Senate File 512 - Introduced
SENATE FILE
BY COMMITTEE ON WAYS AND
MEANS
(SUCCESSOR TO SSB
1291)
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 providing an individual income tax exemption
5 for certain payments made to nonresident utility workers,
6 and including effective date and retroactive applicability
7 provisions.
8 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 DIVISION III
2 16 INDIVIDUAL INCOME TAX EXEMPTION FOR CERTAIN PAYMENTS MADE
2 17 TO NONRESIDENT ELECTRIC UTILITY WORKERS
2 18 Sec. 3. Section 422.7, Code 2015, is amended by adding the
2 19 following new subsection:
2 20 NEW SUBSECTION. 57. a. Subtract, to the extent included,
2 21 payments received by an individual from an electric utility for
2 22 the following:
2 23 (1) Emergency response work performed in this state for the
2 24 electric utility pursuant to a mutual aid agreement between
2 25 this state and any other state if such emergency response work
2 26 is performed while the individual is a nonresident.
2 27 (2) Training received in this state from the electric
2 28 utility if such training is received while the individual is
2 29 a nonresident.
2 30 b. For purposes of this subsection, "electric utility" means
2 31 the same as defined in section 476.22.
2 32 Sec. 4. Section 422.16, subsection 1, Code 2015, is amended
2 33 by adding the following new paragraph:
2 34 NEW PARAGRAPH. f. Nonresidents engaged in emergency
2 35 response work or training meeting the requirements of section
3 1 422.7, subsection 57, are not subject to withholding by the
3 2 applicable electric utility for which such emergency response
3 3 work or training is being performed if the electric utility has
3 4 applied to the department for exemption from the withholding
3 5 requirement and the department has determined that the payments
3 6 received by the nonresidents would be exempt from taxation
3 7 pursuant to section 422.7, subsection 57.
3 8 Sec. 5. EFFECTIVE UPON ENACTMENT. This division of this
3 9 Act, being deemed of immediate importance, takes effect upon
3 10 enactment.
3 11 Sec. 6. RETROACTIVE APPLICABILITY. This division of this
3 12 Act applies retroactively to January 1, 2015, for tax years
3 13 beginning on or after that date.
3 14 EXPLANATION
3 15 The inclusion of this explanation does not constitute agreement with
3 16 the explanation's substance by the members of the general assembly.
3 17 This bill relates to state revenue and finance laws,
3 18 including the sales and use tax, flood mitigation program, and
3 19 individual income tax.
3 20 DIVISION I ==== SALES AND USE TAXES. Division I exempts
3 21 the sales price of all=terrain vehicles and off=road utility
3 22 vehicles used primarily in agricultural production from the
3 23 sales and use tax. Under current law, such vehicles are not
3 24 exempt from sales and use tax unless they are directly and
3 25 primarily used in production of agricultural products.
3 26 "All=terrain vehicle" means a motorized vehicle with not
3 27 less than three and not more than six nonhighway tires that
3 28 is limited in engine displacement to less than 1,000 cubic
3 29 centimeters and in total dry weight to less than 1,200 pounds
3 30 and that has a seat or saddle designed to be straddled by the
3 31 operator and handlebars for steering control.
3 32 "Off=road utility vehicle" means a motorized vehicle with
3 33 not less than four and not more than eight nonhighway tires or
3 34 rubberized tracks that has a seat that is of bucket or bench
3 35 design, not intended to be straddled by the operator, and a
4 1 steering wheel or control levers for control.
4 2 By operation of Code section 423.6, an item exempt from the
4 3 imposition of the sales tax is also exempt from the use tax
4 4 imposed in Code section 423.5.
4 5 DIVISION II ==== FLOOD MITIGATION PROGRAM. Division II adds
4 6 the director of revenue, or a designee of the director, as an
4 7 ex officio, nonvoting member of the flood mitigation board
4 8 created in Code chapter 418. The flood mitigation board is
4 9 currently composed of nine voting members and four ex officio,
4 10 nonvoting members who are members of the general assembly, and
4 11 is responsible for overseeing the flood mitigation program
4 12 administered by the department of homeland security and
4 13 emergency management.
4 14 DIVISION III ==== INDIVIDUAL INCOME TAX. Division III
4 15 provides an individual income tax exemption for payments
4 16 received by a nonresident from an electric utility for
4 17 emergency response work performed in Iowa for the electric
4 18 utility pursuant to a mutual aid agreement or for training
4 19 received in Iowa from the electric utility. The division
4 20 also provides that nonresidents engaged in such emergency
4 21 response work or training are not subject to individual
4 22 income tax withholding requirements for the exempt payments if
4 23 the electric utility for which such emergency response work
4 24 or training is being performed applies for and receives a
4 25 withholding exemption from the department of revenue. Division
4 26 III takes effect upon enactment and applies retroactively to
4 27 tax years beginning on or after January 1, 2015.
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