Senate Majority Leader Mike Gronstal:
“We did some things on job creation in this state on making sure that the resources are there to provide for education and training of employees in this state to match the skills to the jobs that are out there and get thousands of Iowans back to work. So I’m pretty excited about some of the things we did for higher education and in particular community colleges. There are disappointments, there are disappointments in every session. I would have really loved to have gotten something done on commercial property taxes in this state. In the end we felt the plan that the Governor was advancing was one that would shift taxes to homeowners and we couldn’t go along with that.”

Video, audio and a transcript can be found at IPTV.

HF 2472—Ethanol Blended Gasoline Tax Rate

FLOOR ACTION:

SF 2342 provides tax credits for the construction and installation of solar energy systems and geothermal heat pumps. It provides a credit for geothermal systems equal to 25 percent of the federal credit. It is not refundable but can be carried forward for 10 years. The solar energy system tax credit is also 50 percent of the federal credit, is not refundable, and can be carried forward for 10 years. The bill also modifies sales and use tax provisions related to property purchased for auto body repair for resale, and creates a sales tax exemption for certain items purchased for use in providing vehicle wash and wax services. [4/26: 45-1 (Beall “no”; Houser, Johnson, Kapucian, Sorenson excused)]

HF 2472 (companion to SF 2340) extends the paired rate system for motor fuel for an additional year, until July 1, 2013. Currently, an excise tax is imposed on each gallon of motor fuel sold in the state. The general tax rate is 20 cents per gallon, but subject to adjustment each 12-month period, based on a formula that produces a paired rate system for ethanol-blended gasoline and other motor fuel. When the paired rate system expires, the tax rate will be uniformly imposed at 20 cents for each gallon. [4/26: 46-0 (Houser, Johnson, Kapucian, Sorenson excused)]

SF 2339—Brownfields and Grayfields Tax Credits

SF 2340—Ethanol Blended Gasoline Tax Rate

SSB 3204—Sales Tax Exemptions and Energy Tax Credits

HF 2459—Sheep and Wool Production

HF 2460—Tax Increment Financing

HF 2464—IDPH Technical Bill

FLOOR ACTION:

SF 2332 makes several changes relating to enhanced 911 emergency telephone systems. Most of the changes are updating Code sections to reflect current terminology. The amount of notification needed before an alternative surcharge referendum is brought before the voters is reduced from 100 days to 60 days. The 21-percent allocation of the wireless surcharge fee to wireless carriers to recover their costs to deliver E911 phase 1 services is struck. Phase 1 has been completed. The amount allocated to the local Public Safety Answering Points (PSAPs) is increased from 25 percent to 46 percent of the wireless surcharge. This will increase funding to PSAPs by about $3.7 million annually (this is the amount deleted from the wireless carriers). The requirements that up to $500,000 annually be applied to specified outstanding wireless E911 Phase 1 obligations and that as much as $159,000 per quarter be allocated equally to joint E911 service boards are deleted since they are no longer needed. Hardware and software for an Internet protocol-enabled next generation network is added as permissible uses of carryover operating surplus moneys.  There is a temporary moratorium on an additional new surcharge until 150 days after submission of the E911 Task Force’s report.

An E911 Task Force is created and will submit a report to the Legislature by December 1, 2012. The bill requires Homeland Security & Emergency Management to convene a task force of stakeholders to consider and offer recommendations regarding needed upgrades and enhancements to the state’s E911 programs. This is to include public safety and emergency management representatives, local public safety answering point personnel, telecommunications service providers and state agencies that are directly involved in administering and providing E911 services. This includes but is not limited to:

** Enhanced technology needs to local E911 public safety answering points to ensure timely, quality emergency response services.

** Identifying new wireless technologies used in E911 service delivery.

** Funding needs to meet state and federal emergency communications technology mandates.

** Potential wireless and wire-line surcharge adjustments to meet E911 service delivery demands, including specific recommendations on surcharge equalization and on the distribution formula of surcharge revenues.

** Local and state E911 administration and governance. [4/23: 49-0 (McKinley excused)]

SF 2339 increases the amount of tax credits that the Economic Development Authority (EDA) may annually allocate under its aggregate tax credit limit in Code section 15.119 to the Redevelopment Tax Credit Program for Brownfields and Grayfields from $5 million to no more than $10 million. This does not increase overall spending on tax credits just allows the EDA Board to make changes to the allocations under the cap. [4/23: 49-0 (McKinley excused)]

HF 2459 is the Sheep Production Check‐off Increase, which authorizes the Sheep Promotion Board to call for a special referendum to ask their members if they want to increase their per-head check‐off from 10¢ to 25¢. If a majority of voters authorize the increase, a second question would be asked: “Would you also authorize the board, by resolution, to raise any additional increases in the future, as long as the board waits three years from the previous increase, provides notice to producers, and the increase can only be 5¢ every three years up to a maximum of 50¢?” This bill came from the Sheep Promotion Board. [4/19: 31-16 (Anderson, Bertrand, Chelgren, Courtney, Dearden, Dix, Dotzler, Dvorsky, Feenstra, Hamerlinck, McCoy, Smith, Sodders, Sorenson, Whitver, Zaun “no”)]

HF 2460 relates to Iowa’s urban renewal law and incremental taxes. The Senate amendment strikes everything in HF 2460 and does the following:

** The amendment requires certain reporting of the counties, cities and rural improvement trustees regarding urban renewal projects, plans and tax increment financing (TIF). Each municipality must file the electronic report with the Department of Management by December 1, 2012.

** Legislative Services Agency is required to do an annual report on the information contained in the reports and this annual report will be sent to the Governor and the Legislature. When a municipality amends or modifies an adopted renewal plan to include an additional urban renewal project, it must hold a public hearing.

** TIF cannot be used for the relocation of a commercial or industrial enterprise not presently located within the municipality unless: (1) The local governing body of the municipality where the business is currently located has a entered into a written agreement with the local governing body of the municipality where the business is proposing to relocate concerning the relocation or has a written agreement concerning the general use of economic incentives to attract commercial or industrial development within those municipalities or (2) The local governing body of the municipality where the commercial or industrial enterprise is proposing to relocate find that the use of TIF is in the public interest (requires written verification).  “Relocation” means the closure or substantial reduction of an enterprise’s existing operations in one area of the state and the initiation of substantially the same operation in the same county or contiguous county in the state.

** A city must get the approval of the county board of supervisors when the city adopts a resolution approving the Local Option Sales Tax (LOST) TIF.

** Restricts the municipality from using Instructional Support Levy for tax increment financing unless the school board by resolution approves the use of the levy. This is effective on April 24, 2012. [4/24: 26-22 party-line (Hamerlinck, McKinley excused)]

HF 2464 makes technical changes and updates to various programs within the Iowa Department of Public Health, including Board of Nursing Home Administrators, inspections of radiation machines, HIV confidentiality, pharmacy pilot programs and the reporting of federal grants with a state match. [4/23: 49-0 (McKinley excused)]

COMMITTEE ACTION:

SF 2340 extends the paired rate system for motor fuel for an additional year, until July 1, 2013. Currently, an excise tax is imposed on each gallon of motor fuel sold in the state. The general tax rate is 20 cents per gallon, but subject to adjustment each 12-month period, based on a formula that produces a paired rate system for ethanol-blended gasoline and other motor fuel. When the paired rate system expires, the tax rate will be uniformly imposed at 20 cents for each gallon. [4/25: short form (Chelgren, McCoy excused)]

SSB 3204 provides tax credits for the construction and installation of solar energy systems and geothermal heat pumps. It provides a credit for geothermal systems equal to 25 percent of the federal credit. It is not refundable but can be carried forward for 10 years. The solar energy system tax credit is also 25 percent of the federal credit, is not refundable, and can be carried forward for 10 years. The bill also modifies sales and use tax provisions related to property purchased for auto body repair for resale, and creates a sales tax exemption for certain items purchased for use in providing vehicle wash and wax services. [4/25: short form (Chelgren, McCoy excused)]

HF 2467—Snowmobiles, ATVs

HF 2460—Tax Increment Financing

HF 2464—IDPH Technical Bill

SSB 3202—Brownfields and Grayfields Tax Credits

FLOOR ACTION:

HF 675 makes significant changes to Code Chapter 572, the Mechanic’s Lien chapter. Currently, Chapter 572 is archaic, cumbersome and difficult to interpret, sometimes resulting in subcontractors failing to get paid for work and filing unenforceable liens. In addition, homeowners sometimes pay double for the work done on their homes because they have no notice of liens that were filed, close on their home and pay the general contractor who sometimes fails to pay a subcontractor. Currently, mechanic’s lien filings are done at the county level. This bill creates a State Construction Registry (SCR), which is Internet-based and administered by the Secretary of State. The SCR will serve as a state-wide central repository where pre-lien notices and mechanics’ liens will be filed and housed. The requirements relating to the SCR apply to residential construction, defined in the bill as “construction on single-family or two-family dwellings occupied or used, or intended to be occupied or used, primarily for residential purposes, and includes horizontal condominiums.” Under the bill:

** General contractors and owner-builders who contract with subcontractors to provide labor and furnish materials on a project will post a “notice of Commencement of Work” to the State Construction Registry website within 10 days of commencement of work on the property. The bill outlines the information required to be included in the notice. The Secretary of State then assigns an SCR number to the project.

** If a general contractor fails to post the notice of commencement of work, a subcontractor may post the notice.

** In order to preserve lien rights, subcontractors will post a “preliminary notice” to the SCR website relating to a residential project for which they are providing labor, services, materials, etc.

** To perfect a lien after filing a preliminary notice, a subcontractor must post the lien to the website that homeowners, bankers, abstracters and others will be able to search for postings related to a property. [4/16: 46-2 (Bartz, Kettering “no”; Horn, Ward excused)]

HF 2467 makes various updates to Department of Natural Resources (DNR) regulations regarding snowmobiles, all-terrain vehicles (ATVs) and personal watercraft. The bill clarifies that the instruction courses that are offered to the operators of snowmobiles, ATVs and personal watercraft are education courses, rather than simply safety courses. This conforms to national standards for these courses. The bill also extends the length of registration for snowmobiles and ATVs from one year to three years, which conforms to existing boat registrations. The fees are adjusted to correspond to this change in registration, so the one-year, $15 registration fee for snowmobiles and ATVs will be replaced with a three-year, $45 fee. The fee paid to county recorders will increase from $2 to $5, which is a net savings of $1 to the owner. The bill expands the definition of public land to include public ice, and makes technical changes to the required equipment for ATVs and snowmobiles. The bill also bans the practice of “water-skipping,” where a rider of a snowmobile will attempt to drive the vehicle across the surface of a waterway (not including an ice-covered waterway). [4/12: 29-18 (Anderson, Bacon, Behn, Bertrand, Chelgren, Dix, Feenstra, Hamerlinck, Hatch, Kettering, McKinley, Seymour, Smith, Sodders, Sorenson, Ward, Whitver, Zaun “no”)]

COMMITTEE ACTION:

HF 2460 relates to Iowa’s urban renewal law and incremental taxes. A Senate Ways and Means amendment strikes everything in HF 2460. The amendment:

** Requires certain reporting of the counties, cities and rural improvement trustees regarding urban renewal projects, plans and tax increment financing (TIF). Each municipality must file the electronic report with the Department of Management by December 1, 2012.

** Requires the Legislative Services Agency to do an annual report on the information contained in the reports, and this annual report will be sent to the Governor and the Legislature. When a municipality amends or modifies an adopted renewal plan to include an additional urban renewal project, they must hold a public hearing.

** TIF cannot be used for the relocation of a commercial or industrial enterprise not presently located within the municipality unless: 1) The local governing body of the municipality where the business is currently located has a entered into a written agreement with the local governing body of the municipality where the business is proposing to relocate or has a written agreement concerning the general use of economic incentives to attract commercial or industrial development within those municipalities; or 2) The local governing body of the municipality where the commercial or industrial enterprise is proposing to relocate and the use of TIF is in the public interest (requires some written verification). “Relocation” means the closure or substantial reduction of an enterprise’s existing operations in one area of the state and the initiation of substantially the same operation in the same county or contiguous county in the state.

** The TIF revenue on wind energy urban renewal areas can only be used for the construction and improvement of roads, bridges and culverts. Wind energy TIFs are limited to 10 years.

** A city must get the approval of the county board of supervisors when the city adopts a resolution approving the Local Option Sales Tax (LOST) TIF. [4/18: 11-3 (Anderson, Bartz, Smith “no”; Quirmbach “pass”)]

HF 2464 makes technical changes and updates to various programs within the Iowa Department of Public Health, including Board of Nursing Home Administrators, inspections of radiation machines, HIV confidentiality and the reporting of federal grants with a state match. [4/18: short form]

SSB 3202 increases the amount of tax credits that the Economic Development Authority may annually allocate under its aggregate tax credit limit in Code section 15.119 to the Redevelopment Tax Credit Program for Brownfields and Grayfields from $5 million to $10 million. This does not increase overall spending on tax credits just allows changes to the allocations under the cap. [4/18: short form]

SF 2326—Renewable energy tax credit

SF 2332—E911 surcharge

SF 2333—Substance abuse provider sales tax exemption

HF 675—Mechanic’s liens

HF 2459—Sheep and wool production

FLOOR ACTION:

SF 2333 provides a sales tax exemption for the sale of certain items to substance abuse providers that receive a block grant from the Iowa Department of Public Health. [4/9: 49-0 (Houser excused)]

SF 2332 makes several changes relating to enhanced 911 emergency telephone systems. Most of the changes are updating Code sections to reflect current terminology. The amount of notification needed before an alternative surcharge referendum is brought before the voters is reduced from 100 days to 60 days. The 21 percent allocation of the wireless surcharge fee to wireless carriers to recover their costs to deliver E911 phase 1 services is struck. Phase 1 has been completed. The amount allocated to the local Public Safety Answering Points (PSAPs) is increased from 25 percent to 46 percent of the wireless surcharge. This will increase funding to PSAPs by about $3.7 million annually (this is the amount deleted from the wireless carriers). The requirements that up to $500,000 annually be applied to specified outstanding wireless E911 phase 1 obligations and that as much as  $159,000 per quarter be allocated equally to joint E911 service boards are deleted since they are no longer needed. Hardware and software for an Internet protocol-enabled next generation network is added as permissible uses of carryover operating surplus moneys.

An E911 Task Force is created and will submit a report to the Legislature by December 1, 2012. The bill requires Homeland Security & Emergency Management to convene a task force of stakeholders to consider and offer recommendations regarding needed upgrades and enhancements to the state’s E911 programs. This is to include public safety and emergency management representatives, local public safety answering point personnel, telecommunications service providers and state agencies that are directly involved in administering and providing E911 services. This includes but is not limited to:

** Enhanced technology needs to local E911 public safety answering points to ensure timely, quality emergency response services.

** Identifying new wireless technologies used in E911 service delivery.

** Funding needs to meet state and federal emergency communications technology mandates.

** Potential wireless and wire-line surcharge adjustments to meet E911 service delivery demands, including specific recommendations on surcharge equalization and on the distribution formula of surcharge revenues.

** Local and state E911 administration and governance. [4/10: 50-0]

SF 2326 provides for an additional 20 megawatts of renewable energy production tax credits under 476C to be available each year beginning 2015 and continuing through 2020, for a total of 100 megawatts of new production tax credits. Wind energy production tax credits under 476C will increase by a maximum of 15 megawatts each year, raising the total wind production tax credits available to 438 megawatts. Non-wind production tax credits will increase by a maximum of 5 megawatts each year, raising the total non-wind production tax credits available to 78 megawatts.

During floor debate, the Senate adopted an amendment that allocated 5 megawatts of the 476C wind energy tax credits to be used for small wind innovation zones. These zones are created by local governments and allow owners of small wind energy systems (100 kwh or less) within the zone to be eligible for the tax credits under 476C. The amendment also set guidelines for projects on the waiting list for 476B tax credits and clarifies eligibility criteria for cogeneration projects associated with ethanol plants that was established by HF 672 last session. [4/10: 41-9 (Behn, Chelgren, Feenstra, Greiner, Hahn, Kettering, McKinley, Seymour, Whitver “no”)]

COMMITTEE ACTION:

SF 2230 requires Iowa’s insurance commissioner to launch a health insurance and cost containment bureau. The group would create methodologies to hold insurance companies accountable for affordable health care throughout the state, which would make billing more transparent and fair. One of the key points would be for the commission to compare typical health procedure costs throughout the state in an “all-payer claims database” to help regulators determine why or if some areas of the state pay substantially more than others. The bureau would include an advisory board made up of seven governor appointees and other non-voting members who would work in an advisory capacity. [4/10: 10-5 (Anderson, Bartz, Chelgren, Feenstra, Smith “no”)]

HF 675 makes significant changes to Code Chapter 572, the Mechanic’s Lien Chapter. Current Chapter 572 is archaic, cumbersome and difficult to interpret, sometimes resulting in subcontractors failing to get paid for work and filing unenforceable liens. In addition, homeowners sometimes pay double for the work done on their homes because they have no notice of liens that were filed, close on their home and pay the general contractor who sometimes fails to pay a subcontractor. Current mechanic’s lien filings are done at the county level. HF 675 creates a State Construction Registry (SCR), which is Internet-based and administered by the Secretary of State. The SCR will serve as a state-wide central repository where pre-lien notices and mechanics’ liens will be filed and housed. The requirements relating to the SCR apply to residential construction, defined in the bill as “construction on single-family or two-family dwellings occupied or used, or intended to be occupied or used, primarily for residential purposes, and includes horizontal condominiums. Under the bill:

**General contractors and owner builders who contract with subcontractors to provide labor and furnish materials on a project will post a “notice of Commencement of Work” to the State Construction Registry website within 10 days of commencement of work on the property. The bill outlines the information required to be included in the notice. The Secretary of State then assigns an SCR number to the project.

**If a general contractor fails to post the notice of commencement of work, a subcontractor may post the notice.

**Subcontractors, in order to preserve lien rights, will post a “preliminary notice” to the SCR website relating to a residential project for which they are providing labor, services, materials, etc.

**To perfect a lien after filing a preliminary notice, a subcontractor must post the lien to the website, where homeowners, bankers, abstracters, etc., will be able to search for postings related to a property. [4/10: short form (Bartz “no”)]

HF 2459 is the Sheep Production Check‐off Increase, which authorizes the Sheep Promotion Board to call for a special referendum to ask their members if they want to increase their per-head check‐off from 10¢ to 25¢. If a majority of voters authorize the increase, a second question would be asked: “Would you also authorize the board, by resolution, to raise any additional increases in the future, as long as the board waits three years from the previous increase, provides notice to producers, and the increase can only be 5¢ every three years up to a maximum of 50¢?” This bill came from the Sheep Promotion Board. [4/10: short form (Chelgren, Smith, Zaun “no”)]

SF 2223 – Updates snowmobile, ATV, and personal watercraft regulations

SF 2272—E911 Surcharge

SF 2309—Sales Tax E-Fairness

SF 2318—Iowa Health Information Network

SF 2328—Iowa Department of Revenue Technical Bill

SF 2335—Income Tax Form Check Offs

SSB 3185—Substance Abuse Provider sales tax exemption

FLOOR ACTION:

SF 2318 returned from the House with an amendment. It provides for the creation of a statewide health information network referred to as the Iowa Health Information Network (IHIN). It also provides for components that are critical to its development and operation. The network will provide for the secure electronic sharing of health information. The bill specifies the duties of the Department of Public Health in the day-to-day operations of the IHIN. The bill creates an IHIN fund in the state treasury.  The Senate concurred with the House amendment. [4/4: 44-2 (Anderson, Sorenson “no”; Bertrand, Horn, Houser, Kapucian excused)]

SF 2328 is the Department of Revenue’s technical bill. It provides technical and clean-up changes to the Iowa Code. It has sections dealing with the Enterprise Zone Program, Redevelopment Tax Credit, updates the name of alcohol fuels, corrects filing requirements, makes interest payments consistent, makes filing requirements consistent, deletes obsolete sections, corrects Code references, deletes repealed references, and clarifies the definition of cigarette vending machines to include machines that assemble and dispense cigarettes after payment or the insertion of loose tobacco product. Currently, cigarettes vended from such machines are subject only to the loose tobacco tax rate (50 percent of the wholesale sales price), which is less than the cigarette tax rate ($1.36 per package of 20; $1.70 per package of 25). [4/4: 44-1 Chelgren “no” (Bertrand, Boettger, Horn, Houser, Seymour excused)]

SF 2329 from Economic Growth authorizes the Department of Revenue to rebate sales tax collected by retailers on purchases made at a baseball and softball tournament facility and movie site. The rebate of sales tax only applies to sales tax collected on transactions occurring on or after January 1, 2014, and before January 1, 2024. The total amount that may be rebated is $16.5 million. [4/3: 34-14 (Behn, Chelgren, Dearden, Dix, Ernst, Hamerlinck, Kettering, McKinley, Seymour, Smith, Sorenson, Ward, Whitver, Zaun “no”)]

SF 2330 from Economic Growth relates to the collection of sales and use taxes by retailers maintaining a place of business in this state, agreements relating to the collection of sales and use taxes and sales of tangible personal property and services of state agencies. State sales tax is estimated to increase by $4.7 million in FY13; $5.3 million in FY14; $5 million in FY15; and $6.8 million in FY16. [4/3: 48-0 (Bertrand, Horn excused)]

SF 2335 relates to the income tax checkoffs for the Child Abuse Prevention Program Fund, the Veterans Trust Fund and Volunteer Fire Fighter Preparedness Fund. Code section 422.12E limits to four the number of income tax checkoffs that can appear on the income tax return. When the same four income tax return checkoffs have been provided on the income tax return for two consecutive years, the two checkoffs for which the least amount has been contributed through March 15 of the second tax year are automatically repealed. The bill reenacts as new the checkoffs for the Child Abuse Prevention Program Fund, the Veterans Trust Fund and Volunteer Fire Fighter Preparedness Fund. [4/3: 48-0 (Bertrand, Horn excused)]

COMMITTEE ACTION:

SF 2223 makes various updates to Department of Natural Resources (DNR) regulations regarding snowmobiles, all-terrain vehicles (ATVs) and personal watercraft. The bill clarifies that the instruction courses that are offered to the operators of snowmobiles, ATVs and personal watercraft are education courses, rather than simply safety courses. This conforms to national standards for these courses. The bill also extends the length of registrations for snowmobiles and ATVs from one year to three years, which conforms to existing boat registrations. The fees are adjusted to correspond to this change in registration, so the one-year, $15 registration fee for snowmobiles and ATVs will be replaced with a three-year, $45 fee. The fee paid to county recorders will increase from $2 to $5, which is a net savings of $1 to the owner. The bill expands the definition of public land to include public ice, and makes technical changes to the required equipment for ATVs and snowmobiles. The bill also bans the practice of “water-skipping,” where rider of a snowmobile will attempt to drive the vehicle across the surface of a waterway (not including an ice-covered waterway).

The bill will also require residents who use their snowmobile on public land to purchase a user permit in addition to their registration permit, which has the effect of increasing the cost to residents to ride a snowmobile on public lands from $15 to $30. Currently, the user permit is only purchased by non-residents who use public lands for snowmobile riding. This change was requested by the state snowmobile association because it would increase the amount of money that is available for trail development and maintenance in the state. (4/4: short form, without recommendation (Zaun “no”)]

SF 2272 makes several changes relating to enhanced 911 emergency telephone systems. Most of the changes are updating Code sections to reflect current terminology. The amount of notification needed before an alternative surcharge referendum is brought before the voters is reduced from 100 days to 60 days. The 21 percent allocation of the wireless surcharge fee to wireless carriers to recover their costs to deliver E911 phase 1 services is struck. Phase 1 has been completed. The bill establishes a $.33 surcharge on prepaid wireless phones. The amount allocated to the local Public Safety Answering Points (PSAPs) is increased from 25% to 46% of the wireless surcharge. This will increase funding to PSAPs by about $3.7 million annually (this is the amount deleted from the wireless carriers). The requirements that up to $500,000 annually be applied to specified outstanding wireless E911 phase 1 obligations and that as much as  $159,000 per quarter be allocated equally to joint E911 service boards are deleted since they are no longer needed. Hardware and software for an Internet protocol-enabled next generation network is added as permissible uses of carryover operating surplus moneys.

An E911 Task Force is created and will submit a report to the Legislature by December 1, 2012. Homeland Security & Emergency Management will convene a task force of stakeholders to consider and offer recommendations regarding needed upgrades and enhancements to the state’s E911 programs. This is to include public safety and emergency management representatives, local public safety answering point personnel, telecommunications service providers and state agencies that are directly involved in administering and providing E911 services. This includes but is not limited to:
** Enhanced technology needs to local E911 public safety answering points to ensure timely, quality emergency response services.
** ID of new wireless technologies used in E911 service delivery.
** Funding needs to meet state and federal emergency communications technology mandates.
** Potential wireless and wire-line surcharge adjustments to meet E911 service delivery demands, including specific recommendations on surcharge equalization and on the distribution formula of surcharge revenues.
** Local and state E911 administration and governance. [4/4: short form]

SSB 3185 provides a sales tax exemption for the sale of certain items to substance abuse treatment providers who receive a block grant from the Iowa Department of Public Health. [4/4: short form]

SF 2168—Sales tax rebate

SF 2309—Sales tax e-fairness

SF 2322—Income tax credit for firefighters and EMS personnel

SSB 3131—Department of Revenue Technical Bill

SSB 3196—Income tax form check offs

HF 2166—Streamlined sales tax agreement

FLOOR ACTION:

SF 2322 provides volunteer firefighters and emergency medical personnel with an individual income tax credit of $50. The tax credit applies to tax years beginning January 1, 2013. [3/26: 50-0]

HF 2166 includes changes recommended by the Iowa Department of Revenue to maintain Iowa’s compliance with the Streamlined Sales Tax Governing Board Agreement. Iowa’s participation in the Streamlined Project brings in approximately $13 million per year in sales and use tax revenue collected from remote retailers. [3/26: 50-0]

COMMITTEE ACTION:

SF 2050 provides for an additional 20 MW of renewable energy production tax credits under 476C to be available each year beginning 2015 and continuing through 2020, for a total of 100 MW of new production tax credits. Wind energy production tax credits under 476C will increase by a maximum of 15 MW each year, raising the total wind production tax credits available to 438 MW. Non-wind production tax credits will increase by a maximum of 5 MW each year, raising the total non-wind production tax credits available to 78 MW. [3/28: short form (Chelgren “no”)]

SF 2168 from Economic Growth authorizes the Department of Revenue to rebate sales tax collected by retailers on purchases made at a baseball and softball tournament facility and movie site. The rebate of sales tax only applies to sales tax collected on transactions occurring on or after January 1, 2014, and before January 1, 2024. The total amount that may be rebated is $16.5 million. [3/28: short form (Chelgren, Smith, Zaun “no”)]

SF 2309 from Economic Growth relates to the collection of sales and use taxes by retailers maintaining a place of business in this state, agreements relating to the collection of sales and use taxes and sales of tangible personal property and services of state agencies. State sales tax is estimated to increase by $4.7 million in fiscal year 2013; $5.3 million in fiscal year 2014; $5 million in fiscal year 2015; and $6.8 million in fiscal year 2016. [3/28: short form]

SSB 3131 is the Department of Revenue’s technical bill. It provides technical and clean-up changes to the Iowa Code. It has sections dealing with the Enterprise Zone Program, Redevelopment Tax Credit, updates the name of alcohol fuels, corrects filing requirements, makes interest payments consistent, makes filing requirements consistent, deletes obsolete sections, corrects Code references, deletes repealed references, and clarifies the definition of cigarette vending machines to include machines that assemble and dispense cigarettes after payment or the insertion of loose tobacco product. Currently, cigarettes vended from such machines are subject only to the loose tobacco tax rate (50 percent of the wholesale sales price), which is less than the cigarette tax rate ($1.36 per package of 20; $1.70 per package of 25). [3/21: short form]

SSB 3196 relates to the income tax checkoffs for the Child Abuse Prevention Program Fund, the Veterans Trust Fund and Volunteer Fire Fighter Preparedness Fund. Code section 422.12E limits to four the number of income tax checkoffs that can appear on the income tax return. When the same four income tax return checkoffs have been provided on the income tax return for two consecutive years, the two checkoffs for which the least amount has been contributed through March 15 of the second tax year are automatically repealed. The bill reenacts as new the checkoffs for both the Child Abuse Prevention Program Fund, the Veterans Trust Fund and Volunteer Fire Fighter Preparedness Fund. [3/28: short from]

SF 2319—Property Tax Assessments for Low Income Rental Properties

SSB 3195—Firefighters and EMS Tax Credit

HF 2166—Streamlined Sales Tax Agreement

FLOOR ACTION:

SF 2319 requires property that is rented or leased to low-income individuals and families under criteria of the HOME Investment Partnership Program of the federal National Affordable Housing Act of 1990 to be assessed in the same manner as properties under Section 42 of the Internal Revenue Code. They are assessed based upon the actual amount that the individual or family pays for the rental or lease. The assessment takes into account the extent to which that reduced rent reduces the market value of the property. This bill would treat HOME projects in the same manner. [3/21: 46-3 (Kettering, McKinley, Zaun “no”; Hatch “present”)]

COMMITTEE ACTION:

SF 2291 establishes and funds a State Emergency Food Program:

** A total of $2 million is allocated to purchase and distribute product, as well as educate recipients on how to use the products to form and maintain a nutritional diet. This comprises:

>> $1.7 million to purchase nutritional products to be allocated to the eight Feeding America food banks affiliated with the Iowa Food Bank Association (IFBA) based on the federal commodities distribution formula.  There is an emphasis on products that originate from Iowa, or by purchasing the products will be of economic benefit to the state.

>> $200,000 for distribution and storage of products.

>> $100,000 in competitive grant funds to be distributed to emergency feeding organizations that wish to implement innovative nutrition education programs.

** Creates a 10 percent tax credit for farmers that donate products that are immediately consumable by individuals.

The Ways and Means Committee adopted an amendment that states the value of the commodities (for a tax credit) is determined in the same manner as the federal level. In addition, a person may choose a tax credit or a tax deduction, not both. The tax credit is estimated to cost the state general fund $40,000 or less annually. [3/21: 9-6 (party-line)]

SSB 3195 provides volunteer firefighters and emergency medical personnel with an individual income tax credit of $50. The tax credit applies to tax years beginning January 1, 2013. [3/21: short form]

HF 2166 includes changes recommended by the Iowa Department of Revenue to maintain Iowa’s compliance with the Streamlined Sales Tax Governing Board Agreement. Iowa’s participation in the Streamlined Project brings in approximately $13 million per year in sales and use tax revenue collected from remote retailers. [3/21: short form]

SF 2167—Combination Hunting and Fishing Licenses

SSB 3045—Streamlined Sales Tax Agreement

SSB 3046—Property Tax Assessments for Low Income Rental Properties

COMMITTEE ACTION:

SF 2166 provides for the creation of statewide health information network referred to as the Iowa Health Information Network (IHIN). It also provides for components that are critical to its development and operation. The network will provide for the secure electronic sharing of health information. The bill specifies the duties of the Department of Public Health in the day-to-day operations of the IHIN. The bill creates an IHIN fund in the state treasury. [3/7: short form]

SF 2167 establishes new combination licenses for hunting and fishing. The new licenses allow an individual to purchase a three-year hunting license, a three-year fishing license or a combination hunting and fishing license. These combination licenses would represent a savings over the standard annual hunting or fishing license. The bill also allows a fisher the opportunity to pay $10 for a third fishing line. Current law restricts fishers to no more than two lines. The bill also combines the existing wildlife habitat fee into the cost of a hunting license that requires the purchase of the wildlife habitat fee. This will save the license buyer a $2 administrative fee that they would have had to pay on the purchase of a separate wildlife habitat fee. [3/7: short form]

SSB 3045 includes changes recommended by the Iowa Department of Revenue to maintain Iowa’s compliance with the Streamlined Sales Tax Governing Board Agreement. Iowa’s participation in the Streamlined Project brings in approximately $13 million per year in sales and use tax revenue collected from remote retailers. [3/7: short form]

SSB 3046 requires property that is rented or leased to low-income individuals and families under criteria of the HOME Investment Partnership Program of the federal National Affordable Housing Act of 1990 to be assessed in the same manner as properties under Section 42 of the Internal Revenue Code. They are assessed based upon the actual amount that the individual or family pays for the rental or lease. The assessment takes into account the extent to which that reduced rent reduces the market value of the property. This bill would treat HOME projects in the same manner. [3/7: short form]

FLOOR ACTION:

HF 2150 updates the Iowa Code references to the Internal Revenue Code to make federal income tax revisions enacted by Congress in 2011 applicable for Iowa income tax purposes. This year the bill simply updates the date to 2012. There were no federal tax changes in 2011. There is no fiscal impact to this bill. [2/28: 50-0]