
no
later
than
one
year
following
the
final
determination
date.
2.
a.
If
the
tax
found
due
under
subsection
1
is
greater
than
the
amount
paid,
the
department
shall
compute
the
amount
due,
together
with
interest
and
penalties
as
provided
in
paragraph
“b”
,
and
shall
mail
a
notice
of
assessment
to
the
taxpayer
and,
if
applicable,
to
the
taxpayer’s
authorized
representative
of
the
total,
which
shall
be
computed
as
a
sum
certain,
with
interest
computed
to
the
last
day
of
the
month
in
which
the
notice
is
dated.
b.
In
addition
to
the
tax
or
additional
tax
determined
by
the
department
under
subsection
1,
the
taxpayer
shall
pay
interest
on
the
tax
or
additional
tax
at
the
rate
in
effect
House
File
2641,
p.
34
under
section
421.7
for
each
month
counting
each
fraction
of
a
month
as
an
entire
month,
computed
from
the
date
the
return
was
required
to
be
filed.
In
addition
to
the
tax
or
additional
tax,
the
taxpayer
shall
pay
a
penalty
as
provided
in
section
421.27.
Sec.
64.
NEW
SECTION
.
422.25A
Reporting
and
treatment
of
certain
partnership
adjustments.
1.
Definitions.
As
used
in
this
section
and
sections
422.25B
and
422.25C,
unless
the
context
otherwise
requires:
a.
“Administrative
adjustment
request”
means
the
same
as
provided
in
section
6227
of
the
Internal
Revenue
Code.
b.
“Audited
partnership”
means
a
partnership
subject
to
a
final
federal
partnership
adjustment
resulting
from
a
partnership
level
audit.
c.
“C
corporation”
means
an
entity
that
elects
or
is
required
to
be
taxed
as
a
corporation
under
title
26,
chapter
1,
subchapter
A,
part
2,
of
the
Internal
Revenue
Code.
d.
“Corporate
partner”
means
a
C
corporation
partner
that
is
subject
to
tax
pursuant
to
section
422.33.
e.
“Direct
partner”
means
a
person
that
holds
an
interest
directly
in
a
partnership
or
pass-through
entity.
f.
“Exempt
partner”
means
a
partner
that
is
exempt
from
taxation
pursuant
to
section
422.34.
g.
“Federal
adjustments
report”
means
the
same
as
defined
in
section
422.25.
h.
“Federal
partnership
adjustment”
means
a
change
to
an
item
or
amount
required
to
be
determined
under
the
Internal
Revenue
Code
and
the
regulations
thereunder
that
is
used
by
a
partnership
and
its
direct
and
indirect
partners
to
compute
state
tax
owed
for
the
reviewed
year
where
such
change
results
from
a
partnership
level
audit
or
an
administrative
adjustment
request.
A
federal
partnership
adjustment
is
positive
to
the
extent
that
it
increases
Iowa
taxable
income
as
determined
under
this
title
and
is
negative
to
the
extent
that
it
decreases
Iowa
taxable
income
as
determined
under
this
title.
A
federal
adjustment
reported
on
an
amended
federal
return
or
other
similar
report
filed
pursuant
to
section
6225(c)
of
the
Internal
Revenue
Code
shall
not
be
considered
a
federal
partnership
adjustment
for
purposes
of
this
section.
House
File
2641,
p.
35
i.
“Federal
partnership
representative”
means
the
person
the
partnership
designates
for
the
taxable
year
as
the
partnership’s
representative,
or
the
person
the
internal
revenue
service
has
appointed
to
act
as
the
federal
partnership
representative,
pursuant
to
section
6223(a)
of
the
Internal
Revenue
Code
and
the
regulations
thereunder.
j.
“Fiduciary
partner”
means
a
partner
that
is
a
fiduciary
that
is
subject
to
tax
pursuant
to
sections
422.5
and
422.6.
k.
“Final
determination
date”
means
any
one
of
the
following
dates:
(1)
In
the
case
of
a
federal
partnership
adjustment
that
arises
from
a
partnership
level
audit,
the
first
day
on
which
no
federal
adjustments
arising
from
that
audit
remain
to
be
finally
determined,
whether
by
agreement,
or,
if
appealed
or
contested,
by
a
final
decision
with
respect
to
which
all
rights
of
appeal
have
been
waived
or
exhausted.
For
agreements
required
to
be
signed
by
the
internal
revenue
service
and
the
audited
partnership,
the
final
determination
date
is
the
date
on
which
the
last
party
signed
the
agreement.
(2)
In
the
case
of
a
federal
partnership
adjustment
that
results
from
a
timely
filed
administrative
adjustment
request,
the
day
on
which
the
administrative
adjustment
request
was
filed
with
the
internal
revenue
service.
l.
“Final
federal
partnership
adjustment”
means
a
federal
partnership
adjustment
after
the
final
determination
date
for
that
federal
partnership
adjustment
has
passed.
m.
“Indirect
partner”
means
a
partner
in
a
partnership
or
pass-through
entity
where
such
partnership
or
pass-through
entity
itself
holds
an
interest
directly,
or
through
another
indirect
partner,
in
a
partnership
or
pass-through
entity.
n.
“Individual
partner”
means
a
partner
who
is
a
natural
person
that
is
subject
to
tax
pursuant
to
section
422.5.
o.
“Nonresident
partner”
means
a
partner
that
is
not
a
resident
partner
as
defined
in
this
subsection.
p.
“Partner”
means
a
person
that
holds
an
interest,
directly
or
indirectly,
in
a
partnership
or
pass-through
entity.
q.
“Partnership”
means
an
entity
subject
to
taxation
under
subchapter
K
of
the
Internal
Revenue
Code
and
the
regulations
thereunder
and
includes
but
is
not
limited
to
a
House
File
2641,
p.
36
syndicate,
group,
pool,
joint
venture,
or
other
unincorporated
organization
through
or
by
means
of
which
any
business,
financial
operation,
or
venture
is
carried
on
and
which
is
not,
within
the
meaning
of
this
chapter,
a
trust,
estate,
or
corporation.
r.
“Partnership
level
audit”
means
an
examination
by
the
internal
revenue
service
at
the
partnership
level
pursuant
to
subchapter
C,
title
26,
subtitle
F,
chapter
63,
of
the
Internal
Revenue
Code,
as
enacted
by
the
Bipartisan
Budget
Act
of
2015,
Pub.
L.
No.
114-74,
and
as
amended,
which
results
in
final
federal
partnership
adjustments
initiated
and
made
by
the
internal
revenue
service.
s.
“Pass-through
entity”
means
an
entity,
other
than
a
partnership,
that
is
not
subject
to
tax
under
section
422.33
for
C
corporations
but
excluding
an
exempt
partner.
“Pass-through
entity”
includes
but
is
not
limited
to
S
corporations,
estates,
and
trusts
other
than
grantor
trusts.
t.
“Reallocation
adjustment”
means
a
final
federal
partnership
adjustment
that
changes
the
shares
of
items
of
partnership
income,
gain,
loss,
expense,
or
credit
allocated
to
a
partner
that
holds
an
interest
directly
in
a
partnership
or
pass-through
entity.
A
positive
reallocation
adjustment
means
the
portion
of
a
reallocation
adjustment
that
would
increase
Iowa
taxable
income
for
such
partners,
and
a
negative
reallocation
adjustment
means
the
portion
of
a
reallocation
adjustment
that
would
decrease
Iowa
taxable
income
for
such
partners.
u.
“Resident
partner”
means
any
of
the
following:
(1)
For
an
individual
partner,
a
“resident”
as
defined
in
section
422.4.
(2)
For
a
fiduciary
partner,
one
with
situs
in
Iowa.
(3)
For
all
other
partners,
a
partner
whose
headquarters
or
principal
place
of
business
is
located
in
Iowa.
v.
“Reviewed
year”
means
the
taxable
year
of
a
partnership
that
is
subject
to
a
partnership
level
audit
from
which
final
federal
partnership
adjustments
arise,
or
otherwise
means
the
taxable
year
of
the
partnership
or
pass-through
entity
that
is
the
subject
of
a
state
partnership
audit.
w.
“State
partnership
audit”
means
an
examination
by
the
House
File
2641,
p.
37
director
at
the
partnership
or
pass-through
entity
level
which
results
in
adjustments
to
partnership
or
pass-through
entity
related
items
or
reallocations
of
income,
gains,
losses,
expenses,
credits,
and
other
attributes
among
such
partners
for
the
reviewed
year.
x.
“Tiered
partner”
means
any
partner
that
is
a
partnership
or
pass-through
entity.
y.
“Unrelated
business
income”
means
the
income
which
is
defined
in
section
512
of
the
Internal
Revenue
Code
and
the
regulations
thereunder.
2.
Application.
Partnerships
and
their
direct
partners
and
indirect
partners
shall
report
final
federal
partnership
adjustments
as
provided
in
this
section.
3.
State
partnership
representative.
Notwithstanding
any
other
law
to
the
contrary,
the
state
partnership
representative
for
the
reviewed
year
shall
have
the
sole
authority
to
act
on
behalf
of
the
partnership
or
pass-through
entity
with
respect
to
an
action
required
or
permitted
to
be
taken
by
a
partnership
or
pass-through
entity
under
this
section
or
section
422.28
or
422.29
with
respect
to
final
federal
partnership
adjustments
arising
from
a
partnership
level
audit
or
an
administrative
adjustment
request,
and
its
direct
partners
and
indirect
partners
shall
be
bound
by
those
actions.
4.
Reporting
and
payment
requirements
for
audited
partnerships
and
their
partners
subject
to
final
federal
partnership
adjustments.
a.
Unless
an
audited
partnership
makes
the
election
in
subsection
5,
the
audited
partnership
shall
do
all
of
the
following
for
all
final
federal
partnership
adjustments
no
later
than
ninety
days
after
the
final
determination
date
of
the
audited
partnership:
(1)
File
a
completed
federal
adjustments
report.
(2)
Notify
each
direct
partner
of
such
partner’s
distributive
share
of
the
adjustments
in
the
manner
and
form
prescribed
by
the
department
by
rule.
(3)
File
an
amended
composite
return
under
section
422.13
if
one
was
originally
filed,
and
if
applicable
for
withholding
from
partners,
file
an
amended
withholding
report
under
section
422.16,
and
pay
the
additional
amount
under
this
title
House
File
2641,
p.
38
that
would
have
been
due
had
the
final
federal
partnership
adjustments
been
reported
properly
as
required,
including
any
applicable
interest
and
penalties.
b.
Unless
an
audited
partnership
paid
an
amount
on
behalf
of
the
direct
partners
of
the
audited
partnership
pursuant
to
subsection
5,
all
direct
partners
of
the
audited
partnership
shall
do
all
of
the
following
no
later
than
one
hundred
eighty
days
after
the
final
determination
date
of
the
audited
partnership:
(1)
File
a
completed
federal
adjustments
report
reporting
the
direct
partner’s
distributive
share
of
the
adjustments
required
to
be
reported
to
such
partners
under
paragraph
“a”
.
(2)
If
the
direct
partner
is
a
tiered
partner,
notify
all
partners
that
hold
an
interest
directly
in
the
tiered
partner
of
such
partner’s
distributive
share
of
the
adjustments
in
the
manner
and
form
prescribed
by
the
department
by
rule.
(3)
If
the
direct
partner
is
a
tiered
partner
and
subject
to
section
422.13,
file
an
amended
composite
return
under
section
422.13
if
such
return
was
originally
filed,
and
if
applicable
for
withholding
from
partners
file
an
amended
withholding
report
under
section
422.16
if
one
was
originally
required
to
be
filed.
(4)
Pay
any
additional
amount
under
this
title
that
would
have
been
due
had
the
final
federal
partnership
adjustments
been
reported
properly
as
required,
including
any
applicable
penalty
and
interest.
c.
Unless
a
partnership
or
tiered
partner
paid
an
amount
on
behalf
of
the
partners
pursuant
to
subsection
5,
each
indirect
partner
shall
do
all
of
the
following:
(1)
Within
ninety
days
after
the
time
for
filing
and
furnishing
statements
to
tiered
partners
and
their
partners
as
established
by
section
6226
of
the
Internal
Revenue
Code
and
the
regulations
thereunder,
file
a
completed
federal
adjustments
report.
(2)
If
the
indirect
partner
is
a
tiered
partner,
within
ninety
days
after
the
time
for
filing
and
furnishing
statements
to
tiered
partners
and
their
partners
as
established
by
section
6226
of
the
Internal
Revenue
Code
and
the
regulations
thereunder
but
within
sufficient
time
for
all
indirect
partners
House
File
2641,
p.
39
to
also
complete
the
requirements
of
this
subsection,
notify
all
of
the
partners
that
hold
an
interest
directly
in
the
tiered
partner
of
such
partner’s
distributive
share
of
the
adjustments
in
the
manner
and
form
prescribed
by
the
department
by
rule.
(3)
Within
ninety
days
after
the
time
for
filing
and
furnishing
statements
to
tiered
partners
and
their
partners
as
established
by
section
6226
of
the
Internal
Revenue
Code
and
the
regulations
thereunder,
if
the
indirect
partner
is
a
tiered
partner
and
subject
to
section
422.13,
file
an
amended
composite
return
under
section
422.13
if
such
return
was
originally
filed,
and
if
applicable
for
withholding
from
partners,
file
an
amended
withholding
report
under
section
422.16
if
one
was
originally
required
to
be
filed.
(4)
Within
ninety
days
after
the
time
for
filing
and
furnishing
statements
to
tiered
partners
and
the
partners
of
the
tiered
partners
as
established
by
section
6226
of
the
Internal
Revenue
Code
and
the
regulations
thereunder,
pay
any
additional
amount
due
under
this
title,
including
any
penalty
and
interest
that
would
have
been
due
had
the
final
federal
partnership
adjustments
been
reported
properly
as
required.
5.
Election
for
partnership
or
tiered
partners
to
pay.
a.
An
audited
partnership,
or
a
tiered
partner
that
receives
a
notification
of
a
final
federal
partnership
adjustment
under
subsection
4,
may
make
an
election
to
pay
as
provided
under
this
subsection.
b.
An
audited
partnership
or
tiered
partner
makes
an
election
to
pay
under
this
subsection
by
filing
a
completed
federal
adjustments
report,
notifying
the
department
in
the
manner
and
form
prescribed
by
the
department
that
it
is
making
the
election
under
this
subsection,
notifying
each
of
the
direct
partners
of
such
partner’s
distributive
share
of
the
adjustments,
and
paying
on
behalf
of
its
partners
an
amount
calculated
in
paragraph
“c”
,
including
any
applicable
penalty
and
interest.
These
requirements
shall
all
be
fulfilled
within
one
of
the
following
time
periods:
(1)
For
the
audited
partnership,
no
later
than
ninety
days
after
the
final
determination
date
of
the
audited
partnership.
(2)
For
a
direct
tiered
partner,
no
later
than
one
hundred
House
File
2641,
p.
40
eighty
days
after
the
final
determination
date
of
the
audited
partnership.
(3)
For
an
indirect
tiered
partner,
within
ninety
days
after
the
time
for
filing
and
furnishing
statements
to
a
tiered
partner
and
the
partner
of
the
tiered
partner,
as
established
by
section
6226
of
the
Internal
Revenue
Code
and
the
regulations
thereunder.
c.
The
amount
due
under
this
subsection
from
an
audited
partnership
or
tiered
partner
shall
be
calculated
as
follows:
(1)
Exclude
from
final
federal
partnership
adjustments
and
any
positive
reallocation
adjustments
the
distributive
share
of
such
adjustments
reported
to
an
exempt
partner
that
holds
an
interest
directly
in
the
audited
partnership
if
the
audited
partnership
is
making
the
election
or
that
holds
an
interest
directly
in
the
tiered
partner
if
the
tiered
partner
is
making
the
election,
but
only
to
the
extent
the
distributive
share
is
not
unrelated
business
income.
(2)
Determine
the
total
distributive
share
of
all
final
federal
partnership
adjustments
and
positive
reallocation
adjustments
as
modified
by
this
title
that
are
reported
to
corporate
partners,
and
to
exempt
partners
to
the
extent
the
distributive
share
is
unrelated
business
income,
and
allocate
and
apportion
such
adjustments
as
provided
in
section
422.33
at
the
partnership
or
tiered
partner
level,
and
multiply
the
resulting
amount
by
the
maximum
state
corporate
income
tax
rate
pursuant
to
section
422.33
for
the
reviewed
year.
(3)
Determine
the
total
distributive
share
of
all
final
federal
partnership
adjustments
and
positive
reallocation
adjustments
as
modified
by
this
title
that
are
reported
to
nonresident
individual
partners
and
nonresident
fiduciary
partners
and
allocate
and
apportion
such
adjustments
as
provided
in
section
422.33
at
the
partnership
or
tiered
partner
level,
and
multiply
the
resulting
amount
by
the
maximum
individual
income
tax
rate
pursuant
to
section
422.5A
for
the
reviewed
year.
(4)
For
the
total
distributive
share
of
all
final
federal
partnership
adjustments
and
positive
reallocation
adjustments
as
modified
by
this
title
that
are
reported
to
tiered
partners:
(a)
Determine
the
amount
of
such
adjustments
which
are
of
a
House
File
2641,
p.
41
type
that
would
be
subject
to
sourcing
to
Iowa
under
section
422.8,
subsection
2,
paragraph
“a”
,
as
a
nonresident,
and
then
determine
the
portion
of
this
amount
that
would
be
sourced
to
Iowa
under
those
provisions
as
if
the
tiered
partner
were
a
nonresident.
(b)
Determine
the
amount
of
such
adjustments
which
are
of
a
type
that
would
not
be
subject
to
sourcing
to
Iowa
under
section
422.8,
subsection
2,
paragraph
“a”
,
as
a
nonresident.
(c)
Determine
the
portion
of
the
amount
in
subparagraph
division
(b)
that
can
be
established,
as
prescribed
by
the
department
by
rule,
to
be
properly
allocable
to
indirect
partners
that
are
nonresident
partners
or
other
partners
not
subject
to
tax
on
the
adjustments.
(d)
Multiply
the
total
of
the
amounts
determined
in
subparagraph
divisions
(a)
and
(b),
reduced
by
any
amount
determined
in
subparagraph
division
(c),
by
the
highest
individual
income
tax
rate
pursuant
to
section
422.5A
for
the
reviewed
year.
(5)
For
the
total
distributive
share
of
all
final
federal
partnership
adjustments
and
positive
reallocation
adjustments
as
modified
by
this
title
that
are
reported
to
resident
individual
partners
and
resident
fiduciary
partners,
multiply
that
amount
by
the
highest
individual
income
tax
rate
pursuant
to
section
422.5A
for
the
reviewed
year.
(6)
Total
the
amounts
computed
pursuant
to
subparagraphs
(2)
through
(5)
and
calculate
any
interest
and
penalty
as
provided
under
this
title.
Notwithstanding
any
provision
of
law
to
the
contrary,
interest
and
penalties
on
the
amount
due
by
the
audited
partnership
or
tiered
partner
shall
be
computed
from
the
day
after
the
due
date
of
the
reviewed
year
return
without
extension,
and
shall
be
imposed
as
if
the
audited
partnership
or
tiered
partner
was
required
to
pay
tax
or
show
tax
due
on
the
original
return
for
the
reviewed
year.
d.
Adjustments
subject
to
the
election
in
this
subsection
do
not
include
any
adjustments
arising
from
an
administrative
adjustment
request.
e.
An
audited
partnership
or
tiered
partner
not
otherwise
subject
to
any
reporting
or
payment
obligation
to
Iowa
that
makes
an
election
under
this
subsection
consents
to
be
subject
House
File
2641,
p.
42
to
the
Iowa
laws
related
to
reporting,
assessment,
collection,
and
payment
of
Iowa
tax,
interest,
and
penalties
calculated
under
the
election.
6.
Modified
reporting
and
payment
method.
The
department
may
adopt
procedures
for
an
audited
partnership
or
tiered
partner
to
enter
into
an
agreement
with
the
department
to
use
an
alternative
reporting
and
payment
method,
including
applicable
time
requirements
or
any
other
provision
of
this
section.
The
audited
partnership
or
tiered
partner
must
demonstrate
that
the
requested
method
will
reasonably
provide
for
the
reporting
and
payment
of
taxes,
penalties,
and
interest
due
under
the
provisions
of
this
section.
Application
for
approval
of
an
alternative
reporting
and
payment
method
must
be
made
by
the
audited
partnership
or
tiered
partner
within
the
time
for
making
an
election
to
pay
under
subsection
5
and
in
the
manner
prescribed
by
the
department.
Approval
of
such
an
alternative
reporting
and
payment
method
shall
be
at
the
discretion
of
the
department.
7.
Effect
of
election
by
partnership
or
tiered
partner
and
payment
of
amount
due.
a.
The
election
made
under
subsection
5
is
irrevocable,
unless
in
the
discretion
of
the
director,
the
director
determines
otherwise.
b.
The
amount
determined
in
subsection
5,
when
properly
reported
and
paid
by
the
audited
partnership
or
tiered
partner,
shall
be
treated
as
paid
on
behalf
of
the
partners
of
such
audited
partnership
or
tiered
partner
on
the
same
final
federal
partnership
adjustments,
provided,
however,
that
no
partner
may
take
any
deduction
or
credit
for
the
amount,
claim
a
refund
of
the
amount,
or
include
the
amount
on
such
partner’s
Iowa
return
in
any
manner.
c.
In
the
event
another
state
offers
to
an
audited
partnership
or
tiered
partner
a
similar
election
to
pay
state
tax
resulting
from
final
federal
partnership
adjustments,
nothing
in
this
subsection
shall
prohibit
a
resident
who
holds
an
interest
directly
in
that
audited
partnership
or
tiered
partner,
as
the
case
may
be,
from
claiming
a
credit
for
taxes
paid
by
the
resident
to
another
state
under
section
422.8,
subsection
1,
for
any
amounts
paid
by
the
audited
partnership
House
File
2641,
p.
43
or
tiered
partner
on
such
resident
partner’s
behalf
to
another
state,
provided
such
payment
otherwise
meets
the
requirements
of
section
422.8,
subsection
1.
d.
Nothing
in
this
section
shall
prohibit
the
department
from
assessing
direct
partners
and
indirect
partners
for
taxes
they
owe
in
the
event
that
an
audited
partnership
or
tiered
partner
fails
to
timely
make
any
report
or
payment
required
by
this
section
for
any
reason.
8.
Assessments
of
additional
Iowa
income
tax,
interest,
and
penalties,
and
claims
for
refund,
arising
from
final
federal
partnership
adjustments.
a.
The
department
shall
assess
additional
Iowa
income
tax,
interest,
and
penalties
arising
from
final
federal
partnership
adjustments
in
the
same
manner
as
provided
in
this
title
unless
a
different
treatment
is
provided
by
this
subsection.
Since
final
federal
partnership
adjustments
are
determined
at
the
audited
partnership
level,
any
assessment
issued
to
partners
shall
not
be
appealable
by
the
partner.
The
department
may
assess
any
taxes,
including
on-behalf-of
amounts,
interest,
and
penalties
arising
from
the
final
federal
partnership
adjustments
if
it
issues
a
notice
of
assessment
to
the
audited
partnership,
tiered
partner,
or
other
direct
or
indirect
partner
on
or
before
the
expiration
of
the
applicable
limitations
period
specified
in
section
422.25.
b.
In
addition
to
the
period
for
claiming
a
refund
or
credit
provided
in
section
422.73,
subsection
1,
paragraph
“a”
,
and
notwithstanding
section
422.73,
subsection
1,
paragraph
“b”
,
a
partnership,
tiered
partner,
or
other
direct
or
indirect
partner,
as
the
case
may
be,
may
file
a
claim
for
refund
of
Iowa
income
tax
arising
directly
or
indirectly
from
a
final
federal
partnership
adjustment
arising
from
a
partnership
level
audit
on
or
before
the
date
which
is
one
year
from
the
date
the
federal
adjustments
report
for
that
final
federal
partnership
adjustment
was
required
to
be
filed
by
such
person
under
this
section.
9.
Rules.
The
department
may
adopt
any
rules
pursuant
to
chapter
17A
to
implement
this
section.
Sec.
65.
NEW
SECTION
.
422.25B
State
partnership
representative.
House
File
2641,
p.
44
1.
As
used
in
this
section,
all
words
and
phrases
defined
in
section
422.25A
shall
have
the
same
meaning
given
them
by
that
section.
2.
The
state
partnership
representative
for
the
reviewed
year
for
a
partnership
shall
be
the
partnership’s
federal
partnership
representative
with
respect
to
an
action
required
or
permitted
to
be
taken
by
a
state
partnership
representative
under
this
chapter
for
a
reviewed
year,
unless
the
partnership
designates
in
writing
another
person
as
the
state
partnership
representative
as
provided
in
subsection
3.
The
state
partnership
representative
for
the
reviewed
year
for
a
pass-through
entity
is
the
person
designated
in
subsection
3.
3.
The
department
may
establish
reasonable
qualifications
for
a
person
to
be
a
state
partnership
representative.
If
a
partnership
desires
to
designate
a
person
other
than
the
federal
partnership
representative,
the
partnership
shall
designate
such
person
in
the
manner
and
form
prescribed
by
the
department.
A
pass-through
entity
shall
designate
a
person
as
the
state
partnership
representative
in
the
manner
and
form
prescribed
by
the
department.
A
partnership
or
pass-through
entity
shall
be
allowed
to
change
such
designation
by
notifying
the
department
at
the
time
the
change
occurs
in
the
manner
and
form
prescribed
by
the
department.
4.
The
department
may
adopt
any
rules
pursuant
to
chapter
17A
to
implement
this
section.
Sec.
66.
NEW
SECTION
.
422.25C
Partnership
and
pass-through
entity
audits
and
examinations
——
consistent
treatment
of
entity-level
items
——
binding
actions
——
amended
returns.
1.
As
used
in
this
section,
all
words
and
phrases
defined
in
section
422.25A
shall
have
the
same
meaning
given
them
by
that
section.
2.
For
tax
years
beginning
on
or
after
January
1,
2020,
any
adjustments
to
a
partnership’s
or
pass-through
entity’s
items
of
income,
gain,
loss,
expense,
or
credit,
or
an
adjustment
to
such
items
allocated
to
a
partner
that
holds
an
interest
in
a
partnership
or
pass-through
entity
for
the
reviewed
year
by
the
department
as
a
result
of
a
state
partnership
audit,
shall
be
determined
at
the
partnership
level
or
pass-through
entity
level
in
the
same
manner
as
provided
by
section
6221(a)
House
File
2641,
p.
45
of
the
Internal
Revenue
Code
and
the
regulations
thereunder
unless
a
different
treatment
is
specifically
provided
in
this
title.
The
provisions
of
sections
6222,
6223,
and
6227
of
the
Internal
Revenue
Code
and
the
regulations
thereunder
shall
also
apply
to
a
partnership
or
pass-through
entity
and
its
direct
or
indirect
partners
in
the
same
manner
as
provided
in
such
sections
unless
a
different
treatment
is
specifically
provided
in
this
title.
For
purposes
of
applying
such
sections,
due
account
shall
be
made
for
differences
in
federal
and
Iowa
terminology.
The
adjustment
provided
by
section
6221(a)
of
the
Internal
Revenue
Code
shall
be
determined
as
provided
in
such
section
but
shall
be
based
on
Iowa
taxable
income
or
other
tax
attributes
of
the
partnership
as
determined
pursuant
to
this
chapter
for
the
reviewed
year.
The
department
shall
issue
a
notice
of
adjustment
to
the
partnership
or
pass-through
entity.
Such
notice
shall
be
treated
as
an
assessment
for
the
purposes
of
section
422.25,
and
the
notice
shall
be
appealable
by
the
partnership
or
pass-through
entity
pursuant
to
sections
422.28
and
422.29
and
shall
be
issued
within
the
time
period
provided
by
section
422.25.
Once
the
adjustments
to
partnership-related
or
pass-through
entity-related
items
or
reallocations
of
income,
gains,
losses,
expenses,
credits,
and
other
attributes
among
such
partners
for
the
reviewed
year
are
finally
determined,
the
partnership
or
pass-through
entity
and
any
direct
partners
or
indirect
partners
shall
then
be
subject
to
the
provisions
of
section
422.25,
subsection
1,
paragraph
“e”
,
and
section
422.25A
in
the
same
manner
as
if
the
state
partnership
audit
were
a
federal
partnership
level
audit,
and
as
if
the
final
state
partnership
audit
adjustment
were
a
final
federal
partnership
adjustment.
The
penalty
exceptions
in
section
421.27,
subsection
2,
paragraphs
“b”
and
“c”
,
shall
not
apply
to
a
state
partnership
audit.
3.
The
state
partnership
representative
for
the
reviewed
year
as
determined
under
section
422.25B
shall
have
the
sole
authority
to
act
on
behalf
of
the
partnership
or
pass-through
entity
with
respect
to
an
action
required
or
permitted
to
be
taken
by
a
partnership
or
pass-through
entity
under
this
section,
including
proceedings
under
section
422.28
or
422.29,
and
the
partnership’s
or
pass-through
entity’s
direct
partners
House
File
2641,
p.
46
and
indirect
partners
shall
be
bound
by
those
actions.
4.
If
the
department,
the
partnership
or
pass-through
entity,
and
the
partnership
or
pass-through
entity
owners
agree,
the
provisions
of
this
section
may
be
applied
to
tax
years
beginning
before
January
1,
2020.
5.
The
department
may
adopt
rules
pursuant
to
chapter
17A
to
implement
this
section.
Sec.
67.
Section
422.35,
Code
2020,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
26.
Any
income
subtracted
from
federal
taxable
income
for
an
adjustment
year
pursuant
to
section
6225
of
the
Internal
Revenue
Code
and
the
regulations
thereunder
shall
be
added
back
in
computing
net
income
for
state
tax
purposes
for
the
adjustment
year.
Sec.
68.
Section
422.39,
Code
2020,
is
amended
by
striking
the
section
and
inserting
in
lieu
thereof
the
following:
422.39
Statutes
applicable
to
corporations
and
corporation
tax.
All
the
provisions
of
sections
422.24
through
422.27
of
division
II,
respecting
payment,
collection,
reporting,
examination,
and
assessment,
shall
apply
in
respect
to
a
corporation
subject
to
the
provisions
of
this
division
and
to
the
tax
due
and
payable
by
a
corporation
taxable
under
this
division.
This
includes
but
is
not
limited
to
a
corporation
that
is
a
pass-through
entity
as
defined
in
section
422.25A.
Sec.
69.
Section
422.73,
Code
2020,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
01.
For
purposes
of
this
section,
“federal
adjustment”
,
“final
determination
date”
,
and
“final
federal
adjustment”
all
mean
the
same
as
defined
in
section
422.25.
Sec.
70.
Section
422.73,
subsections
1
and
3,
Code
2020,
are
amended
to
read
as
follows:
1.
a.
If
it
appears
that
an
amount
of
tax,
penalty,
or
interest
has
been
paid
which
was
not
due
under
division
II
,
III
or
V
of
this
chapter
,
then
that
amount
shall
be
credited
against
any
tax
due
on
the
books
of
the
department
by
the
person
who
made
the
excessive
payment,
or
that
amount
shall
be
refunded
to
the
person
or
with
the
person’s
approval,
credited
to
tax
to
become
due.
A
claim
for
refund
or
credit
that
has
House
File
2641,
p.
47
not
been
filed
with
the
department
within
three
years
after
the
return
upon
which
a
refund
or
credit
claimed
became
due,
or
within
one
year
after
the
payment
of
the
tax
upon
which
a
refund
or
credit
is
claimed
was
made,
whichever
time
is
the
later,
shall
not
be
allowed
by
the
director.
If,
as
a
result
of
a
carryback
of
a
net
operating
loss
or
a
net
capital
loss,
the
amount
of
tax
in
a
prior
period
is
reduced
and
an
overpayment
results,
the
claim
for
refund
or
credit
of
the
overpayment
shall
be
filed
with
the
department
within
the
three
years
after
the
return
for
the
taxable
year
of
the
net
operating
loss
or
net
capital
loss
became
due.
b.
Notwithstanding
the
period
of
limitation
specified
in
paragraph
“a”
,
the
taxpayer
shall
have
six
months
one
year
from
the
day
of
final
disposition
final
determination
date
of
any
income
tax
matter
between
the
taxpayer
and
the
internal
revenue
service
final
federal
adjustment
arising
from
an
internal
revenue
service
audit
or
other
similar
action
by
the
internal
revenue
service
with
respect
to
the
particular
tax
year
to
claim
an
income
tax
refund
or
credit
arising
from
that
final
federal
adjustment
.
3.
The
department
shall
enter
into
an
agreement
with
the
internal
revenue
service
for
the
transmission
of
federal
income
tax
reports
on
individuals
required
to
file
an
Iowa
income
tax
return
who
have
been
involved
in
an
income
tax
matter
with
the
internal
revenue
service.
After
final
disposition
the
final
determination
date
of
the
income
tax
matter
that
involves
a
final
federal
adjustment
between
the
taxpayer
and
the
internal
revenue
service,
the
department
shall
determine
whether
the
individual
is
due
a
state
income
tax
refund
as
a
result
of
that
final
disposition
of
federal
adjustment
from
such
income
tax
matter.
If
the
individual
is
due
a
state
income
tax
refund,
the
department
shall
notify
the
individual
within
thirty
days
and
request
the
individual
to
file
a
claim
for
refund
or
credit
with
the
department.
Sec.
71.
APPLICABILITY.
This
division
of
this
Act
applies
to
federal
adjustments
and
federal
partnership
adjustments
that
have
a
final
determination
date
after
the
effective
date
of
this
division
of
this
Act.
DIVISION
VI
House
File
2641,
p.
48
SETOFF
PROCEDURES
——
RULEMAKING
——
EFFECTIVE
DATE
Sec.
72.
RULES.
The
following
applies
to
2020
Iowa
Acts,
House
File
2565,
if
enacted:
The
department
of
revenue
shall
adopt
rules
governing
setoffs
that
occur
during
the
transition
from
the
department
of
administrative
services
to
the
department
of
revenue.
Sec.
73.
2020
Iowa
Acts,
House
File
2565,
section
28,
if
enacted,
is
amended
to
read
as
follows:
SEC.
28.
EFFECTIVE
DATE.
This
Act
takes
effect
on
the
later
of
January
1,
2021
,
or
the
effective
date
of
the
rules
adopted
by
the
department
of
revenue
pursuant
to
chapter
17A
implementing
this
Act
other
than
transitional
rules
.
Sec.
74.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
DIVISION
VII
MARRIED
TAXPAYERS
——
JOINT
LIABILITY
Sec.
75.
Section
422.21,
subsection
7,
Code
2020,
is
amended
to
read
as
follows:
7.
If
married
taxpayers
file
a
joint
return
or
file
separately
on
a
combined
return
in
accordance
with
rules
prescribed
by
the
director,
both
spouses
are
jointly
and
severally
liable
for
the
total
tax
due
on
the
return,
except
when
one
spouse
is
considered
to
be
an
innocent
spouse
eligible
for
relief
under
criteria
established
pursuant
to
section
6015
of
the
Internal
Revenue
Code.
The
department
may
notify
the
nonrequesting
spouse
or
former
spouse
and
permit,
by
rule,
the
intervention
of
a
nonrequesting
spouse
or
former
spouse
when
relief
from
joint
and
several
liability
is
requested.
Sec.
76.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
DIVISION
VIII
BUSINESS
INTEREST
EXPENSE
DEDUCTION
AND
GLOBAL
INTANGIBLE
LOW-TAXED
INCOME
Sec.
77.
Section
422.7,
Code
2020,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
59.
a.
Section
163(j)
of
the
Internal
Revenue
Code
does
not
apply
in
computing
net
income
for
state
tax
purposes.
If
the
taxpayer’s
federal
adjusted
gross
income
for
the
tax
year
was
increased
or
decreased
by
reason
of
the
House
File
2641,
p.
49
application
of
section
163(j)
of
the
Internal
Revenue
Code,
the
taxpayer
shall
recompute
net
income
for
state
tax
purposes
under
rules
prescribed
by
the
director.
b.
Paragraph
“a”
shall
not
apply
during
any
tax
year
in
which
the
additional
first-year
depreciation
allowance
authorized
in
section
168(k)
of
the
Internal
Revenue
Code
applies
in
computing
net
income
for
state
tax
purposes.
c.
For
any
tax
year
in
which
paragraph
“a”
does
not
apply,
a
taxpayer
shall
not
be
permitted
to
deduct
any
amount
of
interest
expense
paid
or
accrued
in
a
previous
taxable
year
that
is
allowed
as
a
deduction
in
the
current
taxable
year
by
reason
of
the
carryforward
of
disallowed
business
interest
provisions
of
section
163(j)(2)
of
the
Internal
Revenue
Code,
if
either
of
the
following
apply:
(1)
The
interest
expense
was
originally
paid
or
accrued
during
a
tax
year
in
which
paragraph
“a”
applied.
(2)
The
interest
expense
was
originally
paid
or
accrued
during
a
tax
year
in
which
the
taxpayer
was
not
required
to
file
an
Iowa
return.
Sec.
78.
Section
422.35,
Code
2020,
is
amended
by
adding
the
following
new
subsections:
NEW
SUBSECTION
.
26.
a.
Section
163(j)
of
the
Internal
Revenue
Code
does
not
apply
in
computing
net
income
for
state
tax
purposes.
If
the
taxpayer’s
federal
taxable
income
for
the
tax
year
was
increased
or
decreased
by
reason
of
the
application
of
section
163(j)
of
the
Internal
Revenue
Code,
the
taxpayer
shall
recompute
net
income
for
state
tax
purposes
under
rules
prescribed
by
the
director.
b.
Paragraph
“a”
shall
not
apply
during
any
tax
year
in
which
the
additional
first-year
depreciation
allowance
authorized
in
section
168(k)
of
the
Internal
Revenue
Code
applies
in
computing
net
income
for
state
tax
purposes.
c.
For
any
tax
year
in
which
paragraph
“a”
does
not
apply,
a
taxpayer
shall
not
be
permitted
to
deduct
any
amount
of
interest
expense
paid
or
accrued
in
a
previous
taxable
year
that
is
allowed
as
a
deduction
in
the
current
taxable
year
by
reason
of
the
carryforward
of
disallowed
business
interest
provisions
of
section
163(j)(2)
of
the
Internal
Revenue
Code,
if
either
of
the
following
apply:
House
File
2641,
p.
50
(1)
The
interest
expense
was
originally
paid
or
accrued
during
a
tax
year
in
which
paragraph
“a”
applied.
(2)
The
interest
expense
was
originally
paid
or
accrued
during
a
tax
year
in
which
the
taxpayer
was
not
required
to
file
an
Iowa
return.
NEW
SUBSECTION
.
27.
Subtract,
to
the
extent
included,
global
intangible
low-taxed
income
under
section
951A
of
the
Internal
Revenue
Code.
Sec.
79.
RESCISSION
OF
ADMINISTRATIVE
RULES.
1.
Contingent
upon
the
enactment
of
the
section
of
this
Act
amending
section
422.35,
subsection
27,
the
following
Iowa
administrative
rules
are
rescinded:
a.
701
Iowa
administrative
code,
rule
54.2,
subrule
3,
paragraph
“i”.
b.
701
Iowa
administrative
code,
rule
59.28,
subrule
2,
paragraph
“p”.
2.
As
soon
as
practicable,
the
Iowa
administrative
code
editor
shall
remove
the
language
of
the
Iowa
administrative
rules
referenced
in
subsection
1
of
this
section
from
the
Iowa
administrative
code.
Sec.
80.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
Sec.
81.
RETROACTIVE
APPLICABILITY.
The
following
applies
retroactively
to
January
1,
2019,
for
tax
years
beginning
on
or
after
that
date:
The
portion
of
the
section
of
this
division
of
this
Act
enacting
section
422.35,
subsection
27.
Sec.
82.
RETROACTIVE
APPLICABILITY.
The
following
apply
retroactively
to
January
1,
2020
for
tax
years
beginning
on
or
after
that
date:
1.
The
section
of
this
division
of
this
Act
enacting
section
422.7,
subsection
59.
2.
The
portion
of
the
section
of
this
division
of
this
Act
enacting
section
422.35,
subsection
26.
DIVISION
IX
IOWA
REINVESTMENT
ACT
Sec.
83.
Section
15J.2,
subsections
4,
7,
8,
and
9,
Code
2020,
are
amended
to
read
as
follows:
4.
“District”
means
the
area
within
a
municipality
that
is
House
File
2641,
p.
51
designated
a
reinvestment
district
pursuant
to
section
15J.4
.
7.
“Municipality”
means
a
county
or
an
incorporated
city.
any
of
the
following:
a.
A
county.
b.
An
incorporated
city.
c.
A
joint
board
or
other
legal
entity
established
or
designated
in
an
agreement
between
two
or
more
contiguous
municipalities
identified
in
paragraph
“a”
or
“b”
pursuant
to
chapter
28E.
8.
a.
“New
lessor”
means
a
lessor,
as
defined
in
section
423A.2
,
operating
a
business
in
the
district
that
was
not
in
operation
in
the
area
of
the
district
before
the
effective
date
of
the
ordinance
or
resolution
establishing
the
district,
regardless
of
ownership.
b.
“New
lessor”
also
includes
any
lessor,
defined
in
section
423A.2
,
operating
a
business
in
the
district
if
the
place
of
business
for
that
business
is
the
subject
of
a
project
that
was
approved
by
the
board.
9.
a.
“New
retail
establishment”
means
a
business
operated
in
the
district
by
a
retailer,
as
defined
in
section
423.1
,
that
was
not
in
operation
in
the
area
of
the
district
before
the
effective
date
of
the
ordinance
or
resolution
establishing
the
district,
regardless
of
ownership.
b.
“New
retail
establishment”
also
includes
any
business
operated
in
the
district
by
a
retailer,
as
defined
in
section
423.1
,
if
the
place
of
business
for
that
retail
establishment
is
the
subject
of
a
project
that
was
approved
by
the
board.
Sec.
84.
Section
15J.4,
subsection
1,
unnumbered
paragraph
1,
Code
2020,
is
amended
to
read
as
follows:
A
municipality
that
has
an
area
suitable
for
development
within
the
boundaries
of
the
municipality
or
within
the
combined
boundaries
of
a
municipality
under
section
15J.2,
subsection
7,
paragraph
“c”
,
is
eligible
to
seek
approval
from
the
board
to
establish
a
reinvestment
district
under
this
section
consisting
of
the
area
suitable
for
development.
To
be
designated
a
reinvestment
district,
an
area
shall
meet
the
following
requirements:
Sec.
85.
Section
15J.4,
subsection
1,
paragraphs
c
and
d,
Code
2020,
are
amended
to
read
as
follows:
House
File
2641,
p.
52
c.
The
For
districts
approved
before
July
1,
2018,
the
area
consists
of
contiguous
parcels
and
does
not
exceed
twenty-five
acres
in
total.
For
districts
approved
on
or
after
July
1,
2020,
the
area
consists
of
contiguous
parcels
and
does
not
exceed
seventy-five
acres
in
total.
d.
For
a
municipality
that
is
a
city
or
for
a
city
that
is
party
to
an
agreement
under
section
15J.2,
subsection
7,
paragraph
“c”
,
the
area
does
not
include
the
entire
incorporated
area
of
the
city.
Sec.
86.
Section
15J.4,
subsection
3,
paragraph
a,
Code
2020,
is
amended
to
read
as
follows:
a.
The
municipality
shall
submit
a
copy
of
the
resolution,
the
proposed
district
plan,
and
all
accompanying
materials
adopted
pursuant
to
this
section
to
the
board
for
evaluation.
The
board
shall
not
approve
a
proposed
district
plan
on
or
after
July
1,
2018
2025
.
Sec.
87.
Section
15J.4,
subsection
3,
paragraph
b,
subparagraph
(6),
Code
2020,
is
amended
to
read
as
follows:
(6)
The
amount
of
proposed
capital
investment
within
the
proposed
district
related
to
retail
businesses
in
the
proposed
district
does
not
exceed
fifty
percent
of
the
total
capital
investment
for
all
proposed
projects
in
the
proposed
district
plan.
For
the
purposes
of
this
subparagraph,
“retail
business”
means
any
business
engaged
in
the
business
of
selling
tangible
personal
property
or
taxable
services
at
retail
in
this
state
that
is
obligated
to
collect
state
sales
or
use
tax
under
chapter
423
.
However,
for
the
purposes
of
this
subparagraph,
“retail
business”
does
not
include
a
new
lessor
or
a
business
engaged
in
an
activity
subject
to
tax
under
section
423.2,
subsection
3
.
Sec.
88.
Section
15J.4,
subsection
3,
paragraph
f,
Code
2020,
is
amended
to
read
as
follows:
f.
(1)
The
total
aggregate
amount
of
state
sales
tax
revenues
and
state
hotel
and
motel
tax
revenues
that
may
be
approved
by
the
board
for
remittance
to
all
municipalities
and
that
may
be
transferred
to
the
state
reinvestment
district
fund
under
section
423.2A
or
423A.6
,
and
remitted
to
all
municipalities
having
a
reinvestment
district
under
this
chapter
for
districts
approved
by
the
board
before
July
1,
House
File
2641,
p.
53
2018,
shall
not
exceed
one
hundred
million
dollars.
(2)
The
total
aggregate
amount
of
state
sales
tax
revenues
and
state
hotel
and
motel
tax
revenues
that
may
be
approved
by
the
board
for
remittance
to
all
municipalities
and
that
may
be
transferred
to
the
state
reinvestment
district
fund
under
section
423.2A
or
423A.6,
and
remitted
to
all
municipalities
having
a
reinvestment
district
under
this
chapter
for
districts
approved
on
or
after
July
1,
2020,
but
before
July
1,
2025,
shall
not
exceed
one
hundred
million
dollars.
Sec.
89.
Section
15J.4,
subsections
4
and
5,
Code
2020,
are
amended
to
read
as
follows:
4.
a.
Upon
receiving
the
approval
of
the
board,
the
municipality
may
shall
adopt
an
ordinance
,
or
in
the
case
of
a
municipality
under
section
15J.2,
subsection
7,
paragraph
“c”
,
a
resolution,
establishing
the
district
and
shall
notify
the
director
of
revenue
of
the
district’s
commencement
date
established
by
the
board
and
the
information
required
under
paragraph
“b”
no
later
than
thirty
days
after
adoption
of
the
ordinance
or
resolution
.
b.
For
each
district
approved
by
the
board
on
or
after
July
1,
2020,
the
municipality
shall
include
in
the
notification
under
paragraph
“a”
and
in
the
statement
required
under
paragraph
“c”
all
of
the
following:
(1)
For
each
new
retail
establishment
under
section
15J.2,
subsection
9,
paragraph
“b”
,
that
was
in
operation
before
the
establishment
of
the
district,
the
monthly
amount
of
sales
subject
to
the
state
sales
tax
from
the
most
recently
available
twelve-month
period
preceding
the
establishment
of
the
district.
(2)
For
each
new
lessor
under
section
15J.2,
subsection
8,
paragraph
“b”
,
that
was
in
operation
before
the
establishment
of
the
district,
the
monthly
amount
of
sales
subject
to
the
state
hotel
and
motel
tax
from
the
most
recently
available
twelve-month
period
preceding
the
establishment
of
the
district.
c.
The
ordinance
or
resolution
adopted
by
the
municipality
shall
include
the
district’s
commencement
date
and
a
detailed
statement
of
the
manner
in
which
the
approved
projects
to
be
undertaken
in
the
district
will
be
financed,
including
but
not
House
File
2641,
p.
54
limited
to
the
financial
information
included
in
the
project
plan
under
subsection
2
,
paragraph
“d”
.
d.
Following
establishment
of
the
district,
a
municipality
may
use
the
moneys
deposited
in
the
municipality’s
reinvestment
project
fund
created
pursuant
to
section
15J.7
to
fund
the
development
of
those
projects
included
within
the
district
plan.
5.
A
municipality
may
amend
the
district
plan
to
add
or
modify
projects.
However,
a
proposed
modification
to
a
project
and
each
project
proposed
to
be
added
shall
first
be
approved
by
the
board
in
the
same
manner
as
provided
for
the
original
plan.
In
no
case,
however,
shall
an
amendment
to
the
district
plan
result
in
the
extension
of
the
commencement
date
established
by
the
board.
If
a
district
plan
is
amended
to
add
or
modify
a
project,
the
municipality
shall
,
if
necessary,
amend
the
ordinance
or
resolution,
as
applicable
,
if
necessary,
to
reflect
any
changes
to
the
financial
information
required
to
be
included
under
subsection
4
.
Sec.
90.
Section
15J.5,
subsection
1,
paragraph
b,
Code
2020,
is
amended
to
read
as
follows:
b.
(1)
The
For
districts
established
before
July
1,
2020,
the
amount
of
new
state
sales
tax
revenue
for
purposes
of
paragraph
“a”
shall
be
the
product
of
the
amount
of
sales
subject
to
the
state
sales
tax
in
the
district
during
the
quarter
from
new
retail
establishments
times
four
percent.
(2)
For
districts
established
on
or
after
July
1,
2020,
the
amount
of
new
state
sales
tax
revenue
for
purposes
of
paragraph
“a”
shall
be
the
product
of
four
percent
times
the
remainder
of
amount
of
sales
subject
to
the
state
sales
tax
in
the
district
during
the
quarter
from
new
retail
establishments
minus
the
sum
of
the
sales
from
the
corresponding
quarter
of
the
twelve-month
period
determined
under
section
15J.4,
subsection
4,
paragraph
“b”
,
subparagraph
(1),
for
new
retail
establishments
identified
under
section
15J.4,
subsection
4,
paragraph
“b”
,
subparagraph
(1),
that
were
in
operation
at
the
end
of
the
quarter.
Sec.
91.
Section
15J.5,
subsection
2,
paragraph
b,
Code
2020,
is
amended
to
read
as
follows:
b.
(1)
The
For
districts
established
before
July
1,
2020,
the
amount
of
new
state
hotel
and
motel
tax
revenue
for
House
File
2641,
p.
55
purposes
of
paragraph
“a”
shall
be
the
product
of
the
amount
of
sales
subject
to
the
state
hotel
and
motel
tax
in
the
district
during
the
quarter
from
new
lessors
times
the
state
hotel
and
motel
tax
rate
imposed
under
section
423A.3
.
(2)
For
districts
established
on
or
after
July
1,
2020,
the
amount
of
new
state
hotel
and
motel
tax
revenue
for
purposes
of
paragraph
“a”
shall
be
the
product
of
the
state
hotel
and
motel
tax
rate
imposed
under
section
423A.3
times
the
remainder
of
amount
of
sales
subject
to
the
state
hotel
and
motel
tax
in
the
district
during
the
quarter
from
new
lessors
minus
the
sum
of
the
sales
from
the
corresponding
quarter
of
the
twelve
month
period
determined
under
section
15J.4,
subsection
4,
paragraph
“b”
,
subparagraph
(2),
for
new
lessors
identified
under
section
15J.4,
subsection
4,
paragraph
“b”
,
subparagraph
(2),
that
were
in
operation
at
the
end
of
the
quarter.
Sec.
92.
Section
15J.7,
subsection
4,
paragraph
b,
Code
2020,
is
amended
to
read
as
follows:
b.
For
the
purposes
of
this
subsection
,
“relocation”
means
the
closure
or
substantial
reduction
of
an
enterprise’s
existing
operations
in
one
area
of
the
state
and
the
initiation
of
substantially
the
same
operation
in
the
same
county
or
a
contiguous
county
in
the
state.
However,
if
the
initiation
of
operations
includes
an
expanded
scope
or
nature
of
the
enterprise’s
existing
operations,
the
new
operation
shall
not
be
considered
to
be
substantially
the
same
operation.
“Relocation”
does
not
include
an
enterprise
expanding
its
operations
in
another
area
of
the
state
provided
that
existing
operations
of
a
similar
nature
are
not
closed
or
substantially
reduced.
Sec.
93.
Section
15J.7,
subsection
6,
Code
2020,
is
amended
to
read
as
follows:
6.
Upon
dissolution
of
a
district
pursuant
to
section
15J.8
,
moneys
remaining
in
the
reinvestment
project
fund
that
were
deposited
pursuant
to
subsection
2
and
all
interest
remaining
in
the
fund
that
was
earned
on
such
amounts
shall
be
deposited
in
the
general
fund
of
the
municipality
or,
for
a
municipality
under
section
15J.2,
subsection
7,
paragraph
“c”
,
the
governing
body
shall
allocate
such
amounts
to
the
participating
cities
and
counties
for
deposit
in
each
city
or
county
general
fund
House
File
2641,
p.
56
according
to
the
chapter
28E
agreement
.
Sec.
94.
Section
15J.8,
Code
2020,
is
amended
to
read
as
follows:
15J.8
End
of
deposits
——
district
dissolution.
1.
As
of
the
date
twenty
years
after
the
district’s
commencement
date,
the
department
shall
cease
to
deposit
state
sales
tax
revenues
and
state
hotel
and
motel
tax
revenues
into
the
district’s
account
within
the
fund,
unless
the
municipality
dissolves
the
district
by
ordinance
or
resolution
prior
to
that
date.
Following
the
expiration
of
the
twenty-year
period,
the
district
shall
be
dissolved
by
ordinance
or
resolution
of
the
municipality
adopted
within
twelve
months
of
the
conclusion
of
the
twenty-year
period.
2.
If
the
municipality
dissolves
the
district
by
ordinance
or
resolution
prior
to
the
expiration
of
the
twenty-year
period
specified
in
subsection
1
,
the
municipality
shall
notify
the
director
of
revenue
of
the
dissolution
as
soon
as
practicable
after
adoption
of
the
ordinance
or
resolution
,
and
the
department
shall,
as
of
the
effective
date
of
dissolution,
cease
to
deposit
state
sales
tax
revenues
and
state
hotel
and
motel
tax
revenues
into
the
district’s
account
within
the
fund.
3.
Upon
request
of
the
municipality
prior
to
the
dissolution
of
the
district,
and
following
a
determination
by
the
board
that
the
amounts
of
new
state
sales
tax
revenue
and
new
state
hotel
and
motel
tax
revenue
deposited
in
the
municipality’s
reinvestment
project
fund
under
section
15J.7
are
substantially
lower
than
the
amounts
established
by
the
board
under
section
15J.4,
subsection
3,
paragraph
“e”
,
the
board
may
extend
the
district’s
twenty-year
period
of
time
for
depositing
and
receiving
revenues
under
this
chapter
by
up
to
five
additional
years
if
such
an
extension
is
in
the
best
interest
of
the
public.
DIVISION
X
COMPUTER
PERIPHERALS
Sec.
95.
Section
423.1,
Code
2020,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
10A.
“Computer
peripheral”
means
an
ancillary
device
connected
to
the
computer
digitally,
by
cable,
or
by
other
medium,
used
to
put
information
into
or
get
House
File
2641,
p.
57
information
out
of
a
computer.
Sec.
96.
Section
423.3,
subsection
47,
Code
2020,
is
amended
to
read
as
follows:
47.
a.
The
sales
price
from
the
sale
or
rental
of
computers,
computer
peripherals,
machinery,
equipment,
replacement
parts,
supplies,
and
materials
used
to
construct
or
self-construct
computers,
computer
peripherals,
machinery,
equipment,
replacement
parts,
and
supplies,
if
such
items
are
any
of
the
following:
(1)
Directly
and
primarily
used
in
processing
by
a
manufacturer.
(2)
Directly
and
primarily
used
to
maintain
the
integrity
of
the
product
or
to
maintain
unique
environmental
conditions
required
for
either
the
product
or
the
computers,
computer
peripherals,
machinery,
and
equipment
used
in
processing
by
a
manufacturer,
including
test
equipment
used
to
control
quality
and
specifications
of
the
product.
(3)
Directly
and
primarily
used
in
research
and
development
of
new
products
or
processes
of
processing.
(4)
Computers
and
computer
peripherals
used
in
processing
or
storage
of
data
or
information
by
an
insurance
company,
financial
institution,
or
commercial
enterprise.
(5)
Directly
and
primarily
used
in
recycling
or
reprocessing
of
waste
products.
(6)
Pollution-control
equipment
used
by
a
manufacturer,
including
but
not
limited
to
that
required
or
certified
by
an
agency
of
this
state
or
of
the
United
States
government.
b.
The
sales
price
from
the
sale
of
fuel
used
in
creating
heat,
power,
steam,
or
for
generating
electrical
current,
or
from
the
sale
of
electricity,
consumed
by
computers,
computer
peripherals,
machinery,
or
equipment
used
in
an
exempt
manner
described
in
paragraph
“a”
,
subparagraph
(1),
(2),
(3),
(5),
or
(6).
c.
The
sales
price
from
the
sale
or
rental
of
the
following
shall
not
be
exempt
from
the
tax
imposed
by
this
subchapter
:
(1)
Hand
tools.
(2)
Point-of-sale
equipment
,
and
computers
,
and
computer
peripherals
.
(3)
The
following
within
the
scope
of
section
427A.1,
House
File
2641,
p.
58
subsection
1
,
paragraphs
“h”
and
“i”
:
(a)
Computers.
(b)
Computer
peripherals.
(b)
(c)
Machinery.
(c)
(d)
Equipment,
including
pollution
control
equipment.
(d)
(e)
Replacement
parts.
(e)
(f)
Supplies.
(f)
(g)
Materials
used
to
construct
or
self-construct
the
following:
(i)
Computers.
(ii)
Computer
peripherals.
(ii)
(iii)
Machinery.
(iii)
(iv)
Equipment,
including
pollution
control
equipment.
(iv)
(v)
Replacement
parts.
(v)
(vi)
Supplies.
(4)
Vehicles
subject
to
registration,
except
vehicles
subject
to
registration
which
are
directly
and
primarily
used
in
recycling
or
reprocessing
of
waste
products.
d.
As
used
in
this
subsection
:
(1)
“Commercial
enterprise”
means
businesses
and
manufacturers
conducted
for
profit,
for-profit
and
nonprofit
insurance
companies,
and
for-profit
and
nonprofit
financial
institutions,
but
excludes
other
nonprofits
and
professions
and
occupations.
(2)
“Financial
institution”
means
as
defined
in
section
527.2
.
(3)
“Insurance
company”
means
an
insurer
organized
or
operating
under
chapter
508
,
514
,
515
,
518
,
518A
,
519
,
or
520
,
or
authorized
to
do
business
in
Iowa
as
an
insurer
or
an
insurance
producer
under
chapter
522B
.
(4)
(a)
“Manufacturer”
means
a
business
that
primarily
purchases,
receives,
or
holds
personal
property
of
any
description
for
the
purpose
of
adding
to
its
value
by
a
process
of
manufacturing
with
a
view
to
selling
the
property
for
gain
or
profit.
(b)
“Manufacturer”
includes
contract
manufacturers.
A
contract
manufacturer
is
a
manufacturer
that
otherwise
falls
within
the
definition
of
manufacturer,
except
that
a
contract
House
File
2641,
p.
59
manufacturer
does
not
sell
the
tangible
personal
property
the
contract
manufacturer
processes
on
behalf
of
other
manufacturers.
(c)
“Manufacturer”
does
not
include
persons
who
are
not
commonly
understood
as
manufacturers,
including
but
not
limited
to
persons
primarily
engaged
in
any
of
the
following
activities:
(i)
Construction
contracting.
(ii)
Repairing
tangible
personal
property
or
real
property.
(iii)
Providing
health
care.
(iv)
Farming,
including
cultivating
agricultural
products
and
raising
livestock.
(v)
Transporting
for
hire.
(d)
For
purposes
of
this
subparagraph:
(i)
“Business”
means
those
businesses
conducted
for
profit,
but
excludes
professions
and
occupations
and
nonprofit
organizations.
(ii)
“Manufacturing”
means
those
activities
commonly
understood
within
the
ordinary
meaning
of
the
term,
and
shall
include:
(A)
Refining.
(B)
Purifying.
(C)
Combining
of
different
materials.
(D)
Packing
of
meats.
(E)
Activities
subsequent
to
the
extractive
process
of
quarrying
or
mining,
such
as
crushing,
washing,
sizing,
or
blending
of
aggregate
materials.
(iii)
“Manufacturing”
does
not
include
activities
occurring
on
premises
primarily
used
to
make
retail
sales.
(5)
“Processing”
means
a
series
of
operations
in
which
materials
are
manufactured,
refined,
purified,
created,
combined,
or
transformed
by
a
manufacturer,
ultimately
into
tangible
personal
property.
Processing
encompasses
all
activities
commencing
with
the
receipt
or
producing
of
raw
materials
by
the
manufacturer
and
ending
at
the
point
products
are
delivered
for
shipment
or
transferred
from
the
manufacturer.
Processing
includes
but
is
not
limited
to
refinement
or
purification
of
materials;
treatment
of
materials
to
change
their
form,
context,
or
condition;
maintenance
House
File
2641,
p.
60
of
the
quality
or
integrity
of
materials,
components,
or
products;
maintenance
of
environmental
conditions
necessary
for
materials,
components,
or
products;
quality
control
activities;
and
construction
of
packaging
and
shipping
devices,
placement
into
shipping
containers
or
any
type
of
shipping
devices
or
medium,
and
the
movement
of
materials,
components,
or
products
until
shipment
from
the
processor.
(6)
“Receipt
or
producing
of
raw
materials”
means
activities
performed
upon
tangible
personal
property
only.
With
respect
to
raw
materials
produced
from
or
upon
real
estate,
the
receipt
or
producing
of
raw
materials
is
deemed
to
occur
immediately
following
the
severance
of
the
raw
materials
from
the
real
estate.
(7)
“Replacement
part”
means
tangible
personal
property
other
than
computers,
computer
peripherals,
machinery,
equipment,
or
supplies,
regardless
of
the
cost
or
useful
life
of
the
tangible
personal
property,
that
meets
all
of
the
following
conditions:
(a)
The
tangible
personal
property
replaces
a
component
of
a
computer,
computer
peripheral,
machinery,
or
equipment,
which
component
is
capable
of
being
separated
from
the
computer,
computer
peripheral,
machinery,
or
equipment.
(b)
The
tangible
personal
property
performs
the
same
or
similar
function
as
the
component
it
replaced.
(c)
The
tangible
personal
property
restores
the
computer,
computer
peripheral,
machinery,
or
equipment
to
an
operational
condition,
or
upgrades
or
improves
the
efficiency
of
the
computer,
computer
peripheral,
machinery,
or
equipment.
(8)
“Supplies”
means
tangible
personal
property,
other
than
computers,
computer
peripherals,
machinery,
equipment,
or
replacement
parts,
that
meets
one
of
the
following
conditions:
(a)
The
tangible
personal
property
is
to
be
connected
to
a
computer,
computer
peripheral,
machinery,
or
equipment
and
requires
regular
replacement
because
the
property
is
consumed
or
deteriorates
during
use,
including
but
not
limited
to
saw
blades,
drill
bits,
filters,
and
other
similar
items
with
a
short
useful
life.
(b)
The
tangible
personal
property
is
used
in
conjunction
with
a
computer,
computer
peripheral,
machinery,
or
equipment
House
File
2641,
p.
61
and
is
specially
designed
for
use
in
manufacturing
specific
products
and
may
be
used
interchangeably
and
intermittently
on
a
particular
computer,
computer
peripheral,
machine,
or
piece
of
equipment,
including
but
not
limited
to
jigs,
dies,
tools,
and
other
similar
items.
(c)
The
tangible
personal
property
comes
into
physical
contact
with
other
tangible
personal
property
used
in
processing
and
is
used
to
assist
with
or
maintain
conditions
necessary
for
processing,
including
but
not
limited
to
cutting
fluids,
oils,
coolants,
lubricants,
and
other
similar
items
with
a
short
useful
life.
(d)
The
tangible
personal
property
is
directly
and
primarily
used
in
an
activity
described
in
paragraph
“a”
,
subparagraphs
(1)
through
(6),
including
but
not
limited
to
prototype
materials
and
testing
materials.
Sec.
97.
RESCISSION
OF
ADMINISTRATIVE
RULES.
1.
The
following
Iowa
administrative
rules
are
rescinded
as
of
July
1,
2020:
a.
701
Iowa
administrative
code,
rule
18.34,
subrule
1,
paragraph
“b”,
subparagraph
(1).
b.
701
Iowa
administrative
code,
rule
18.45,
subrule
1,
definition
of
“computer”.
c.
701
Iowa
administrative
code,
rule
18.58,
subrule
1,
definition
of
“computer”.
d.
701
Iowa
administrative
code,
rule
230.14,
subrule
2,
paragraph
“a”.
2.
As
soon
as
practicable
after
July
1,
2020,
the
Iowa
administrative
code
editor
shall
remove
the
language
of
the
Iowa
administrative
rules
referenced
in
subsection
1
of
this
section
from
the
Iowa
administrative
code.
DIVISION
XI
SCHOOL
TUITION
ORGANIZATION
TAX
CREDIT
Sec.
98.
Section
422.11S,
subsection
8,
paragraph
a,
subparagraph
(2),
Code
2020,
is
amended
to
read
as
follows:
(2)
(a)
“Total
approved
tax
credits”
means
for
the
2006
calendar
year,
two
million
five
hundred
thousand
dollars,
for
the
2007
calendar
year,
five
million
dollars,
for
calendar
years
beginning
on
or
after
January
1,
2008,
but
before
January
1,
2012,
seven
million
five
hundred
thousand
dollars,
for
House
File
2641,
p.
62
calendar
years
beginning
on
or
after
January
1,
2012,
but
before
January
1,
2014,
eight
million
seven
hundred
fifty
thousand
dollars,
for
calendar
years
beginning
on
or
after
January
1,
2014,
but
before
January
1,
2019,
twelve
million
dollars,
and
for
calendar
years
beginning
on
or
after
January
1,
2019,
but
before
January
1,
2020,
thirteen
million
dollars,
and
for
calendar
years
beginning
on
or
after
January
1,
2020,
fifteen
million
dollars.
(b)
(i)
During
any
calendar
year
beginning
on
or
after
January
1,
2022,
if
the
amount
of
awarded
tax
credits
from
the
preceding
calendar
year
are
equal
to
or
greater
than
ninety
percent
of
the
total
approved
tax
credits
for
the
current
calendar
year,
the
total
approved
tax
credits
for
the
current
calendar
year
shall
equal
the
product
of
ten
percent
multiplied
by
the
total
approved
tax
credits
for
the
current
calendar
year
plus
the
total
approved
tax
credits
for
the
current
calendar
year.
(ii)
If
total
approved
tax
credits
are
recomputed
pursuant
to
subparagraph
subdivision
(i),
the
total
approved
tax
credits
shall
equal
the
previous
total
approved
tax
credits
recomputed
pursuant
to
subparagraph
subdivision
(i)
for
purposes
of
future
recomputations
under
subparagraph
subdivision
(i),
provided
that
the
maximum
total
approved
tax
credits
recomputed
pursuant
to
this
subparagraph
division
(b)
shall
not
exceed
twenty
million
dollars
in
a
calendar
year.
Sec.
99.
Section
422.33,
subsection
28,
Code
2020,
is
amended
to
read
as
follows:
28.
The
taxes
imposed
under
this
division
shall
be
reduced
by
a
school
tuition
organization
tax
credit
allowed
under
section
422.11S
.
The
maximum
amount
of
tax
credits
that
may
be
approved
under
this
subsection
for
a
tax
year
equals
twenty-five
percent
of
the
school
tuition
organization’s
tax
credits
that
may
be
approved
pursuant
to
section
422.11S,
subsection
8
,
for
a
tax
year.
DIVISION
XII
BROADBAND
INFRASTRUCTURE
TAXATION
Sec.
100.
Section
422.7,
Code
2020,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
18.
a.
Subtract,
to
the
extent
included,
House
File
2641,
p.
63
the
amount
of
a
federal,
state,
or
local
grant
provided
to
a
communications
service
provider,
if
the
grant
is
used
to
install
broadband
infrastructure
that
facilitates
broadband
service
in
targeted
service
areas
at
or
above
the
download
and
upload
speeds.
b.
As
used
in
this
subsection,
“broadband
infrastructure”
,
“communications
service
provider”
,
and
“targeted
service
area”
mean
the
same
as
defined
in
section
8B.1,
respectively.
Sec.
101.
Section
422.35,
Code
2020,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
26.
a.
Subtract,
to
the
extent
included,
the
amount
of
a
federal,
state,
or
local
grant
provided
to
a
communications
service
provider,
if
the
grant
is
used
to
install
broadband
infrastructure
that
facilitates
broadband
service
in
targeted
service
areas
at
or
above
the
download
and
upload
speeds.
b.
As
used
in
this
subsection,
“broadband
infrastructure”
,
“communications
service
provider”
,
and
“targeted
service
area”
mean
the
same
as
defined
in
section
8B.1,
respectively.
Sec.
102.
REFUNDS.
Refunds
of
taxes,
interest,
or
penalties
that
arise
from
claims
resulting
from
the
enactment
of
this
division
of
this
Act,
in
the
tax
year
beginning
January
1,
2019,
but
before
January
1,
2020,
shall
not
be
allowed
unless
refund
claims
are
filed
prior
to
October
1,
2020,
notwithstanding
any
other
provision
of
law
to
the
contrary.
Sec.
103.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
Sec.
104.
RETROACTIVE
APPLICABILITY.
This
division
of
this
Act
applies
retroactively
to
January
1,
2019,
and
applies
to
tax
years
beginning
on
or
after
that
date.
DIVISION
XIII
LOCAL
ASSESSORS
Sec.
105.
Section
441.6,
subsection
2,
Code
2020,
is
amended
to
read
as
follows:
2.
Upon
receipt
of
the
report
of
the
examining
board,
the
chairperson
of
the
conference
board
shall
by
written
notice
call
a
meeting
of
the
conference
board
to
appoint
an
assessor.
The
meeting
shall
be
held
not
later
than
seven
days
after
the
receipt
of
the
report
of
the
examining
board
by
the
conference
House
File
2641,
p.
64
board.
At
the
meeting,
the
conference
board
shall
appoint
an
assessor
from
the
register
of
eligible
candidates.
However,
if
a
special
examination
has
not
been
conducted
previously
for
the
same
vacancy,
the
conference
board
may
request
the
director
of
revenue
to
hold
a
special
examination
pursuant
to
section
441.7
.
The
chairperson
of
the
conference
board
shall
give
written
notice
to
the
director
of
revenue
of
the
appointment
and
its
effective
date
within
ten
days
of
the
decision
of
the
board.
Sec.
106.
Section
441.6,
Code
2020,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
3.
The
appointee
selected
by
the
conference
board
under
subsection
2
shall
not
assume
the
office
of
city
or
county
assessor
until
such
appointment
is
confirmed
by
the
director
of
revenue.
If
the
director
of
revenue
rejects
the
appointment,
the
examining
board
shall
conduct
a
new
examination
and
submit
a
new
report
to
the
conference
board
under
subsection
1.
The
director
of
revenue
shall
adopt
rules
pursuant
to
chapter
17A
to
implement
and
administer
this
subsection.
Sec.
107.
Section
441.17,
subsection
2,
Code
2020,
is
amended
to
read
as
follows:
2.
Cause
to
be
assessed,
in
accordance
with
section
441.21
,
all
the
property
in
the
assessor’s
county
or
city,
except
property
exempt
from
taxation,
or
the
assessment
of
which
is
otherwise
provided
for
by
law.
However,
an
assessor
or
deputy
assessor
shall
not
personally
assess
a
property
if
the
person
or
a
member
of
the
person’s
immediate
family
owns
the
property,
has
a
financial
interest
in
the
property,
or
has
a
financial
interest
in
the
entity
that
owns
the
property.
The
director
of
revenue
shall
adopt
rules
pursuant
to
chapter
17A
to
implement
and
administer
this
subsection.
Sec.
108.
Section
441.41,
Code
2020,
is
amended
to
read
as
follows:
441.41
Legal
counsel.
In
the
case
of
cities
having
an
assessor,
the
city
legal
department
shall
represent
the
assessor
and
board
of
review
in
all
litigation
dealing
with
assessments.
In
the
case
of
counties,
the
county
attorney
shall
represent
the
assessor
and
House
File
2641,
p.
65
board
of
review
in
all
litigation
dealing
with
assessments.
Any
taxing
district
interested
in
the
taxes
received
from
such
assessments
may
be
represented
by
an
attorney
and
shall
be
required
to
appear
by
attorney
upon
written
request
of
the
assessor
to
the
presiding
officer
of
any
such
taxing
district.
The
Subject
to
review
and
prior
approval
by
either
the
city
legal
department
in
the
case
of
a
city
or
the
county
attorney
in
the
case
of
a
county,
the
conference
board
may
employ
special
counsel
to
assist
the
city
legal
department
or
county
attorney
as
the
case
may
be.
DIVISION
XIV
PAYCHECK
PROTECTION
PROGRAM
(PPP)
Sec.
109.
IOWA
NET
INCOME
EXCLUSION
FOR
FEDERAL
PAYCHECK
PROTECTION
PROGRAM
LOAN
FORGIVENESS
FOR
CERTAIN
FISCAL-YEAR
FILERS
IN
TAX
YEAR
2019.
Notwithstanding
any
other
provision
of
law
to
the
contrary,
for
any
tax
year
beginning
on
or
after
January
1,
2019,
and
ending
after
March
27,
2020,
Pub.
L.
No.
116-136,
§1106(i),
applies
in
computing
net
income
for
state
tax
purposes
under
section
422.7
or
422.35.
Sec.
110.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
DIVISION
XV
IOWA
INCOME
TAX
EXCLUSION
——
EMERGENCY
STUDENT
GRANT
MONEY
Sec.
111.
Section
422.7,
Code
2020,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
59.
Notwithstanding
any
other
provision
of
law
to
the
contrary,
any
funds
received
by
a
student
through
a
higher
education
institution
to
support
the
student’s
financial
needs
as
a
result
of
the
COVID-19
pandemic
pursuant
to
§§3504,
18004,
or
18008
of
Pub.
L.
No.
116-136
shall
not
be
included
in
the
student’s
Iowa
net
income
for
any
tax
year
ending
after
March
27,
2020.
Sec.
112.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
Sec.
113.
RETROACTIVE
APPLICABILITY.
This
division
of
this
Act
applies
retroactively
to
March
27,
2020,
for
tax
years
ending
on
or
after
that
date.
DIVISION
XVI
IOWA
INCOME
TAX
EXCLUSION
——
STIMULUS
CHECKS
House
File
2641,
p.
66
Sec.
114.
IOWA
INCOME
TAX
EXCLUSION
FOR
ECONOMIC
IMPACT
PAYMENTS.
In
determining
the
amount
of
deduction
for
federal
income
tax
under
section
422.9
for
tax
years
beginning
in
the
2020
calendar
year,
the
amount
of
the
deduction
for
the
tax
year
shall
not
be
adjusted
by
the
amount
received
during
the
tax
year
of
the
income
tax
rebate
provided
pursuant
to
the
federal
Recovery
Rebates
and
Coronavirus
Aid,
Relief,
and
Economic
Security
Act,
Pub.
L.
No.
116-136,
§2201,
and
the
amount
of
such
income
tax
rebate
shall
not
be
subject
to
taxation
under
chapter
422,
division
II.
DIVISION
XVII
PRO
RATA
SHARE
OF
ENTITY-LEVEL
INCOME
TAX
PAID
BY
SHAREHOLDERS
OR
BENEFICIARIES
Sec.
115.
Section
422.8,
subsection
1,
Code
2020,
is
amended
to
read
as
follows:
1.
a.
The
amount
of
income
tax
paid
to
another
state
or
foreign
country
by
a
resident
taxpayer
of
this
state
on
income
derived
from
sources
outside
of
Iowa
shall
be
allowed
as
a
credit
against
the
tax
computed
under
this
chapter
,
except
that
the
credit
shall
not
exceed
what
the
amount
of
the
Iowa
tax
would
have
been
on
the
same
income
which
was
taxed
by
the
other
state
or
foreign
country.
The
limitation
on
this
credit
shall
be
computed
according
to
the
following
formula:
Income
earned
outside
of
Iowa
and
taxed
by
another
state
or
foreign
country
shall
be
divided
by
the
total
income
of
the
resident
taxpayer
of
Iowa.
This
quotient
multiplied
times
by
the
net
Iowa
tax
as
determined
on
the
total
income
of
the
taxpayer
as
if
entirely
earned
in
Iowa
shall
be
the
maximum
tax
credit
against
the
Iowa
net
tax.
b.
(1)
For
purposes
of
paragraph
“a”
,
a
resident
partner
of
an
entity
taxed
as
a
partnership
for
federal
tax
purposes,
a
resident
shareholder
of
an
S
corporation,
or
a
resident
beneficiary
of
an
estate
or
trust
shall
be
deemed
to
have
paid
the
resident
partner’s,
resident
shareholder’s,
or
resident
beneficiary’s
pro
rata
share
of
entity-level
income
tax
paid
by
the
partnership,
S
corporation,
estate,
or
trust
to
another
state
or
foreign
country
on
income
that
is
also
subject
to
tax
under
this
division,
but
only
if
the
entity
provides
the
resident
partner,
resident
shareholder,
or
resident
beneficiary
House
File
2641,
p.
67
a
statement
that
documents
the
resident
partner’s,
resident
shareholder’s,
or
resident
beneficiary’s
share
of
the
income
derived
in
the
other
state
or
foreign
country,
the
income
tax
liability
of
the
entity
in
that
state
or
foreign
country,
and
the
income
tax
paid
by
the
entity
to
that
state
or
foreign
country.
(2)
For
purposes
of
paragraph
“a”
,
a
resident
shareholder
of
a
regulated
investment
company
shall
be
deemed
to
have
paid
the
shareholder’s
pro
rata
share
of
entity-level
income
tax
paid
by
the
regulated
investment
company
to
another
state
or
foreign
country
and
treated
as
paid
by
its
shareholders
pursuant
to
section
853
of
the
Internal
Revenue
Code,
but
only
if
the
regulated
investment
company
provides
the
resident
shareholder
a
statement
that
documents
the
resident
shareholder’s
share
of
the
income
derived
in
the
other
state
or
foreign
country,
the
income
tax
liability
of
the
regulated
investment
company
in
that
state
or
foreign
country,
and
the
income
tax
paid
by
the
regulated
investment
company
to
that
state
or
foreign
country.
Sec.
116.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
Sec.
117.
RETROACTIVE
APPLICABILITY.
This
division
of
this
Act
applies
retroactively
to
January
1,
2020,
for
tax
years
beginning
on
or
after
that
date.
DIVISION
XVIII
IOWA
SMALL
BUSINESS
RELIEF
GRANT
PROGRAM
Sec.
118.
Section
422.7,
Code
2020,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
59.
Subtract,
to
the
extent
included,
the
amount
of
any
financial
assistance
grant
provided
to
an
eligible
small
business
by
the
economic
development
authority
under
the
Iowa
small
business
relief
grant
program
created
during
calendar
year
2020
to
provide
financial
assistance
to
eligible
small
businesses
economically
impacted
by
the
COVID-19
pandemic.
Sec.
119.
Section
422.35,
Code
2020,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
26.
Subtract,
to
the
extent
included,
the
amount
of
any
financial
assistance
grant
provided
to
an
eligible
small
business
by
the
economic
development
authority
House
File
2641,
p.
68
under
the
Iowa
small
business
relief
grant
program
created
during
calendar
year
2020
to
provide
financial
assistance
to
eligible
small
businesses
economically
impacted
by
the
COVID-19
pandemic.
Sec.
120.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
Sec.
121.
RETROACTIVE
APPLICABILITY.
This
division
of
this
Act
applies
retroactively
to
March
23,
2020,
for
tax
years
ending
on
or
after
that
date.
DIVISION
XIX
SECTION
179
EXPENSING
Sec.
122.
Section
422.7,
subsections
51
and
52,
Code
2020,
are
amended
by
striking
the
subsections.
Sec.
123.
Section
422.9,
subsection
2,
paragraph
h,
Code
2020,
is
amended
to
read
as
follows:
h.
For
purposes
of
calculating
the
deductions
in
this
subsection
that
are
authorized
under
the
Internal
Revenue
Code,
and
to
the
extent
that
any
of
such
deductions
is
determined
by
an
individual’s
federal
adjusted
gross
income,
the
individual’s
federal
adjusted
gross
income
is
computed
in
accordance
with
section
422.7,
subsections
39,
39A,
39B,
51,
52,
and
53
.
Sec.
124.
Section
422.35,
subsections
14
and
15,
Code
2020,
are
amended
by
striking
the
subsections.
Sec.
125.
PRESERVATION
OF
EXISTING
RIGHTS.
The
sections
of
this
division
striking
section
422.7,
subsections
51
and
52,
and
section
422.35,
subsections
14
and
15,
respectively,
shall
not
limit,
modify,
or
otherwise
adversely
affect
a
taxpayer’s
right
to
deduct
for
a
tax
year
beginning
on
or
after
January
1,
2020,
any
amount
determined
under
section
422.7,
subsection
52,
paragraph
“b”,
subparagraph
(3),
Code
2020,
or
under
section
422.35,
subsection
15,
paragraph
“b”,
subparagraph
(3),
Code
2020,
for
a
tax
year
beginning
prior
to
January
1,
2020.
Sec.
126.
RETROACTIVE
APPLICABILITY.
This
division
of
this
Act
applies
retroactively
to
January
1,
2020,
for
tax
years
beginning
on
or
after
that
date.
DIVISION
XX
IOWA
EDUCATIONAL
SAVINGS
PLAN
TRUST
(529
PLANS)
Sec.
127.
Section
12D.1,
subsection
2,
paragraph
k,
Code
2020,
is
amended
to
read
as
follows:
House
File
2641,
p.
69
k.
“Qualified
education
expenses”
means
the
same
as
“qualified
higher
education
expenses”
as
defined
in
section
529(e)(3)
of
the
Internal
Revenue
Code,
as
amended
by
Pub.
L.
No.
115-97,
and
shall
include
elementary
and
secondary
school
expenses
for
tuition
described
in
section
529(c)(7)
of
the
Internal
Revenue
Code,
subject
to
the
limitations
imposed
by
section
529(e)(3)(A)
of
the
Internal
Revenue
Code.
“Qualified
education
expenses”
includes
expenses
for
the
participation
in
an
apprenticeship
program
registered
and
certified
with
the
United
States
secretary
of
labor
under
section
1
of
the
National
Apprenticeship
Act,
29
U.S.C.
§50,
and
amounts
paid
as
principal
or
interest
on
any
qualified
education
loan
on
behalf
of
a
beneficiary
or
a
sibling
of
the
beneficiary,
subject
to
the
limitations
imposed
by
section
529(c)(9)(B)
and
(C)
of
the
Internal
Revenue
Code.
Sec.
128.
Section
12D.1,
subsection
2,
Code
2020,
is
amended
by
adding
the
following
new
paragraphs:
NEW
PARAGRAPH
.
0l.
“Qualified
education
loan”
means
the
same
as
“qualified
education
loan”
as
defined
in
section
221(d)
of
the
Internal
Revenue
Code.
NEW
PARAGRAPH
.
0m.
“Sibling”
means
a
brother,
sister,
stepbrother,
or
stepsister
of
the
beneficiary.
Sec.
129.
Section
422.7,
subsection
32,
paragraph
c,
subparagraph
(1),
Code
2020,
is
amended
by
adding
the
following
new
subparagraph
divisions:
NEW
SUBPARAGRAPH
DIVISION
.
(d)
The
payment
of
expenses
for
fees,
books,
supplies,
and
equipment
required
for
the
participation
of
a
beneficiary
in
an
apprenticeship
program.
NEW
SUBPARAGRAPH
DIVISION
.
(e)
The
payment
of
qualified
education
loan
repayments.
Sec.
130.
Section
422.7,
subsection
32,
paragraph
c,
subparagraph
(2),
Code
2020,
is
amended
by
adding
the
following
new
subparagraph
divisions:
NEW
SUBPARAGRAPH
DIVISION
.
(0a)
“Apprenticeship
program”
means
a
program
registered
and
certified
with
the
United
States
secretary
of
labor
under
section
1
of
the
National
Apprenticeship
Act,
29
U.S.C.
§50.
NEW
SUBPARAGRAPH
DIVISION
.
(0c)
“Qualified
education
loan”
means
the
same
as
defined
in
section
12D.1,
subsection
2.
House
File
2641,
p.
70
NEW
SUBPARAGRAPH
DIVISION
.
(00c)
“Qualified
education
loan
repayments”
means
amounts
paid
as
principal
or
interest
on
any
qualified
education
loan
of
the
beneficiary
or
a
sibling
of
the
beneficiary.
The
repayment
amounts
shall
not
exceed
ten
thousand
dollars
in
the
aggregate
for
the
beneficiary
or
the
sibling,
respectively.
NEW
SUBPARAGRAPH
DIVISION
.
(d)
“Sibling”
means
the
same
as
defined
in
section
12D.1,
subsection
2.
Sec.
131.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
Sec.
132.
RETROACTIVE
APPLICABILITY.
This
division
of
this
Act
applies
retroactively
to
January
1,
2019,
for
tax
years
beginning
on
or
after
that
date.
DIVISION
XXI
IOWA
EDUCATIONAL
SAVINGS
ACCOUNT
AND
FIRST-TIME
HOMEBUYER
ACCOUNT
——
EXTENSIONS
Sec.
133.
EXTENSION
OF
IOWA
EDUCATIONAL
SAVINGS
ACCOUNT
CONTRIBUTION
DEDUCTION
FOR
TAX
YEAR
2019.
Notwithstanding
any
provision
of
law
to
the
contrary,
in
determining
the
deduction
provided
under
section
422.7,
subsection
32,
paragraph
“a”,
for
tax
years
beginning
during
the
2019
calendar
year,
a
participant
who
makes
a
contribution
to
the
Iowa
educational
savings
plan
trust
pursuant
to
section
12D.3,
subsection
1,
on
or
after
January
1,
2020,
but
on
or
before
July
31,
2020,
may
elect
to
be
deemed
to
have
made
the
contribution
on
the
last
day
of
calendar
year
2019.
Sec.
134.
EXTENSION
OF
IOWA
FIRST-TIME
HOMEBUYER
ACCOUNT
AND
BENEFICIARY
DESIGNATION
FOR
ACCOUNTS
OPENED
IN
2019.
1.
Notwithstanding
section
541B.3,
subsection
1,
paragraph
“a”,
or
any
other
provision
of
law
to
the
contrary,
an
individual
who
opened
a
first-time
homebuyer
account
during
calendar
year
2019
and
who
wishes
to
participate
in
the
Iowa
first-time
homebuyer
savings
account
program
shall
designate
the
account
as
a
first-time
homebuyer
account
on
or
before
July
31,
2020,
on
forms
provided
by
the
department
of
revenue.
2.
Notwithstanding
section
541B.3,
subsection
2,
paragraph
“a”,
or
any
other
provision
of
law
to
the
contrary,
an
individual
who
opened
a
first-time
homebuyer
account
during
calendar
year
2019
and
who
wishes
to
participate
in
the
Iowa
House
File
2641,
p.
71
first-time
homebuyer
savings
account
program
shall
designate
an
individual
as
beneficiary
of
the
first-time
homebuyer
savings
account
on
or
before
July
31,
2020,
on
forms
provided
by
the
department
of
revenue.
Sec.
135.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
DIVISION
XXII
IOWA
EDUCATIONAL
SAVINGS
PLAN
TRUST
(529
PLANS)
——
RECONTRIBUTIONS
Sec.
136.
Section
422.7,
subsection
32,
paragraph
c,
subparagraph
(1),
Code
2020,
is
amended
by
adding
the
following
new
subparagraph
division:
NEW
SUBPARAGRAPH
DIVISION
.
(d)
(i)
A
recontribution
of
a
refund
of
any
qualified
higher
education
expenses
from
an
eligible
educational
institution
to
the
extent
that
such
refund
has
been
recontributed
to
the
Iowa
educational
savings
plan
trust
described
in
chapter
12D
and
meets
all
of
the
following
criteria:
(A)
The
recontribution
is
made
to
the
same
account
from
which
the
original
withdrawal
was
made.
(B)
The
recontribution
occurs
within
sixty
days
of
the
date
of
refund.
(C)
The
recontribution
amount
does
not
exceed
the
amount
refunded
by
the
eligible
educational
institution.
(ii)
A
deduction
under
paragraph
“a”
shall
not
be
taken
for
the
amount
of
the
recontribution.
Sec.
137.
Section
422.7,
subsection
32,
paragraph
c,
subparagraph
(2),
subparagraph
division
(c),
subparagraph
subdivision
(ii),
Code
2020,
is
amended
to
read
as
follows:
(ii)
For
purposes
of
this
subparagraph
division
(c),
“Internal
Revenue
Code”
means
the
Internal
Revenue
Code
of
1954,
prior
to
the
date
of
its
redesignation
as
the
Internal
Revenue
Code
of
1986
by
the
Tax
Reform
Act
of
1986,
or
means
the
Internal
Revenue
Code
of
1986
as
amended
and
in
effect
on
January
1,
2018
2020
.
This
definition
shall
not
be
construed
to
include
any
amendment
to
the
Internal
Revenue
Code
enacted
after
the
date
specified
in
the
preceding
sentence,
including
any
amendment
with
retroactive
applicability
or
effectiveness.
Sec.
138.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
House
File
2641,
p.
72
deemed
of
immediate
importance,
takes
effect
upon
enactment.
Sec.
139.
RETROACTIVE
APPLICABILITY.
This
division
of
this
Act
applies
retroactively
to
January
1,
2019,
for
tax
years
beginning
on
or
after
that
date.
DIVISION
XXIII
QUALIFYING
PERSONAL
PROTECTION
EQUIPMENT
——
DONATION
Sec.
140.
Section
423.6,
Code
2020,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
18.
Qualifying
personal
protective
equipment
and
materials
which
are
assembled
to
become
qualifying
personal
protective
equipment.
For
purposes
of
this
subsection,
“qualifying
personal
protective
equipment”
means
personal
protective
equipment
that
is
assembled
and
donated
by
a
person
during
the
period
beginning
with
a
state
of
disaster
emergency
proclamation
by
the
governor
under
section
29C.6
and
ending
one
hundred
eighty
days
after
the
expiration
of
such
proclamation.
Sec.
141.
REFUNDS.
Refunds
of
taxes,
interest,
or
penalties
that
arise
from
claims
resulting
from
the
enactment
of
this
division
of
this
Act,
for
donations
occurring
prior
to
the
effective
date
of
this
division
of
this
Act,
shall
not
be
allowed
unless
claims
are
filed
prior
to
October
1,
2020,
notwithstanding
any
other
provision
of
the
law
to
the
contrary.
Sec.
142.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
Sec.
143.
RETROACTIVE
APPLICABILITY.
This
division
of
this
Act
applies
retroactively
to
January
1,
2020,
for
qualifying
personal
protective
equipment
and
materials
assembled
and
donated
on
or
after
that
date.
DIVISION
XXIV
FOOD
OPERATION
TRESPASS
Sec.
144.
Section
716.7A,
subsection
1,
paragraph
d,
as
enacted
by
2020
Iowa
Acts,
Senate
File
2413,
section
17,
is
amended
to
read
as
follows:
d.
(1)
“Food
operation”
means
any
of
the
following:
(1)
(a)
A
location
where
a
food
animal
is
produced,
maintained,
or
otherwise
housed
or
kept,
or
processed
in
any
manner.
(2)
(b)
A
location
other
than
as
described
in
subparagraph
House
File
2641,
p.
73
(1)
division
(a)
where
a
food
animal
is
kept,
including
an
apiary,
livestock
market,
vehicle
or
trailer
attached
to
a
vehicle,
fair,
exhibition,
or
a
business
operated
by
a
person
licensed
to
practice
veterinary
medicine
pursuant
to
chapter
169.
(3)
(c)
A
location
where
a
meat
food
product,
poultry
product,
milk
or
milk
product,
eggs
or
an
egg
product,
aquatic
product,
or
honey
is
prepared
for
human
consumption,
including
a
food
processing
plant,
a
slaughtering
establishment
operating
under
the
provisions
of
21
U.S.C.
§451
et
seq.
or
21
U.S.C.
§601
et
seq.;
or
a
slaughtering
establishment
subject
to
state
inspection
as
provided
in
chapter
189A.
(4)
(2)
A
“Food
operation”
does
not
include
a
food
establishment
or
farmers
market
that
sells
or
offers
for
sale
a
meat
food
product,
poultry
product,
milk
or
milk
product,
eggs
or
an
egg
product,
aquatic
product,
or
honey
.
Sec.
145.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
Sec.
146.
RETROACTIVE
APPLICABILITY.
This
division
of
this
Act
applies
retroactively
to
June
10,
2020.
DIVISION
XXV
SHORT-TERM
RENTAL
PROPERTIES
Sec.
147.
Section
331.301,
Code
2020,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
18.
a.
For
purposes
of
this
subsection,
“short-term
rental
property”
means
any
individually
or
collectively
owned
single-family
house
or
dwelling
unit;
any
unit
or
group
of
units
in
a
condominium,
cooperative,
or
timeshare;
or
an
owner-occupied
residential
home
that
is
offered
for
a
fee
for
thirty
days
or
less.
“Short-term
rental
property”
does
not
include
a
unit
that
is
used
for
any
retail,
restaurant,
banquet
space,
event
center,
or
other
similar
use.
b.
A
county
shall
not
adopt
or
enforce
any
regulation,
restriction,
or
other
ordinance,
including
a
conditional
use
permit
requirement,
relating
to
short-term
rental
properties
within
the
county.
A
short-term
rental
property
shall
be
classified
as
a
residential
land
use
for
zoning
purposes.
c.
Notwithstanding
paragraph
“b”
,
a
county
may
enact
or
enforce
an
ordinance
that
regulates,
prohibits,
or
otherwise
House
File
2641,
p.
74
limits
short-term
rental
properties
for
the
following
primary
purposes
if
enforcement
is
performed
in
the
same
manner
as
enforcement
applicable
to
similar
properties
that
are
not
short-term
rental
properties:
(1)
Protection
of
public
health
and
safety
related
to
fire
and
building
safety,
sanitation,
or
traffic
control.
(2)
Residential
use
and
zoning
purposes
related
to
noise,
property
maintenance,
or
nuisance
issues.
(3)
Limitation
or
prohibition
of
use
of
property
to
house
sex
offenders;
to
manufacture,
exhibit,
distribute,
or
sell
illegal
drugs,
liquor,
pornography,
or
obscenity;
or
to
operate
an
adult-oriented
entertainment
establishment
as
described
in
section
239B.5,
subsection
4,
paragraph
“a”
.
(4)
To
provide
the
county
with
an
emergency
contact
for
a
short-term
rental
property.
d.
A
county
shall
not
require
a
license
or
permit
fee
for
a
short-term
rental
property
in
the
county.
Sec.
148.
Section
414.1,
subsection
1,
Code
2020,
is
amended
by
adding
the
following
new
paragraph:
NEW
PARAGRAPH
.
e.
(1)
For
purposes
of
this
paragraph,
“short-term
rental
property”
means
any
individually
or
collectively
owned
single-family
house
or
dwelling
unit;
any
unit
or
group
of
units
in
a
condominium,
cooperative,
or
timeshare;
or
an
owner-occupied
residential
home
that
is
offered
for
a
fee
for
thirty
days
or
less.
“Short-term
rental
property”
does
not
include
a
unit
that
is
used
for
any
retail,
restaurant,
banquet
space,
event
center,
or
other
similar
use.
(2)
A
city
shall
not
adopt
or
enforce
any
regulation,
restriction,
or
other
ordinance,
including
a
conditional
use
permit
requirement,
relating
to
short-term
rental
properties
within
the
city.
A
short-term
rental
property
shall
be
classified
as
a
residential
land
use
for
zoning
purposes.
(3)
Notwithstanding
subparagraph
(2),
a
city
may
enact
or
enforce
an
ordinance
that
regulates,
prohibits,
or
otherwise
limits
short-term
rental
properties
for
the
following
primary
purposes
if
enforcement
is
performed
in
the
same
manner
as
enforcement
applicable
to
similar
properties
that
are
not
short-term
rental
properties:
(a)
Protection
of
public
health
and
safety
related
to
fire
House
File
2641,
p.
75
and
building
safety,
sanitation,
or
traffic
control.
(b)
Residential
use
and
zoning
purposes
related
to
noise,
property
maintenance,
or
nuisance
issues.
(c)
Limitation
or
prohibition
of
use
of
property
to
house
sex
offenders;
to
manufacture,
exhibit,
distribute,
or
sell
illegal
drugs,
liquor,
pornography,
or
obscenity;
or
to
operate
an
adult-oriented
entertainment
establishment
as
described
in
section
239B.5,
subsection
4,
paragraph
“a”
.
(d)
To
provide
the
city
with
an
emergency
contact
for
a
short-term
rental
property.
(4)
A
city
shall
not
require
a
license
or
permit
fee
for
a
short-term
rental
property
in
the
city.
DIVISION
XXVI
RURAL
IMPROVEMENT
ZONES
Sec.
149.
Section
357H.1,
subsection
1,
Code
2020,
is
amended
to
read
as
follows:
1.
The
board
of
supervisors
of
a
county
with
less
than
twenty
thousand
residents,
not
counting
persons
admitted
or
committed
to
an
institution
enumerated
in
section
218.1
or
904.102
,
based
upon
the
most
recent
certified
federal
census,
and
with
a
private
lake
real
estate
development
adjacent
to
or
abutting
in
part
a
lake
may
designate
an
area
surrounding
the
lake,
if
it
is
an
unincorporated
area
of
the
county,
a
rural
improvement
zone
upon
receipt
of
a
petition
pursuant
to
section
357H.2
,
and
upon
the
board’s
determination
that
the
area
is
in
need
of
improvements.
Sec.
150.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
Sec.
151.
APPLICABILITY.
This
division
of
this
Act
applies
to
rural
improvement
zones
in
existence
on
or
established
on
or
after
the
effective
date
of
this
division
of
this
Act.
DIVISION
XXVII
ENTERPRISE
ZONE
PROGRAM
Sec.
152.
2014
Iowa
Acts,
chapter
1130,
section
27,
is
amended
to
read
as
follows:
SEC.
27.
INVESTMENT
TAX
CREDITS
ISSUED
TO
ELIGIBLE
HOUSING
BUSINESSES
UNDER
THE
ENTERPRISE
ZONE
PROGRAM
——
TRANSFERABILITY.
Notwithstanding
the
requirement
in
section
15E.193B,
subsection
8,
Code
2014
,
that
not
more
than
three
House
File
2641,
p.
76
million
dollars
worth
of
tax
credits
for
housing
developments
located
in
a
brownfield
site
or
a
blighted
area
shall
be
eligible
for
transfer
in
a
calendar
year
unless
the
eligible
housing
business
is
also
eligible
for
low-income
housing
tax
credits
authorized
under
section
42
of
the
Internal
Revenue
Code,
and
notwithstanding
the
requirement
in
section
15E.193B,
subsection
8,
Code
2014
,
that
the
economic
development
authority
shall
not
approve
more
than
one
million
five
hundred
thousand
dollars
in
tax
credit
certificates
for
transfer
to
any
one
eligible
housing
business
located
on
a
brownfield
site
or
in
a
blighted
area
in
a
calendar
year,
all
investment
tax
credits
determined
under
section
15E.193B,
subsection
6
,
paragraph
“a”,
Code
2014,
for
housing
developments
located
on
a
brownfield
site
or
in
a
blighted
area
may
be
approved
by
the
economic
development
authority
for
transfer
in
calendar
year
2014,
or
any
subsequent
calendar
year,
provided
the
eligible
housing
business
was
awarded
the
investment
tax
credit
before
the
effective
date
of
this
section
of
this
division
of
this
Act
and
notifies
the
economic
development
authority,
in
writing,
before
July
1,
2014,
of
its
intent
to
transfer
such
tax
credits,
or
provided
the
eligible
housing
business
was
awarded
the
investment
tax
credit
before
July
1,
2015,
for
a
housing
development
located
in
a
blighted
area
and
in
a
county
with
a
total
population
of
less
than
one
hundred
five
thousand
as
determined
by
the
most
recent
federal
decennial
census,
and
submits
a
written
request
to
the
economic
development
authority
before
September
1,
2020,
for
approval
to
transfer
such
tax
credits
and
provided
the
eligible
housing
business
and
the
related
housing
development
meet
all
other
applicable
requirements
under
section
15E.193B,
Code
2014
.
Notwithstanding
any
other
provision
of
law
to
the
contrary,
a
tax
credit
transferred
pursuant
to
this
section
shall
not
be
claimed
by
a
transferee
prior
to
January
1,
2016.
Sec.
153.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
Sec.
154.
RETROACTIVE
APPLICABILITY.
This
division
of
this
Act
applies
retroactively
to
May
30,
2014.
DIVISION
XXVIII
FLYING
OUR
COLORS
SPECIAL
REGISTRATION
PLATES
House
File
2641,
p.
77
Sec.
155.
Section
321.34,
Code
2020,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
11D.
Flying
our
colors
plates.
a.
Upon
application
and
payment
of
the
proper
fees,
the
director
may
issue
flying
our
colors
plates
to
the
owner
of
a
motor
vehicle
subject
to
registration
under
section
321.109,
subsection
1,
autocycle,
motor
truck,
motor
home,
multipurpose
vehicle,
motorcycle,
trailer,
or
travel
trailer.
b.
Flying
our
colors
plates
shall
be
designed
by
the
department.
Flying
our
colors
plates
shall
be
navy
along
the
top
and
red
along
the
bottom,
and
contain
a
white
space
in
the
middle
of
the
plate
which
shall
include
the
plate’s
letters
and
numbers
in
black
and
a
gray
image
of
a
bald
eagle
behind
the
plate’s
letters
and
numbers.
c.
(1)
The
special
flying
our
colors
fee
for
letter-number
designated
flying
our
colors
plates
is
thirty-five
dollars.
An
applicant
may
obtain
personalized
flying
our
colors
plates
upon
payment
of
the
fee
for
personalized
plates
as
provided
in
subsection
5,
which
is
in
addition
to
the
special
fee.
The
fees
collected
by
the
director
under
this
subsection
shall
be
paid
monthly
to
the
treasurer
of
state
and
deposited
in
the
road
use
tax
fund.
(2)
The
treasurer
of
state
shall
credit
monthly
from
the
statutory
allocations
fund
created
under
section
321.145,
subsection
2,
to
the
flood
mitigation
fund
created
under
section
418.10,
the
amount
of
the
special
fees
collected
in
the
previous
month
for
flying
our
colors
plates.
This
subparagraph
is
repealed
July
1,
2023.
d.
Upon
receipt
of
the
special
registration
plates,
the
applicant
shall
surrender
the
current
registration
plates
to
the
county
treasurer.
The
county
treasurer
shall
validate
the
special
registration
plates
in
the
same
manner
as
regular
registration
plates
are
validated
under
this
section.
The
annual
special
flying
our
colors
fee
for
letter-number
designated
flying
our
colors
plates
is
ten
dollars
which
shall
be
paid
in
addition
to
the
regular
annual
registration
fee.
The
annual
fee
for
personalized
flying
our
colors
plates
is
five
dollars
which
shall
be
paid
in
addition
to
the
annual
special
flying
our
colors
fee
and
the
regular
annual
House
File
2641,
p.
78
registration
fee.
The
annual
special
flying
our
colors
fee
shall
be
credited
as
provided
under
paragraph
“c”
.
Sec.
156.
Section
321.166,
subsection
9,
Code
2020,
is
amended
to
read
as
follows:
9.
Special
registration
plates
issued
pursuant
to
section
321.34
,
other
than
gold
star,
medal
of
honor,
collegiate,
fire
fighter,
natural
resources,
and
blackout
,
and
flying
our
colors
registration
plates,
shall
be
consistent
with
the
design
and
color
of
regular
registration
plates
but
shall
provide
a
space
on
a
portion
of
the
plate
for
the
purpose
of
allowing
the
placement
of
a
distinguishing
processed
emblem
or
an
organization
decal.
Special
registration
plates
shall
also
comply
with
the
requirements
for
regular
registration
plates
as
provided
in
this
section
to
the
extent
the
requirements
are
consistent
with
the
section
authorizing
a
particular
special
vehicle
registration
plate.
______________________________
PAT
GRASSLEY
Speaker
of
the
House
______________________________
CHARLES
SCHNEIDER
President
of
the
Senate
I
hereby
certify
that
this
bill
originated
in
the
House
and
is
known
as
House
File
2641,
Eighty-eighth
General
Assembly.
______________________________
MEGHAN
NELSON
Chief
Clerk
of
the
House
Approved
_______________,
2020
______________________________
KIM
REYNOLDS
Governor