Bill Text: IA SF2407 | 2017-2018 | 87th General Assembly | Enrolled
Bill Title: A bill for an act modifying the rebate of sales and use tax to the owner or operator of a raceway facility and including effective date and retroactive applicability provisions. (Formerly SF 2074.) Effective 5-16-18.
Spectrum: Committee Bill
Status: (Passed) 2018-05-16 - Signed by Governor. S.J. 1087. [SF2407 Detail]
Download: Iowa-2017-SF2407-Enrolled.html
Senate File 2407 - Enrolled
SENATE FILE
BY COMMITTEE ON WAYS AND
MEANS
(SUCCESSOR TO SF 2074)
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A BILL FOR
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Senate File 2407
AN ACT
MODIFYING THE REBATE OF SALES AND USE TAX TO THE OWNER OR
OPERATOR OF A RACEWAY FACILITY AND INCLUDING EFFECTIVE DATE
AND RETROACTIVE APPLICABILITY PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 423.2, subsection 11, paragraph b,
subparagraph (7), Code 2018, is amended to read as follows:
(7) Beginning the first day of the quarter following July
1, 2014, transfer to the raceway facility tax rebate fund
created in section 423.4, subsection 11, paragraph "e", that
portion of the sales tax receipts collected and remitted upon
sales of tangible personal property or services furnished by
retailers at a raceway facility meeting the qualifications
of section 423.4, subsection 11, that remains after the
transfers required in subparagraphs (1) through (6) of this
paragraph "b". This subparagraph is repealed June 30, 2025,
or thirty days following the date on which an amount of total
rebates specified in section 423.4, subsection 11, paragraph
"c", subparagraph (4) (3), subparagraph division (a) or (b),
whichever is applicable, has been provided or thirty days
following the date on which rebates cease as provided in
section 423.4, subsection 11, paragraph "c", subparagraph (5)
(4), whichever is earliest.
Sec. 2. Section 423.4, subsection 11, paragraphs b, c, d, e,
and g, Code 2018, are amended to read as follows:
b. The owner or operator of a raceway facility may apply to
the department for a rebate of the following:
(1) Sales sales tax imposed and collected by retailers upon
sales of tangible personal property or services furnished to
purchasers at the raceway facility. Notwithstanding the state
sales tax imposed in section 423.2, a sales tax rebate issued
pursuant to this subparagraph shall not exceed the amounts
transferred to the raceway facility tax rebate fund pursuant to
section 423.2, subsection 11, paragraph "b", subparagraph (7).
(2) (a) Sales or use tax upon the sales price of all
tangible personal property, or from services furnished to a
contractor, used in the fulfillment of a written contract with
the owner or operator if the property becomes an integral part
of the project under contract and at the completion of the
project becomes part of the raceway facility.
(b) The rebate available under this subparagraph shall be
limited to one project per raceway facility. If such a project
is undertaken, the owner or operator of the raceway facility
shall notify the department upon completion of the project.
(c) Notwithstanding the state sales tax imposed in section
423.2, a sales tax rebate issued pursuant to this subparagraph
shall not exceed the amounts remaining after the transfers
required under section 423.2, subsection 11, paragraph "b",
subparagraphs (1) through (6), have been made from the total
amount of sales tax for which the rebate is requested.
(d) Notwithstanding the state use tax imposed in section
423.5, a use tax rebate issued pursuant to this subparagraph
shall not exceed the amounts remaining after the transfers
required under section 423.43, subsection 1, have been made
from the total amount of use tax for which the rebate is
requested.
c. The rebate may be obtained only in the following amounts
and manner and only under the following conditions:
(1) For rebates pursuant to paragraph "b", subparagraph (1),
on On forms furnished by the department within the time period
provided by the department by rule, which time period shall not
be longer than quarterly in this subparagraph. As prescribed
in subparagraph (3), subparagraph division (a), the amount
of a rebate shall be limited by and calculated according to
the amount of project costs incurred and paid by the owner or
operator on or after the effective date of this Act. A rebate
claim calculated according to an amount of project costs shall
be considered timely only if the form upon which the rebate is
requested is filed with the department within ninety days of
the date the project cost is paid by the owner or operator.
(2) For rebates pursuant to paragraph "b", subparagraph (2),
on forms furnished by the department within the time period
provided by the department by rule, but not more than one year
after the final settlement has been made.
(3) (2) The owner or operator shall provide information as
deemed necessary by the department, including but not limited
to information to substantiate the project costs incurred and
paid by the owner or operator.
(4) (3) The transactions described in paragraph "b" for
which sales or use tax was collected and the rebate is sought
occurred on or after January 1, 2015, but before January 1,
2025. However, the total amount of rebates provided pursuant
to this subsection shall not exceed the lesser of the following
amounts:
(a) Twenty=five percent of the project costs, as determined
by the department, if such a project is undertaken by the owner
or operator The amount of project costs incurred and paid by
the owner or operator on or after the effective date of this
Act. For purposes of this subparagraph division subsection,
"project costs" means costs incurred and paid by the owner or
operator in connection with the planning, design, construction,
and installation of new property or of modifications to
existing property that becomes an integral part of the project
under contract which project if such property upon completion
of one or more projects becomes or remains part of the
raceway facility, and other costs incurred by the owner or
operator in connection with the project that are customarily
associated with the and constitutes the renovation, remodeling,
reconstruction, expansion, equipping, or improvement of real
property that comprises the raceway facility. Project costs
shall be determined after the department receives notification
of completion of the project pursuant to paragraph "b",
subparagraph (2), subparagraph division (b) "Project costs" does
not include any amount of cost that is not substantiated to the
department pursuant to subparagraphs (1) and (2) within ninety
days of the date it is paid by the owner or operator. However,
if rebates cease because of a change of control of the raceway
facility as provided in paragraph "c", subparagraph (5),
project costs shall be determined as of the date the change of
control occurs.
(b) Two One million eight hundred thousand dollars.
(5) (4) Notwithstanding subparagraph (4) (3), the rebate
of sales or use tax shall cease for transactions occurring
on or after the date of the change of control of the raceway
facility.
(6) (5) The raceway facility has not received or shall not
receive any grants under the community attraction and tourism
program pursuant to chapter 15F, subchapter II, or the vision
Iowa program pursuant to chapter 15F, subchapter III.
d. To assist the department in determining the amount of the
rebate, the following shall occur:
(1) For rebates pursuant to paragraph "b", subparagraph
(1), the owner or operator shall identify to the department
retailers located at the raceway facility who will be
collecting sales tax. The department shall verify such
identity and ensure that all proper permits have been issued.
For purposes of this subsection, advance ticket and admissions
sales shall be considered occurring at the raceway facility
regardless of where the transactions actually occur.
(2) For rebates pursuant to paragraph "b", subparagraph (2),
the contractor shall state under oath, on forms provided by
the department, the amount of such sales of tangible personal
property, or services furnished and used in the performance
of a contract, and upon which sales or use tax has been paid,
and shall file such forms with the owner or operator which has
made any written contract for performance by the contractor.
The forms shall be filed by the contractor with the owner or
operator before final settlement is made. 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.
e. There is established within the state treasury under
the control of the department a raceway facility tax rebate
fund consisting of the amount of state sales tax revenues
transferred pursuant to section 423.2, subsection 11, paragraph
"b", subparagraph (7). An account is created within the
fund for each raceway facility meeting the qualifications
of this subsection. Moneys in the fund shall only be used
to provide rebates of state sales tax pursuant to paragraph
"b", subparagraph (1). The total amount of rebates paid from
the fund shall not exceed the amount specified in paragraph
"c", subparagraph (4) (3), subparagraph division (a) or (b),
whichever is applicable less. Any moneys in the fund which
represent state sales tax revenue for which the time period
in paragraph "c" for receiving a rebate has expired, or which
otherwise represent state sales tax revenue that has become
ineligible for rebate pursuant to this subsection shall
immediately revert to the general fund of the state.
g. This subsection is repealed June 30, 2025, or thirty
days following the date on which an amount of total rebates
specified in paragraph "c", subparagraph (4), subparagraph
division (a) or (b), whichever is applicable, has one million
eight hundred thousand dollars in total rebates have been
provided and no overpayment of rebates exists, or thirty days
following the date on which rebates cease as provided in
paragraph "c", subparagraph (5) (4), and no overpayment of
rebates exists, whichever is earliest.
Sec. 3. EFFECTIVE DATE. This Act, being deemed of immediate
importance, takes effect upon enactment.
Sec. 4. RETROACTIVE APPLICABILITY. This Act applies
retroactively to January 1, 2015, for sales occurring on or
after that date.
CHARLES SCHNEIDE
LINDA UPMEYER
W. CHARLES SMITH
KIM REYNOLDS
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