Amendment H-8381 to HF 2705

Filed April 19, 2024 in the House by

What it changes

1. By striking page 1, line 1, through page 6, line 8, and inserting: “Section
2. Section 423.2, subsection 1, unnumbered paragraph 1, Code 2024, is amended to read as follows: There is imposed a tax of six percent at a rate specified in subsection 12 upon the sales price of all sales of tangible personal property, sold at retail in the state to consumers or users except as otherwise provided in this subchapter . Sec.
3. Section 423.2, subsections 2 and 3, Code 2024, are amended to read as follows:
4. A tax of six percent at a rate specified in subsection 12 is imposed upon the sales price of the sale or furnishing of gas, electricity, water, heat, pay television service, and communication service, including the sales price from such sales by any municipal corporation or joint water utility furnishing gas, electricity, water, heat, pay television service, and communication service to the public in its proprietary capacity, except as otherwise provided in this subchapter , when sold at retail in the state to consumers or users.
5. A tax of six percent at a rate specified in subsection 12 is imposed upon the sales price of all sales of tickets or admissions to places of amusement, fairs, and athletic events except those of elementary and secondary educational institutions. A tax of six percent at a rate specified in subsection 12 is imposed on the sales price of an entry fee or like charge imposed solely for the privilege of participating in an activity at a place of amusement, fair, or athletic event unless the sales price of tickets or admissions charges for observing the same activity are taxable under this subchapter . A tax of six percent at a rate specified in subsection 12 is imposed upon that part of private club membership fees or charges paid for the privilege of participating in any athletic sports provided club members. Sec.
6. Section 423.2, subsection 4, paragraph a, Code 2024, is amended to read as follows: a. A tax of six percent at a rate specified in subsection 12 is imposed upon the sales price derived from the operation of all forms of amusement devices and games of skill, games of chance, raffles, and bingo games as defined in chapter 99B , and card game tournaments conducted under section 99B.27 , that are operated or conducted within the state, the tax to be collected from the operator in the same manner as for the collection of taxes upon the sales price of tickets or admission as provided in this section . Nothing in this subsection shall legalize any games of skill or chance or slot-operated devices which are now prohibited by law. Sec.
7. Section 423.2, subsection 5, Code 2024, is amended to read as follows:
8. There is imposed a tax of six percent at a rate specified in subsection 12 upon the sales price from the furnishing of services as defined in section 423.1 . Sec.
9. Section 423.2, subsection 7, paragraph a, unnumbered paragraph 1, Code 2024, is amended to read as follows: A tax of six percent at a rate specified in subsection 12 is imposed upon the sales price from the sales, furnishing, or service of solid waste collection and disposal service. Sec.
10. Section 423.2, subsection 8, paragraph a, Code 2024, is amended to read as follows: a. A tax of six percent at a rate specified in subsection 12 is imposed on the sales price from sales of bundled transactions. For the purposes of this subsection , a “bundled transaction” is the retail sale of two or more distinct and identifiable products, except real property and services to real property, which are sold for one nonitemized price. A “bundled transaction” does not include the sale of any products in which the sales price varies, or is negotiable, based on the selection by the purchaser of the products included in the transaction. Sec.
11. Section 423.2, subsection 9, Code 2024, is amended to read as follows:
12. A tax of six percent at a rate specified in subsection 12 is imposed upon the sales price from any mobile telecommunications service, including all paging services, that this state is allowed to tax pursuant to the provisions of the federal Mobile Telecommunications Sourcing Act, Pub. L. No. 106-252, 4 U.S.C. §116 et seq. For purposes of this subsection , taxes on mobile telecommunications service, as defined under the federal Mobile Telecommunications Sourcing Act that are deemed to be provided by the customer’s home service provider, shall be paid to the taxing jurisdiction whose territorial limits encompass the customer’s place of primary use, regardless of where the mobile telecommunications service originates, terminates, or passes through and shall in all other respects be taxed in conformity with the federal Mobile Telecommunications Sourcing Act. All other provisions of the federal Mobile Telecommunications Sourcing Act are adopted by the state of Iowa and incorporated into this subsection by reference. With respect to mobile telecommunications service under the federal Mobile Telecommunications Sourcing Act, the director shall, if requested, enter into agreements consistent with the provisions of the federal Act. Sec.
13. Section 423.2, subsection 10, paragraph a, Code 2024, is amended to read as follows: a. A tax of six percent at a rate specified in subsection 12 is imposed on the sales price of specified digital products sold at retail in the state. The tax applies whether the purchaser obtains permanent use or less than permanent use of the specified digital product, whether the sale is conditioned or not conditioned upon continued payment from the purchaser, and whether the sale is on a subscription basis or is not on a subscription basis. Sec.
14. Section 423.2, subsection 12, Code 2024, is amended by striking the subsection and inserting in lieu thereof the following:
15. a. For the period beginning January 1, 2025, and ending December 31, 2050, the sales tax rate is five percent. b. Beginning January 1, 2051, the sales tax rate is four percent. Sec.
16. Section 423.2A, subsection 2, paragraph c, Code 2024, is amended to read as follows: c. Transfer one-sixth one-fifth of the remaining revenues to the secure an advanced vision for education fund created in section 423F.2 . This paragraph “c” is repealed January 1,
17. Sec.
18. Section 423.5, subsection 1, unnumbered paragraph 1, Code 2024, is amended to read as follows: Except as provided in paragraph “b” , an An excise tax at the rate of six five percent of the purchase price or installed purchase price is imposed on the following: Sec.
19. Section 423.5, subsection 1, paragraph b, Code 2024, is amended to read as follows: b. An excise tax at the rate of five percent is imposed on the The use of vehicles subject only to the issuance of a certificate of title and the use of manufactured housing, and on the use of leased vehicles, if the lease transaction does not require titling or registration of the vehicle, on the amount subject to tax as calculated pursuant to section 423.26, subsection
20. Sec.
21. Section 423.5, subsection 4, Code 2024, is amended to read as follows:
22. The use tax rate of six five percent is reduced to five four percent on January 1,
23. Sec.
24. Section 423.43, subsection 1, paragraph b, Code 2024, is amended to read as follows: b. Subsequent to the deposit into the general fund of the state and after the transfer of such revenues collected under chapter 423B , the department shall transfer one-sixth one-fifth of such remaining revenues to the secure an advanced vision for education fund created in section 423F.2 . This paragraph is repealed January 1,
25. Sec.
26. EFFECTIVE DATE. This division of this Act takes effect January 1,
27. ”
28. Title page, line 2, by striking “individual and alternate income tax rates” and inserting “the state sales and use tax”
29. By renumbering as necessary.

Official amendment (PDF) · In the Bill Book