SF 366 — A bill for an act relating to state taxation and related laws of the state including the collection of tax, tax credits, the assessment and classification of property, taxes on electricity providers, fees for registration of vehicles, sales and use tax, and the authority of the director of revenue, and providing penalties, and including effective date and retroactive applicability provisions. (Formerly SSB 1122.) Effective date: Enactment, 07/01/2021. Applicability date: Enactment, 01/01/2019, 07/01/2020, 01/01/2020.

(c) In order for the trade-in value to be excluded from the purchase price, the name or namoonames The person listed on the title and registration of the newly acquired vehicle being purchaaodpurchased must be the same name or names person listed on the title and registration of the traded vehicle being traded in order to exclude the trade-in value from the purchase price.price .

TbeThe Additionally, the following trades qualify under this subparagraph division (c):

(ii) A trade involving a grandparent, parent, or child between lineal family members,members , including adopted and step relationships, if the name of one of the family members from the title oof f the traded vehicle is aalso lon sthe o othe title oof f the newly acquired vehicle.

(iii) A trade involving a businossbusiness an entity, if one of the owners listed on the title of the traded vehicle is a business, afid-and an entity.

If multiple names are on the names on the title asa-are must be separated by "'or".“or”.

(iv) A trade in which the vehicle being purchased is titled in the name of an individual other than the owner of the traded vehicle due to the cosigning requirements of a financial iinstitution. n s t i t u t i o n .

(3) Exempted from the purchaaopurchase price The fair market value of a replacement motor vehicle owned by a motor vehicle dealer licensed under chapter 322 which is being registered by that dealer and is not otherwise exempt from the fee for new registration^registration, is the fair market value of a replaced motor vehicle if all of the following conditions are met:

(b) The motor vehicle being registered is taken from the motor vehicle dealer'sdealer’s inventory.

(d) The replaced motor vehicle is returned to the motor vehicle dealer'sdealer’s inventory for sale.

(e) The application for registration and title of the motor vehicle being registered is filed with the county treasurer within two weeks of the date the replaced motor vehicle is returned to the motor vehicle dealer'sdealer’s inventory.

(1) Entities listed in section 423.3, subsections 17, 18, 919, , 20, 221, 1 , 22, 26, 227, 728, ,31, 2 8 , 3 1 , and 779, 9 , to the extent that those entities are exempt from the tax imposed on the sale of tangible personal property, consisting of goods, wares, or merchandise, sold at retail in the state to consumers or users.

Section 321.105A, subsection 2, paragraph c, subparagraph (3), subparagraph divisions (a) and (c).(c), Code 2021, are amended to read as follows:

Code 2021, are amended to read as follows:

8 from a bueineesbusiness or—individualor individual conducting a buainoaabusiness within thiethis state as a sole proprietorship, partnership, or limited liability company to a corporation formed by the sole proprietorship, partnership, or limited liability company for the purpose of continuing the buainessbusiness when all of the stock of the corporation so formed iais owned by the solosole proprietor and thothe solosole proprietor'sproprietor’s gpouao,spouse, by all the partners in thothe case of a partnership, or by all the members in thothe case of a limited liability company.—Thiscompany. exemption is equally available where the vehicles subject to registration are transferred from a corporation to a sole proprietorship, partnership, or limited liability company formed by that corporation for the purpose of continuing the business when all of the incidents of ownership are owned by the same person or persons who wore stockholders of the corporation, an entity doing business within this state to another entity doing business within this state if all of the following apply;

This exemption is equally available where the vehicles subject to registration are transferred from a corporation to a sole proprietorship, partnership, or limited liability company formed by that corporation for the purpose of continuing the business when all of the incidents of ownership are owned by the same person or persons who were stockholders of the corporation.

an entity doing business within this state to another entity doing business within this state if all of the following apply:

Section 321.105A, subsection 2, paragraph c, subparagraphs (7), (8), (15), (18), and (19), Code 2021, are aamended mto eread nas dtfollows: or e aa sf o l l o w s :

(7) Vehicles subject to registration in this state for which the applicant for registration has paid to another state a state sales, use, or occupational tax, or paid the equivalent sales or excise tax of another country to that country.country .

However, if the tax paid to another state or country is less than the fee for new registration calculated for the vehicle, tthe hdifference dshall ibe fthe famount eto rbe scollected has athe bfee et h a m o u t ob ec o l l e a s t h e f e e for new registration.

(15) Vehicles purchased by a licensed wholesaler of new motor vehicles licensed under section 322.27A for resale by the ssame awholesaler. mw h o l e s a l e r .

(18) A vehicle delivered to a resident Native American IIndian non dthe i a nreservation. o n -r e s e r v a t i o n .

Section 321.105A, subsection 2, paragraph c, subparagraph (25), unnumbered paragraph 1, Code 2021, is aamended mto eread nas tfollows: o r e aa sf o l l o w s :

Vehicles subject to registration under this chapter with a gross vehicle weight rating of less than sixteen thousand pounds when purchased for lease and titled by the lessor licensed pursuant to chapter 321F and actually leased for a period of twelve six months or more if the lease of the vehicle is subject to the fee for new registration under subsection 3 or exempt from the fee for new registration pursuant to subsection 3, paragraph Sec.“f”.

Sec.

Section 321.105A, subsection 3, paragraphs a and e.e, Code 2021, are amended to read as follows:

Code 2021, are amended to read as follows:

A registration receipt for a vehicle subject to registration or iissuance sof s u ao fcaec e r t i f o ft i t ls h a ncertificate oof btitle eishall snot sbe uissued uuntil n t i l the fee for new registration is paid in the initial instance.

Section 321.105A, subsection 7, Code 2021, is aamended mto eread nas dtfollows: or e aa sf o l l o w s :

Penalty for false statement or cvaaionevasion of fee Penalties.

A person who willfully makes a false statement in regard to the purchase price of such a vehicle with the intent to evade payment of the fee for new registration or willfully attempts in any manner to evade payment of the fee required by this section shall be assessed a penalty of seventy-five percent of the amount of the fee unpaid and required to be paid on the actual purchase price lless etrade-in stallowance. r a d e a l l o w a n c e .

bb. .

Evasion ffee. e e .A n Iowa resident f o u t o be in c o n t r o l of a vehicle which is owned by a shell business and for which the fee for new registration has not been paid, as provided in section 321.55, subsection 2, is guilty of a fraudulent practice.

An Iowa resident found to be in control of a vehicle which is owned by a shell business and for which the fee for new registration has not been paid, as provided in section 321.55, subsection 2, is guilty of a fraudulent practice.

DDIVISION I V IPENALTIES SVI—— OIMPUTED NIOWA PLIABILITY E N A L T—I I M P U I O W L I A B I L I T Y Sec.

Section 421.27, subsection 9, paragraph a.a, Code 2021, is amended to read as follows:

Code 2021, is amended to read as follows:

"^Imputed“Imputed Iowa liability"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 55, , the corporation'scorporation’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, less any Iowa tax credits available to the corporation.corporation .

(2) In the case of financial institutions as defined in section 422.61, the financial institution'sinstitution’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, less any Iowa tax credits available tto o the ffinancial iinstitution n. a n c i a l institution.

(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'sentity’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, less any Iowa tax credits available to the entity.

DDIVISION IVI VPARTNERSHIP IAND SVPASS-THROUGH IOENTITY NAUDITS PAND AREPORTING R T N E RA N P A S S - T H E N T IA U D IA N DR E P O R T I N G Sec.

Section 422.7, subsection 559, 9 , Code 2021, is amended tto orread eas aafollows: sf o l l o w s :

Section 422.25A, subsection 4, Code 2021, is aamended mto eread nas dtfollows: or e aa sf o l l o w s :

Unless an audited partnership makes the election in subsection 5, the audited a partnership shall do all of the following for all final federal partnership adjustments no later than ninety days after the final determination date of-of the audited partnership:

(2) Notify each direct partner of such partner'spartner’s distributive share of the adjustments in the manner and form prescribed by the department by rule.

(1) File a completed federal adjustments report reporting the direct partner'spartner’s distributive share of the adjustments Senate PileFile 366, p.

13 required to be reported to such partners under paragraph Ta".“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'spartner’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 bbe effiled. i l e d .

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;following:

(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 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'spartner’s distributive share of the adjustments in the manner and form prescribed by the department by rule.

(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 tthat hwould ahave t woulhave been due had the ffinal ifederal n a l f e d e r a l partnership adjustments been reported properly as required.

Section 422.25A, subsection 5, paragraph a.a, Code 2021, is amended to read as follows:

Code 2021, is amended to read as follows:

An audited partnership, or a tiered partner of an audited partnership that receives a notification of a final federal partnership adjustment under subsection 4 of a final federal partnership adjustment arising from a partnership level audit,audit , may make an election to pay as provided under this subsection.

Section 422.25A, subsection 5, paragraph b, unnumbered paragraph 1, Code 2021, is amended to read as ffollows: o l l o w s :

The audited partnership or tiered partner making an election to pay shall file 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 notify each of the direct partners of such partner'spartner’s distributive share of the adjustments, and paying pay on behalf of its partners an amount calculated in paragraph “c”, including any applicable penalty and interest.

(6) ((a) a ) 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 Senate File 366r366, p*p. 15 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.

15 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.

Section 422.25A, subsection 7, paragraph d.d, Code 2021, is amended to read as follows:

Coded. 2021, is amended to read as follows:

cf.

Section 422.25A, subsection 8, paragraph a.a, Code 2021, is amended to read as follows:

Code 2021, is amended to read as follows:

Section 422.25C, subsection 4, Code 2021, is aamended mto eread nas dtfollows: or e aa sf o l l o w s :

Section 422.35, subsection 26, Code 2021, is aamended mto eread nas dtfollows: or e aa sf o l l o w s :

DDIVISION IVII VVEHICLE IREGISTRATION SRENEWALS VAND ICOLLECTIONS IBY VCOUNTY ETREASURERS H—— ICENTRALIZED RCOLLECTION EUNIT G—— IDEPARTMENT SOF TREVENUE R R E N E WA N DC O L L E C B YC O U N T Y T R E A S U R EC E N T R A LC O L L E CU N I TND E P A R T O F N T R E V E N U E Sec.

Section 321.40, subsection 6, paragraph b.b, Code 2021, is amended to read as follows:

Code 2021, is amended to read as follows:

The A county treasurer of the county of the person'sperson’s residence and in which the person'sperson’s vehicle is registered, in cooperation with the department of revenue, may collect from a person applying for renewal of a vehicle registration delinquent taxes^taxes, including penalties and interest owed to the state from a person applying for renewal of a vehicle registration,registration , and nontax liabilities being collected by the central collection unit of the department of revenue pursuant to section 421.17, subsection 27.

A county treasurer shall forward all funds collected for the department of revenue to the department of rrevenue. e v e n u e .

Section 421.17, subsection 27, paragraph k.k, Code 2021, is amended to read as follows:

Code 2021, is amended to read as follows:

A Pursuant to section 321.40, subsection 66, , and rules adopted pursuant to this paragraph, a county treasurer may collect delinquent taxes, including penalties and interest, administered by the department in conjunction with renewal of a vehicle registration as provided in section 321.40, subsection 6^6 , paragraph ,“b”, and rules adopted pursuant to this paragraph and nontax liabilities being collected by the central collection unit of the department of revenue.revenue .

County treasurers shall be given access to information required for the collection of delinquent taxes, including penalties and interest^interest, as necessary to accomplish the purposes of section 321.40, subsection 6^6, paragraph The“b”. confidentiality provisions of sections 422.20 and 422.72 do not apply to information provided by the department to a county treasurer pursuant to this paragraph.

The confidentiality provisions of sections 422.20 and 422.72 do not apply to information provided by the department to a county treasurer pursuant to this paragraph.

DDIVISION IVIII VGARNISHMENT I SV I I I G A R N I S H M E N T Sec.

Section 626.31, Code 2021, is amended to read as ffollows: o l l o w s :

626.31 Return of garnishment ——— action docketed ——— distress aaction. c t i o n .

DDIVISION IIX V I SI XO N SNOWMOBILES, ALL-TERRAIN VEHICLES, AND VESSELS ——— PURCHASES P—— APAYMENT YOF MSALES EOOR FSUSE ATAX L O R U S T A X Sec.

Section 321G.4, subsection 2, paragraph b.b, Code 2021, is amended to read as follows:

Code 2021, is amended to read as follows:

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 in a manner prescribed by the department.department .

Section 3211.4,321I.4, subsection 2, paragraph b.b, Code 2021, is amended to read as follows:

Codeb. 2021, is amended to read as follows:

bIf .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.

I ft h o w n eo ft h a l l - t e rv e h i i su n a b t o present satisfactory evidence that the sales or use tax has been paid, the county recorder shall collect the tax.

19 collected during the preceding month, together with an itemized statement on formaforms furnished by the department of revenue showing the name of each taxpayer, the make and purchase price of each all-terrain vehicle,—thevehicle, the amount of tax paid, and such other information aaas the department of revenue requires in a manner prescribed by the department.department .

Section 462A.55, Code 2021, is amended to read as ffollows: o l l o w s :

On or before the tenth day of each month, the county recorder shall remit to the department of revenue the amount of the taxes so 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 vessel and motor, the amount of tax paidypaid, and such other information as the department of revenue shall require in a manner prescribed by the department.

DDIVISION I V I S X OTANGIBLE NPERSONAL TPROPERTY A—— NRENTALS G—— ISALES PAND EUSE RTAX S OP R O P E R TR E N T A LS A L EA N D S T A X Sec.

Section 9C.1, subsection 11, , Code 2021, is amended tto orread eas aafollows: s f o l l o w s :

As used in this chapter, the term '^transient“transient merchant"merchant” shall mean and include every merchant, whether an individual person, a firm, corporation, partnership, or association, and whether owner, agent, bailee, consignee, or employee, who shall bring or cause to be brought within the state of Iowa any goods, wares, or merchandise tangible personal property of any kind, nature, or description, with the intention of temporarily or intermittently selling or offering to sell at retail such goods, wares, or merchandise tangible personal property within the state of Iowa.

The term "^transient“transient merchant"merchant” shall also mean and include every merchant, whether an individual person, a firm, corporation, partnership, or an association, who shall Senate File 366, p.

20 by itself, or by agent, consignee, or employee^^employee, temporarily or intermittently engage in or conduct at one or more locations a business within the state of Iowa for the sale at retail of any goods, wares, or merchandise tangible personal property of any nature or description.

Section 9C.2, Code 2021, is amended to read as ffollows: o l l o w s :

Section 90.3,9C.3, unnumbered paragraph 1, Code 2021, iis saamended mto eread nas dtfollows: or e aa sf o l l o w s :

Any transient merchant desiring a transient merchant'smerchant’s license shall at least ten days prior to the first day any sale is made, file with the secretary of state of the state of Iowa an application in writing duly verified by the person, firm, corporation, partnership, or association proposing to sell or offer to sell at retail any goods, wares, or merchandise tangible personal property, or to engage in or conduct a temporary or intermittent business for the sale at retail of any goods, waresywares, or merchandise tangible personal property.

Section 9C.3, subsections 22, ,5, 56, , 6 , and 77, , Code 2021, are amended to read as follows:

If the application be made by an agent, bailee, consignee, or employee, the application shall so state and set out the name and address of such agent, bailee, consignee, or employee and shall also set out the name and address of the owner of the goods, wares^wares, and merchandise tangible personal property to be sold or offered for sale.

The date or dates upon which said goods, wares, or merchandise tangible personal property shall be sold or offered for sale, or the date or dates upon which it is the intention of the applicant to engage in or conduct a temporary or iintermittent nbusiness. t e r m i b u s i n e s s .

Section 9C.4, subsection 1, Code 2021, is amended tto orread eas aafollows: s f o l l o w s :

At the time and as part of filing the application, the applicant shall file with the secretary of state a bond, with sureties to be approved by the secretary of state, in a penal sum two times the value of the goods, wares or merchandise tangible personal property to be sold or offered for sale or the average inventory to be carried by such transient merchant engaged in or conducting an intermittent or temporary business as the case may be as shown by the application, running to the state of Iowa, for the use and benefit of any purchaser of any merchandiaGmerchandise tangible personal property from such transient merchant who might have a cause of action of any nature arising from or out of such sale against the applicant or the owner of such merchandise property if other than the applicant.

However, the aggregate liability of the surety for all such taxes, fines, and causes of action shall in no event exceed the principal sum of such bbond. o n d .

22 ffollows: o l l o w s ;

C9C.6 .License fee.

LicensePrior fto eissuing ethe .said transient merchant’s license, the secretary of state shall collect for the state of Iowa a license fee in the sum of twenty-five dollars for each day the applicant, as shown by the application, shall propose to sell or offer for sale any goods, wares or merchandise tangible personal property, or for each day the applicant, as shown by the application, proposes to engage in and conduct a business as a transient merchant as the case may be.

Prior to issuing the said transient merchant's license, the secretary of state shall collect for the state of Iowa a license fee in the sum of twenty-five dollars for each day the applicant, as shown by the application, shall propose to sell or offer for sale any goodsy wares or morchandiso tangible personal property, or for each day the applicant, as shown by the application, proposes to engage in and conduct a business as a transient merchant as the case may be.

Section 9C.7, Code 2021, is amended to read as ffollows: o l l o w s :

It shall be unlawful for any transient merchant making sales or engaging in or conducting a business under a transient merchant'smerchant’s license to make any false or misleading statements or representation regarding any article sold or offered for sale by such transient merchant as to condition, quality, original cost, or cost to such transient merchant of any aarticle rsold tor ioffered sfor osale lor oto rosell for foffer efor f o s a l o rt os e lo ro f f ef o r sale goods, wares or merchandise tangible personal property of a value in excess of the value thereof as shown by said application, or to sell or offer for sale at retail any goodsygoods, wares or morchandisomerchandise tangible personal property, or to engage in or conduct an intermittent or temporary business on any days or at any place other than those shown by such license.

Section 15.331A, subsection 1, Code 2021, is aamended mto eread nas tfollows: o r e aa sf o l l o w s :

The eligible business shall be entitled to a refund of the sales and use taxes paid under chapter 423 for gas, electricity, water, or sewer utility services, goods, wares, or merchandise tangible personal property, or on services rendered, furnished, or performed to or for a contractor or ssubcontractor uand bused cin othe nfulfillment tof ra n u s ei nt h e f u l f i l l a wwritten rcontract i t t e n c o n t r a c t relating to the construction or equipping of a facility that is part of a project of the eligible business.

Section 15.331A, subsection 2, paragraphs a and b.b, Code 2021, are amended to read as follows:

Codea. 2021, are amended to read as follows:

aThe .contractor or subcontractor shall state under oath, on forms provided by the department of revenue, the amount of the sales of goods, wares, or merchandise tangible personal property or services rendered, furnished, or performed including water, sewer, gas, and electric utility services upon which sales or use tax has been paid prior to the project completion, and shall file the forms with the eligible business before final settlement is made.

Theb. contractor or subcontractor shall state under oath, on forms provided by the department of revenue, the amount of the sales of goods, wares, or merchandiao tangible personal property or services rendered, furnished, or performed including water, sewer, gas, and electric utility services upon which sales or use tax has been paid prior to the project completion, and shall file the forms with the eligible business b e f o r e f i n a l s ei sm a d e .

n t b.

A claim filed by the eligible business in accordance with tthis h i s section sshall h a l l not be denied by reason of a limitation provision set forth in chapter 421 oor r4423. 2 3 .

Section 15.331C, Code 2021, is amended to read as ffollows: o l l o w s :

An eligible business may claim a corporate tax credit in an amount equal to the sales and use taxes paid by a third-party developer under chapter 423 for gas, electricity, water, or sewer utility services, goods, wares, or merchandise tangible personal property,property , or on services rendered, furnished, or performed to or for a contractor or subcontractor and used in the fulfillment of a written contract relating to the construction or equipping of a facility of the eligible Senate File 366, p.

An eligible business may elect to receive a refund of all or a portion of an uunused ntax ucredit. st a xc r e d i t .

The aggregate combined total amount oof fttax refunds under section 15.331A for taxes attributable to racks, shelving, and conveyor equipment to be used in a rwarehouse eor fdistribution ucenter nuand nof dtax scredit ecertificates cissued tby ithe odepartment nof 1revenue 5for .the taxes paid and attributable to racks, shelving, and conveyor equipment to be used in a warehouse or distribution center shall not exceed five hundred thousand dollars in a fiscal year.

3t a x e s a t t r i b u t a b l e to racks, shelving, and conveyor equipment to be used in a warehouse or distribution center and o f tax c r e d i t certificates issued by the department of revenue for the taxes paid and attributable to racks, shelving, and conveyor equipment t ob eu s e i n aw a r e h o ud i s t r i b c e n ts h a ln o t exceed five hundred thousand dollars in a fiscal year.

The eligible business shall not claim a tax credit under this section unless a tax credit certificate issued by the department of revenue is included with the taxpayer'staxpayer’s tax return for the tax year for which the tax credit is claimed.

A tax credit certificate shall contain the eligible business'sbusiness’s name, address, tax identification number, the amount of the tax credit, and other information deemed necessary by the department of revenue.

Section 321.105A, subsection 3, paragraph ff, , subparagraph (1), Code 2021, is amended to read as follows:

(1) Vehicles leased to entities listed in section 423.3, subsections 17, 18, 19, 20, 21, 22, 26, 27, 28, 31, and 79, to the extent that those entities are exempt from the tax imposed on the sale of tangible personal property, consisting of goods, wares, or merchandise, sold at retail in the state to consumers oor ruusers. s e r s .

Section 423.1, subsection 50, Code 2021, is amended tto orread eas aafollows: s f o l l o w s :

"^Sales"a. or ^sale" means any transfer, exchange, or barter, conditional or otherwise, in any manner or by any means whatsoever, for consideration, including but not limited to any such transfer, exchange, or barter on a subscription basis.

“Sales” or “sale” means any transfer, exchange, or barter, conditional or otherwise, in any manner or by any means whatsoever, for consideration, including but not limited to any such transfer, exchange, or barter on a subscription basis.

'^Sales''“Sales” or '^sale"“sale” includes a rental.

Section 423.2, subsection 1, unnumbered paragraph ,1, Code 2021, is amended to read as follows:

Section 423.3, subsections 113, 346, , 4 6 , 47A, 775, 5 , and 776, 6 , Code 2021, are amended to read as follows:

26 publisher of the following;following:

photographic materials;materials:

'^Printer''“Printer” means that portion of a person'sperson’s business engaged in printing that completes a finished product for ultimate sale at retail or means that portion of a person'sperson’s business used to complete a finished printed packaging Senate PileFile 366, p.

"^Printer"“Printer” does not mean an in-house printer who prints or copyrights its own materials.

§20.3 in the furnishing of telecommunications services oon n a commercial basis.

For the purposes of this subsection, "^central“central office equipment"equipment” means equipment utilized in the initiating, processing, amplifying, switching, or monitoring of telecommunications services.

"^Transmission“Transmission equipment"equipment” means equipment utilized in the process of sending information from one location to another location.

"^Central“Central office equipment"equipment” and '^transmission“transmission equipment"equipment” also include ancillary equipment and apparatus which support, regulate, control, repair, test, or enable such equipment to accomplish its function.

For the purposes of this exemption, "^aircraft"“aircraft” means aircraft used in a scheduled iinterstate nfederal taviation eadministration rcertificated sair t a t e f e d e r a l a v i a t ic e r t i f i a i r e da t i o n carrier operation.

and the sales price of all services used for aircraft repair, remodeling.remodeling, Senate File 366, p.

Senate File 366, p.

For the purposes of this exemption, "^aircraft"“aircraft” means aircraft used in nonscheduled interstate federal aviation administration certificated air carrier operation operating under 14 C.F.R.

Section 423.3, subsection 47, paragraph a, unnumbered paragraph 1, Code 2021, is amended to read as ffollows: o l l o w s :

Section 423.3, subsection 47, paragraph c, unnumbered paragraph 1, Code 2021, is amended to read as ffollows: o l l o w s :

Section 423.3, subsection 78, paragraphs a and c.c, Code 2021, are amended to read as follows:

Code 2021, are amended to read as follows:

Section 423.3, subsection 82, paragraph a.a, Code 2021, is amended to read as follows:

Code 2021, is amended to read a s follows:

Section 423.3, subsection 88, Code 2021, is amended tto orread eas afollows: a sf o l l o w s :

The sales price from the sale of building materials, supplies, goodsygoods, waresywares, or merchandise tangible personal property sold to 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 use by low-income families and where the building materials, supplies, goods, wares, or merchandise or tangible personal property are used in the construction, remodeling, or rehabilitation of such dwellings.

Section 423.3, subsection 89, paragraphs a and b.b, Code 2021, are amended to read as follows:

Code 2021, are amended to read as follows:

The sales price of all goods, wares, or merchandise tangible personal property sold, or of services furnished, wwhich hare iused cin hthe aufulfillment sof ei nt h e f u l f i l l a wwritten rconstruction i t t e n c o n s t r u c t i o n contract for the original construction of a building or structure to be used as a collaborative educational facility.

The sales price of all goods^goods, wares,—orwares, or merchandise tangible personal property sold, or of services furnished, which are used in the fulfillment of a written construction contract for the construction of additions or modifications to a building or structure used as part of a collaborative educational facility.

Section 423.3, subsection 92, paragraph d.d, Code 2021, is amended to read as follows:

Code 2021, is amended to read as follows:

Failure to meet eighty percent of the minimum investment amount requirement specified in paragraph “b” within the first six years of operation from the date the web search portal business initiates site preparation activities will result in the web search portal business losing the right to claim this exemption and the web search portal business shall pay all sales or use tax that would have been due on the purchase ©s-or rental or use of the items listed in this exemption, plus any applicable penalty and interest imposed by statute.

(1) The purchaser or renter shall be a web search portal bbusiness. u s i n e s s .

Section 423.3, subsection 93, paragraph d.d, Code 2021, is amended to read as follows:

Code 2021, is amended to read as follows:

Failure to meet eighty percent of the minimum investment amount requirement specified in paragraph “b” within the first six years of operation from the date the web search portal business initiates site preparation activities will result in the web search portal business losing the right to claim this web search portal business exemption and the web search portal business shall pay all sales or use tax that would have been due on the purchase or rental or use of the items listed in this exemption, plus any applicable penalty and interest imposed by sstatute. t a t u t e .

and racking systems, cabling, and trays, which are necessary for the maintenance and operation of tthe hdata dcenter abusiness. t c e n tb u s i n e s s .

Section 423.3, subsection 95, paragraph d.d, Code 2021, is amended to read as follows:

Code 2021, is amended to read as follows:

Failure to meet eighty percent of the minimum investment amount requirement specified in paragraph “b” within the first six years of operation from the date the data center business initiates site preparation activities will result in the data center business losing the right to claim this data center business exemption and the data center business shall pay all sales or use tax that would have been due on the purchase or-or rental or use of the items listed in this exemption, plus any applicable penalty and interest imposed by statute.

and are not used in the performance of a contract for a '^project"“project” ^project“project” ' under chapter 419 as defined in that chapter other than goods, wares, or merchandise building materials, supplies, or equipment used in the performance of a contract for a ^^project"“project” "^project"“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 building materials, supplies, or equipment 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.

Section 423.4, subsection 1, paragraph c.c, Code 2021, is amended to read as follows:

Code 2021, is amended to read as follows:

Section 423.31, subsection 4, Code 2021, is amended tto orread eas afollows: a sf o l l o w s :

Section 423B.8, subsection 1, Code 2021, is amended tto orread eas afollows: a s f o l l o w s :

Construction contractors may make application to the department for a refund of the additional local sales and services tax paid under this chapter by reason of taxes paid on goodsygoods, wares»wares, or merchandise building materials, supplies, or equipment under the following conditions:

The goods»goods, waresywares, or merchandise building materials, supplies, or equipment are incorporated into an improvement to real estate in fulfillment of a written contract fully executed prior to the date of the imposition of a local sales and services tax under this chapter.

The refund shall not apply to equipment transferred in fulfillment of a mixed construction ccontract. o n t r a c t .

The contractor has paid to the department or to a rretailer ethe tfull aamount iof tthe hstate eand flocal uatax. m o u o ft h s t a a n dl o c t a x .

DDIVISION IXI VINTEREST IRATE SSET XBY IDIRECTOR NOF IREVENUE N T E RR A T S E B YD I R E C O FR E V E N U E Sec.

Section 421.7, subsection 66, , Code 2021, is amended tto orread eas aafollows: s f o l l o w s :

DDIVISION IXII VASSESSORS I SX I IN A S S E S S O R S Sec.

Section 441.6, subsection 33, , Code 2021, is amended tto orread eas afollows: a s f o l l o w s :

The director of revenue shall adopt rules pursuant to chapter 17A to implement and administer this ssubsection. u b s e c t i o n .

Section 441.17, subsection 22, , Code 2021, is amended tto orread eas afollows: a sf o l l o w s :

Cause to be assessed, in accordance with section 441.21, all the property in the assessor'sassessor’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'sperson’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 aand nadminister athis dsubsection. m i n i t h is u b s e c t i o n .

Section 441.41, Code 2021, is amended to read as ffollows: o l l o w s :

Upon the employment of special counsel described in subsection 1, the assessor shall provide a report to the department of revenue relating to the special counsel including but not limited to the following;following:

DDIVISION IXIII VCONFIDENTIAL IINFORMATION SX—— IDEPARTMENT IOF IREVENUE C O N F I D E I N F O R M A TD E P A R T O FR E V E N U E Sec.

Section 422.20, subsection 5, paragraph a.a, Code 2021, is amended by adding the following new subparagraph:

CodeNEW 2021,SUBPARAGRAPH is. amended by adding the following new subparagraph:

NEW SUBPARAGRAPH.

Section 422.20, subsection 5, paragraph c.c, Code 2021, is amended to read as follows:

Code 2021, is amended to read as follows:

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 relevant or necessary to the resolution or decision of the appeal or case.

Section 422.72, subsection 8, paragraph a.a, Code 2021, is amended by adding the following new subparagraph:

CodeNEW 2021,SUBPARAGRAPH is. amended by adding the following new subparagraph:

NEW(7) SUBPARAGRAPH.A return as defined in section 421.6.

( 7 )A return as defined in section 421.6.

Section 422.72, subsection 8, paragraph c.c, Code 2021, is amended to read as follows:

Code 2021, is amended to read as follows:

Notwithstanding paragraph ,“a”, when making final orders, decisions, or opinions available for public inspection, the department may disclose the items in paragraph "a"“a” if the department determines such information is relevant or necessary to the resolution or decision of the appeal or case.

DDIVISION IXIV VPOWER IOF SATTORNEY X—— IDEPARTMENT VOF PREVENUE O W O FA T T O R N ED E P A R TO FR E V E N U E Sec.

882. 2 .

Section 421.59, subsections 2 and 33, , Code 2021, are aamended mto eread nas dtfollows: or e aa sf o l l o w s :

(1) Upon the request of the department, a receiver shall submit to the department a copy of the court order appointing tthe hreceiver. r e c e i v e r .

cc. .

AAn niindividual nwho dhas ibeen vnamed ias wan hauthorized h a b e e n a m a s a a u t h o r i z e d representative on a fiduciary return of income filed under Senate File 366, p.

(a) A president or chief executive officer, or any other officer of the corporation or association if the president or cchief h i e f executive officer ccertifies ethat rthe tofficer ihas fthe i e s that thehas ther authority to legally bind the corporation or association.

A licensed attorney who has appeared on behalf of the taxpayer or the taxpayer^staxpayer’s probate estate in a court proceeding.

A parent or guardian of a taxpayer who has not reached the age of majority where the same parent or guardian has signed the taxpayer'staxpayer’s return on behalf of the taxpayer.

Authorization under this paragraph automatically terminates when the taxpayer reaches the age of majority pursuant to ssection e599.1. c t 5 9 9 .

1 .

An entity so designated may appoint or remove its own employees to carry out acts authorized by the taxpayer on the entity'sentity’s behalf.

The memorandum of understanding shall adhere to requiromcntarequirements as established by the director department may designate the methods by which such designation and appointments may occur.occur .

The memorandum of understanding shall be signed by the director, the taxpayer, and the third-party entity or an authorisedauthorized representative of the third-party entity.

€-rc. At any time, a taxpayer may unilaterally revoke a memorandum of understanding entered into designation pursuant to this subsection by filing a notice of revocation with the department.

At any time, a taxpayer may unilaterally revoke a memorandum of understanding entered into designation pursuant to this subsection by filing a notice of revocation with the department.

DDIVISION IXV VSALES IAND SXUSE VOTAX NREFUNDS S A L A N U S T A R E F U N D S Sec.

Section 15.331A, subsection 2, paragraph c.c, Code 2021, is amended to read as follows:

Code 2021, is amended to read as follows:

For purposes of this section, "^project“project completion"completion” means the first date upon which the average annualized production of finished product for the preceding ninety-day period at the manufacturing facility operated by the eligible business is at least fifty percent of the initial design capacity of the facility.

This division of this Act applies tto orefund rclaims efiled fon uor nafter dthe ceffective ldate aof ithis mdivision sof fthis iAct. l e d o n o r a f t e r t h e e f f e c t i v e d a t e o f t h i s d i v i s i o n o f t h i s A c t .

C______________________________ H______________________________ AJAKE PCHAPMAN MPAT AGRASSLEY NPresident Pof Athe TSenate G R A S S L E Y P r e s i d e n t o f t h e S e n a t e Speaker of thCHousethe House I hereby certify that this bill originated in the Senate and is known as Senate File 366, Eighty-ninth General Assembly.

W______________________________ .W.

CCHARLES HSMITHSON ASecretary Rof L E S S M I T H S O N Secreftary the Senate Approved _______________, 2021 K______________________________ IKIM MREYNOLDS RGovernor E Y N O L G o v e r n o r