Senate File 507 - Introduced
SENATE FILE
BY COMMITTEE ON WAYS AND
MEANS
(SUCCESSOR TO SSB
1224)
A BILL FOR
1 An Act relating to state revenue and finance laws by exempting
2 certain all=terrain vehicles and off=road utility vehicles
3 from the sales and use tax, modifying the flood mitigation
4 program, and modifying the disabled veteran homestead
5 tax credit, and including effective date and retroactive
6 applicability provisions.
7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 DIVISION I
1 2 SALES AND USE TAXES
1 3 Section 1. Section 423.3, subsection 8, paragraph d, Code
1 4 2015, is amended to read as follows:
1 5 d. (1) For purposes of this subsection, the following
1 6 items are exempt under paragraph "a" when used primarily in
1 7 agricultural production:
1 8 (a) A diesel fuel trailer, regardless of the vehicle to
1 9 which it is to be attached.
1 10 (b) A seed tender, regardless of the vehicle to which it is
1 11 to be attached.
1 12 (c) An all=terrain vehicle.
1 13 (d) An off=road utility vehicle.
1 14 (2) For purposes of this paragraph:
1 15 (a) "All=terrain vehicle" means the same as defined in
1 16 section 321I.1.
1 17 (a) (b) "Fuel trailer" means a trailer that holds dyed
1 18 diesel fuel or diesel exhaust fluid and that is used to
1 19 transport such fuel or fluid to a self=propelled implement of
1 20 husbandry.
1 21 (c) "Off=road utility vehicle" means the same as defined in
1 22 section 321I.1.
1 23 (b) (d) "Seed tender" means a trailer that holds seed and
1 24 that is used to transport seed to an implement of husbandry and
1 25 load seed into an implement of husbandry.
1 26 DIVISION II
1 27 FLOOD MITIGATION PROGRAM
1 28 Sec. 2. Section 418.5, subsections 1 and 6, Code 2015, are
1 29 amended to read as follows:
1 30 1. The flood mitigation board is established consisting
1 31 of nine voting members and four five ex officio, nonvoting
1 32 members, and is located for administrative purposes within
1 33 the department. The director of the department shall provide
1 34 office space, staff assistance, and necessary supplies and
1 35 equipment for the board. The director shall budget funds to
2 1 pay the necessary expenses of the board. In performing its
2 2 functions, the board is performing a public function on behalf
2 3 of the state and is a public instrumentality of the state.
2 4 6. The board's ex officio membership shall include be
2 5 comprised of the following:
2 6 a. four Four members of the general assembly with one
2 7 each appointed by the majority leader of the senate, the
2 8 minority leader of the senate, the speaker of the house of
2 9 representatives, and the minority leader of the house of
2 10 representatives. A legislative member serves for a term as
2 11 provided in section 69.16B in an ex officio, nonvoting capacity
2 12 and is eligible for per diem and expenses as provided in
2 13 section 2.10.
2 14 b. The director of revenue or the director's designee.
2 15 Sec. 3. Section 418.15, subsection 1, Code 2015, is amended
2 16 to read as follows:
2 17 1. A governmental entity shall not receive remittances of
2 18 sales tax revenue under this chapter after twenty years from
2 19 the date the governmental entity's project was approved by the
2 20 board unless the remittance amount is calculated under section
2 21 418.11 based on sales subject to the tax under section 423.2
2 22 occurring before the expiration of the twenty=year period.
2 23 DIVISION III
2 24 DISABLED VETERAN HOMESTEAD
2 25 PROPERTY TAX CREDIT APPLICATION
2 26 Sec. 4. 2015 Iowa Acts, House File 166, is amended by adding
2 27 the following new section:
2 28 NEW SECTION. SEC. 6. EXCEPTION TO APPLICATION FILING
2 29 DEADLINE. Notwithstanding the filing deadline under section
2 30 425.2, claims for the homestead credit authorized under section
2 31 425.15, as amended in this Act, filed after July 1, 2014, but
2 32 before July 1, 2015, shall be considered to be a claim properly
2 33 filed for taxes due and payable in the fiscal year beginning
2 34 July 1, 2015.
2 35 Sec. 5. EFFECTIVE UPON ENACTMENT. This division of this
3 1 Act, being deemed of immediate importance, takes effect upon
3 2 enactment.
3 3 Sec. 6. RETROACTIVE APPLICABILITY. This division of this
3 4 Act applies retroactively to March 5, 2015.
3 5 EXPLANATION
3 6 The inclusion of this explanation does not constitute agreement with
3 7 the explanation's substance by the members of the general assembly.
3 8 This bill relates to the policy administration of the tax and
3 9 related laws by the department of revenue.
3 10 DIVISION I ==== SALES AND USE TAXES. Division I exempts
3 11 the sales price of all=terrain vehicles and off=road utility
3 12 vehicles used primarily in agricultural production from the
3 13 sales and use tax. Under current law, such vehicles are not
3 14 exempt from sales and use tax unless they are directly and
3 15 primarily used in production of agricultural products.
3 16 "All=terrain vehicle" means a motorized vehicle with not
3 17 less than three and not more than six nonhighway tires that
3 18 is limited in engine displacement to less than 1,000 cubic
3 19 centimeters and in total dry weight to less than 1,200 pounds
3 20 and that has a seat or saddle designed to be straddled by the
3 21 operator and handlebars for steering control.
3 22 "Off=road utility vehicle" means a motorized vehicle with
3 23 not less than four and not more than eight nonhighway tires or
3 24 rubberized tracks that has a seat that is of bucket or bench
3 25 design, not intended to be straddled by the operator, and a
3 26 steering wheel or control levers for control.
3 27 By operation of Code section 423.6, an item exempt from the
3 28 imposition of the sales tax is also exempt from the use tax
3 29 imposed in Code section 423.5.
3 30 DIVISION II ==== FLOOD MITIGATION PROGRAM. Division II adds
3 31 the director of revenue, or a designee of the director, as an
3 32 ex officio, nonvoting member of the flood mitigation board
3 33 created in Code chapter 418. The flood mitigation board is
3 34 currently composed of nine voting members and four ex officio,
3 35 nonvoting members who are members of the general assembly, and
4 1 is responsible for overseeing the flood mitigation program
4 2 administered by the department of homeland security and
4 3 emergency management.
4 4 Division II also modifies provisions relating to the
4 5 remittance of sales tax revenues to governmental entities under
4 6 the flood mitigation program. Under current law, no sales
4 7 tax revenues shall be remitted to government entities after
4 8 20 years from the project's approval date. The bill provides
4 9 that sales tax revenue may be remitted to governmental entities
4 10 after that 20=year period provided the remitted sales tax
4 11 amounts are based on sales occurring before the expiration of
4 12 the project's 20=year period.
4 13 DIVISION III ==== DISABLED VETERAN HOMESTEAD PROPERTY TAX
4 14 CREDIT APPLICATION. Code section 425.2 establishes the filing
4 15 deadline for the homestead credit available to certain disabled
4 16 veterans under Code section 425.15. The bill provides that,
4 17 notwithstanding the filing deadline under section 425.2, a
4 18 claim for the homestead credit authorized under Code section
4 19 425.15, as amended by 2015 Acts, House File 166, filed after
4 20 July 1, 2014, but before July 1, 2015, shall be considered to
4 21 be a claim properly filed for taxes due and payable in the
4 22 fiscal year beginning July 1, 2015.
4 23 Division III of the bill takes effect upon enactment and
4 24 applies retroactively to March 5, 2015.
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