SF 200: Relating to the distribution of water exempt from taxation and the use of tax exemption certificates, and providing civil penalties

What it does

This bill relates to the distribution of water exempt from taxation. The bill requires a water utility to accept and retain a valid exemption certificate and shall not unnecessarily require a person who presents a valid exemption certificate to obtain a sales or water service tax refund from the department of revenue rather than receiving the exemption. A water utility that does not accept a valid exemption certificate shall pay a civil penalty to the department of revenue equal to the amount of tax refunded to the person who possessed a valid exemption certificate plus interest. The bill defines “exemption certificate” and “water utility”. The department of revenue is required to adopt rules to administer the bill.

Senate subcommittee · named February 11, 2025

• Sen. Jason Schultz (R) · jason.schultz@legis.iowa.gov
• Sen. Dawn Driscoll (R) · dawn.driscoll@legis.iowa.gov
• Sen. Thomas Townsend (D) · thomas.townsend@legis.iowa.gov

Lobbying · 1 for, 1 against

For: Iowa Select Farms, L.L.P.

Against: Iowa Rural Water Association

In plain words

1. February 4, 2025Filed in the Senate and sent to the Ways and Means committee
2. February 11, 2025Senate subcommittee named: Schultz, Driscoll and Townsend