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House
File
1052
-
Introduced
HOUSE
FILE
1052
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HSB
90)
A
BILL
FOR
An
Act
relating
to
state
and
local
taxation
and
regulations
by
1
changing
certain
tax
credits,
cigarette
and
tobacco-related
2
regulations,
and
certain
city
budget
certification
3
deadlines,
providing
for
penalties,
and
including
4
retroactive
applicability
and
effective
date
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
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DIVISION
I
1
CIGARETTE
AND
TOBACCO-RELATED
REGULATIONS
2
Section
1.
Section
453A.1,
subsection
27,
Code
2025,
is
3
amended
to
read
as
follows:
4
27.
“State
permit”
shall
mean
and
include
all
permits
issued
5
by
the
department
to
distributors,
wholesalers,
and
retailers
6
under
this
chapter
except
the
permits
issued
to
retailers
7
approved
by
cities
and
counties
pursuant
to
sections
453A.13
8
and
453A.47A
.
9
Sec.
2.
Section
453A.6,
subsection
8,
paragraph
a,
Code
10
2025,
is
amended
to
read
as
follows:
11
a.
Pay
directly
to
the
department,
in
lieu
of
the
tax
12
under
subsection
1
,
a
tax
equal
to
three
and
six
hundredths
13
cents
on
each
cigarette
dispensed
from
such
machine.
Payments
14
made
under
this
paragraph
shall
be
remitted
to
the
department
15
electronically.
16
Sec.
3.
Section
453A.8,
subsection
2,
Code
2025,
is
amended
17
to
read
as
follows:
18
2.
Orders
for
cigarette
tax
stamps,
including
the
payment
19
for
such
stamps,
shall
be
sent
direct
made
to
the
department
20
electronically
on
a
form
to
be
prescribed
by
the
director,
21
except
as
provided
in
subsection
6
.
22
Sec.
4.
Section
453A.13,
subsection
2,
paragraph
a,
Code
23
2025,
is
amended
to
read
as
follows:
24
a.
The
department
shall
issue
state
permits
to
distributors,
25
wholesalers,
and
cigarette
vendors,
and
retailers
that
26
make
delivery
sales
of
alternative
nicotine
products
and
27
vapor
products,
subject
to
the
conditions
provided
in
this
28
subchapter
.
If
an
out-of-state
retailer
makes
delivery
29
sales
of
alternative
nicotine
products
or
vapor
products,
an
30
application
shall
be
filed
with
the
department
electronically
31
and
a
permit
shall
be
issued
for
the
out-of-state
retailer’s
32
principal
place
of
business.
Cities
may
issue
approve
retail
33
permits
to
retailers
permit
applications
for
applicants
with
34
a
place
of
business
located
within
their
respective
limits.
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County
boards
of
supervisors
may
issue
approve
retail
permits
1
to
retailers
permit
applications
for
applicants
with
a
place
of
2
business
in
their
respective
counties,
outside
of
the
corporate
3
limits
of
cities.
Upon
approval
of
a
retail
permit
application
4
by
a
city
or
county,
the
department
shall
issue
the
permit
to
5
the
applicant
on
behalf
of
the
city
or
county,
in
the
manner
6
determined
by
the
department.
A
city
or
county
shall
use
the
7
electronic
portal
of
the
department
to
process
retail
permit
8
applications.
A
city
or
county
that
is
unable
to
use
the
9
electronic
portal
of
the
department
may
request
permission
from
10
the
director
to
process
retail
applications
by
another
method.
11
Sec.
5.
Section
453A.13,
subsection
2,
paragraph
c,
Code
12
2025,
is
amended
to
read
as
follows:
13
c.
A
city
or
county
shall
submit
a
duplicate
of
any
14
application
for
a
retail
permit
to
the
department
within
thirty
15
days
of
the
issuance.
The
department
shall
submit
the
current
16
list
of
all
retail
permits
issued
to
the
department
of
health
17
and
human
services
by
the
last
day
of
each
quarter
of
a
state
18
fiscal
year.
19
Sec.
6.
Section
453A.13,
subsection
3,
paragraph
a,
Code
20
2025,
is
amended
to
read
as
follows:
21
a.
All
permits
provided
for
in
this
subchapter
shall
expire
22
on
June
30
of
each
year.
A
permit
shall
not
be
granted
or
23
issued
until
the
applicant
has
paid
the
fees
to
the
department
24
required
in
this
subchapter
for
the
next
period
ending
on
June
25
30
next,
to
the
department
or
the
city
or
county
granting
the
26
permit,
the
fees
provided
for
in
this
subchapter
.
The
annual
27
state
permit
fee
for
a
distributor,
cigarette
vendor,
and
28
wholesaler
is
one
hundred
dollars
when
the
permit
is
granted
29
during
the
months
of
July,
August,
or
September.
However,
30
whenever
a
state
permit
holder
operates
more
than
one
place
of
31
business,
a
duplicate
state
permit
shall
be
issued
for
each
32
additional
place
of
business
on
payment
of
five
dollars
for
33
each
duplicate
state
permit,
but
refunds
as
provided
in
this
34
subchapter
do
not
apply
to
any
duplicate
permit
issued.
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Sec.
7.
Section
453A.13,
subsection
5,
unnumbered
paragraph
1
1,
Code
2025,
is
amended
to
read
as
follows:
2
Permits
shall
be
issued
only
upon
applications
accompanied
3
by
the
fee
indicated
above,
and
by
an
adequate
bond
as
provided
4
in
section
453A.14
,
and
upon
forms
furnished
by
the
department
5
upon
written
request
.
The
failure
to
furnish
such
forms
shall
6
be
no
excuse
for
the
failure
to
file
the
forms
unless
absolute
7
refusal
is
shown.
Applications,
any
supporting
documentation,
8
and
the
associated
fees
required
by
this
section
shall
be
9
submitted
to
the
department
electronically.
The
forms
shall
10
set
forth
all
of
the
following:
11
Sec.
8.
Section
453A.13,
subsection
9,
unnumbered
paragraph
12
1,
Code
2025,
is
amended
to
read
as
follows:
13
Each
permit
issued
shall
describe
clearly
the
place
of
14
business
for
which
it
is
issued,
shall
be
nonassignable,
15
consecutively
numbered,
designating
the
kind
of
permit,
and
16
shall
authorize
the
sale
of
cigarettes,
alternative
nicotine
17
products,
or
vapor
products
in
this
state
subject
to
the
18
limitations
and
restrictions
herein
contained.
The
retail
19
permits
shall
be
upon
forms
furnished
by
the
department
or
on
20
forms
made
available
or
approved
by
the
department
.
21
Sec.
9.
Section
453A.14,
subsection
1,
unnumbered
paragraph
22
1,
Code
2025,
is
amended
to
read
as
follows:
23
No
A
state
or
manufacturer’s
permit
shall
not
be
issued
until
24
the
applicant
files
a
bond,
with
good
and
sufficient
surety,
25
to
be
approved
by
the
director,
which
bond
shall
be
in
favor
of
26
the
state
and
conditioned
upon
the
payment
of
taxes,
damages,
27
fines,
penalties,
and
costs
adjudged
against
the
permit
holder
28
for
violation
of
any
of
the
provisions
of
this
subchapter
.
The
29
bonds
shall
be
on
forms
prescribed
by
the
director
and
shall
be
30
filed
electronically.
A
bond
filed
under
this
section
shall
be
31
in
one
of
the
following
amounts:
32
Sec.
10.
Section
453A.14,
subsection
2,
Code
2025,
is
33
amended
to
read
as
follows:
34
2.
A
person
shall
not
engage
in
interstate
business
unless
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the
person
files
a
bond,
with
good
and
sufficient
surety
in
an
1
amount
of
not
less
than
one
thousand
dollars.
A
bond
required
2
by
this
subsection
shall
be
on
forms
prescribed
by
the
director
3
and
shall
be
filed
electronically.
The
amount
of
the
bond
4
required
of
the
person
shall
be
fixed
by
the
director,
subject
5
to
the
minimum
limitation
provided
in
this
section
.
The
bond
6
is
subject
to
approval
by
the
director
and
shall
be
payable
to
7
the
state
in
Des
Moines,
Polk
county,
and
conditioned
upon
the
8
payment
of
taxes,
damages,
fines,
penalties,
and
costs
adjudged
9
against
the
person
for
violation
of
any
of
the
requirements
of
10
this
subchapter
affecting
the
person,
on
a
form
prescribed
by
11
the
director.
12
Sec.
11.
Section
453A.15,
subsection
7,
Code
2025,
is
13
amended
to
read
as
follows:
14
7.
The
director
may
require
by
rule
that
Any
reports
15
required
to
be
made
under
this
subchapter
shall
be
filed
by
16
electronic
transmission
electronically
.
17
Sec.
12.
Section
453A.16,
Code
2025,
is
amended
to
read
as
18
follows:
19
453A.16
Manufacturer’s
permit.
20
The
department
may,
upon
application
of
any
manufacturer,
21
issue
without
charge
to
the
manufacturer
a
manufacturer’s
22
permit.
The
application
shall
contain
information
as
23
the
director
shall
prescribe
and
the
application
shall
be
24
submitted
to
the
department
electronically
.
The
holder
of
a
25
manufacturer’s
permit
is
authorized
to
purchase
stamps
from
26
the
department,
and
must
affix
stamps
to
individual
packages
27
of
cigarettes
outside
of
this
state,
prior
to
their
shipment
28
into
the
state
unless
the
cigarettes
are
shipped
to
an
Iowa
29
permitted
distributor
or
an
Iowa
permitted
distributor’s
agent.
30
Sec.
13.
Section
453A.17,
subsection
1,
Code
2025,
is
31
amended
to
read
as
follows:
32
1.
Every
distributing
agent
in
the
state,
now
engaged,
33
or
who
desires
to
become
engaged,
in
the
business
of
storing
34
unstamped
cigarettes
which
are
received
in
interstate
commerce
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for
distribution
or
delivery
only
upon
order
received
from
1
without
the
state
or
to
be
sold
outside
the
state,
shall
2
file
with
the
department
electronically
,
an
application
for
3
a
distributing
agent’s
permit,
on
a
form
prescribed
by
the
4
director
,
to
be
furnished
upon
written
request
.
The
failure
5
to
furnish
shall
be
no
excuse
for
the
failure
to
file
the
same
6
unless
an
absolute
refusal
is
shown.
Said
form
shall
set
7
forth
the
name
under
which
such
distributing
agent
transacts
8
or
intends
to
transact
such
business
as
a
distributing
agent,
9
the
principal
office
and
place
of
business
in
Iowa
to
which
10
the
permit
is
to
apply,
and
if
other
than
an
individual,
the
11
principal
officers
or
members
thereof
and
their
addresses.
The
12
director
may
require
any
other
information
in
said
application.
13
No
distributing
agent
shall
engage
in
such
business
until
14
such
application
has
been
filed
and
fee
in
the
sum
of
one
15
hundred
dollars
paid
for
the
permit
and
until
the
permit
has
16
been
obtained.
Such
permit
shall
expire
on
June
30
following
17
the
date
of
issuance.
All
of
the
provisions
of
the
last
18
two
paragraphs
of
section
453A.14
,
relative
to
bonds,
are
19
incorporated
herein
and
by
this
reference
made
applicable
to
20
distributing
agents.
Upon
failure
to
furnish
adequate
bond
21
as
required,
the
permit
shall
be
revoked
without
hearing.
An
22
application
shall
be
filed
and
a
permit
obtained
for
each
place
23
of
business
owned
or
operated
by
a
distributing
agent.
24
Sec.
14.
Section
453A.18,
Code
2025,
is
amended
to
read
as
25
follows:
26
453A.18
Forms
for
records
and
reports.
27
The
department
shall
furnish
or
make
available
in
electronic
28
form,
without
charge,
to
holders
of
the
various
permits,
forms
29
in
sufficient
quantities
to
enable
permit
holders
to
make
the
30
reports
required
to
be
made
under
this
subchapter
.
The
permit
31
holders
shall
furnish
at
their
own
expense
the
books,
records,
32
and
invoices,
required
to
be
used
and
kept,
but
the
books,
33
records,
and
invoices
shall
be
in
exact
conformity
to
the
forms
34
prescribed
for
that
purpose
by
the
director,
and
shall
be
kept
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and
used
in
the
manner
prescribed
by
the
director.
However,
1
the
director
may,
by
express
order
in
certain
cases,
authorize
2
permit
holders
to
keep
their
records
in
a
manner
and
upon
forms
3
other
than
those
prescribed.
The
authorization
may
be
revoked
4
at
any
time.
A
report,
book,
record,
invoice,
and
any
other
5
document
required
to
be
submitted
to
the
department
under
this
6
subchapter
shall
be
submitted
electronically.
7
Sec.
15.
Section
453A.23,
subsections
1
and
2,
Code
2025,
8
are
amended
to
read
as
follows:
9
1.
Subject
to
this
subchapter
,
a
retailer’s
permit
may
be
10
issued
by
the
department
to
any
dining
car
company,
sleeping
11
car
company,
railroad
or
railway
company.
The
permit
shall
12
authorize
the
holder
to
keep
for
sale,
and
sell,
cigarettes
13
at
retail
on
any
dining
car,
sleeping
car,
or
passenger
car
14
operated
by
the
applicant
in,
through,
or
across
the
state
of
15
Iowa,
subject
to
all
of
the
restrictions
imposed
upon
retailers
16
under
this
subchapter
.
The
application
for
the
permit
shall
17
be
in
the
form
and
contain
the
information
required
by
the
18
director
and
each
application
submitted
under
this
section
19
shall
be
submitted
to
the
department
electronically
.
Each
20
permit
is
good
throughout
the
state.
Only
one
permit
is
21
required
for
all
cars
operated
in
this
state
by
the
applicant,
22
but
a
duplicate
of
the
permit
shall
be
posted
in
each
car
23
in
which
cigarettes
are
sold
and
no
further
permit
shall
be
24
required
or
tax
levied
for
the
privilege
of
selling
cigarettes
25
in
the
cars.
No
cigarettes
Cigarettes
shall
not
be
sold
in
26
the
cars
without
having
affixed
thereto
stamps
evidencing
the
27
payment
of
the
tax
as
provided
in
this
subchapter
.
28
2.
As
a
condition
precedent
to
the
issuing
of
a
retailer’s
29
permit
for
railway
car,
the
applicant
shall
file
with
the
30
department
a
bond
in
favor
of
the
state
for
the
benefit
of
31
all
parties
interested
in
the
amount
of
five
hundred
dollars
32
conditioned
upon
the
payment
of
all
taxes,
fines
and
penalties
33
and
costs
in
this
subchapter
.
A
bond
filed
under
this
34
subsection
shall
be
on
a
form
prescribed
by
the
director
and
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shall
be
filed
electronically.
1
Sec.
16.
Section
453A.24,
subsection
2,
Code
2025,
is
2
amended
to
read
as
follows:
3
2.
The
director
may
require
by
rule
that
common
carriers
4
or
the
appropriate
persons
provide
monthly
reports
to
the
5
department
detailing
all
information
the
department
deems
6
necessary
on
shipments
into
and
out
of
Iowa
of
cigarettes
7
and
tobacco
products
as
set
forth
in
this
subchapter
I
and
8
subchapter
II
of
this
chapter
.
The
director
may
require
by
9
rule
that
the
reports
A
report
required
to
be
submitted
by
the
10
director
pursuant
to
this
section
shall
be
filed
by
electronic
11
transmission
electronically
.
12
Sec.
17.
Section
453A.28,
subsection
1,
paragraph
a,
Code
13
2025,
is
amended
to
read
as
follows:
14
a.
(1)
If
after
any
audit,
examination
of
records,
or
15
other
investigation
the
department
finds
that
any
person
has
16
sold
cigarettes
without
stamps
affixed
or
that
any
person
17
responsible
for
paying
the
tax
has
not
done
so
as
required
by
18
this
subchapter
,
the
department
shall
fix
and
determine
the
19
amount
of
tax
due,
and
shall
assess
the
tax
against
the
person,
20
together
with
a
penalty
as
provided
in
section
421.27
.
21
(2)
The
taxpayer
shall
pay
interest
on
the
tax
or
additional
22
tax
at
the
rate
determined
under
section
421.7
counting
each
23
fraction
of
a
month
as
an
entire
month,
computed
from
the
date
24
the
tax
was
due.
If
any
person
fails
to
furnish
evidence
25
satisfactory
to
the
director
showing
purchases
of
sufficient
26
stamps
to
stamp
unstamped
cigarettes
purchased
by
the
person,
27
the
presumption
shall
be
that
the
cigarettes
were
sold
without
28
the
proper
stamps
affixed.
Within
three
years
after
the
report
29
is
filed
or
within
three
years
after
the
report
became
due,
30
whichever
is
later,
the
department
shall
examine
the
report
31
and
determine
the
correct
amount
of
tax.
The
period
for
32
examination
and
determination
of
the
correct
amount
of
tax
is
33
unlimited
in
the
case
of
a
false
or
fraudulent
report
made
34
with
the
intent
to
evade
tax,
or
in
the
case
of
a
failure
to
35
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file
a
report,
or
if
a
person
purchases
or
is
in
possession
of
1
unstamped
cigarettes.
2
(3)
For
purposes
of
imposing
penalties
under
this
section
3
and
section
421.27,
a
person
who
fails
to
timely
file
or
submit
4
a
required
return,
report,
or
other
documentation
upon
which
no
5
tax
is
shown
due
is
subject
to
a
penalty
in
the
amount
of
fifty
6
dollars
for
each
occurrence.
7
Sec.
18.
Section
453A.28,
subsection
1,
Code
2025,
is
8
amended
by
adding
the
following
new
paragraph:
9
NEW
PARAGRAPH
.
c.
For
purposes
of
this
section
and
section
10
421.27,
any
application,
bond,
fee,
report,
return,
remittance,
11
or
other
documentation
required
to
be
submitted
electronically
12
under
this
subchapter
that
is
filed
in
a
manner
other
than
in
13
an
electronic
format
specified
by
the
department
shall
not
be
14
considered
a
valid
submission
unless
the
director
has
permitted
15
submission
of
such
application,
bond,
fee,
report,
return,
16
remittance,
or
other
documentation
through
an
alternative
17
method
pursuant
to
section
453A.57.
18
Sec.
19.
Section
453A.35,
subsection
1,
paragraph
a,
Code
19
2025,
is
amended
to
read
as
follows:
20
a.
With
the
exception
of
revenues
credited
to
the
health
21
care
trust
fund
pursuant
to
paragraph
“b”
,
the
proceeds
derived
22
from
the
sale
of
stamps
and
the
payment
of
fees
and
penalties
23
provided
for
under
this
chapter
,
and
the
permit
fees
received
24
from
all
state
permits
issued
by
the
department,
shall
be
25
credited
to
the
general
fund
of
the
state.
26
Sec.
20.
Section
453A.35,
subsection
2,
Code
2025,
is
27
amended
to
read
as
follows:
28
2.
All
permit
fees
provided
for
in
this
chapter
and
29
collected
by
the
department
on
behalf
of
cities
in
the
issuance
30
of
permits
granted
by
the
cities
shall
be
paid
remitted
by
31
the
department
to
the
treasurer
of
the
city
where
the
permit
32
is
effective,
or
to
another
city
officer
as
designated
by
the
33
council,
and
shall
be
credited
to
the
general
fund
of
the
34
city.
Permit
fees
so
collected
by
the
department
on
behalf
of
35
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counties
shall
be
paid
remitted
to
the
county
treasurer
of
the
1
county
where
the
permit
is
effective
.
2
Sec.
21.
Section
453A.39,
subsection
2,
paragraph
a,
Code
3
2025,
is
amended
to
read
as
follows:
4
a.
All
cigarette
samples
shall
be
shipped
only
to
a
5
distributor
that
has
a
permit
to
stamp
cigarettes
or
little
6
cigars
with
Iowa
tax.
All
cigarette
samples
must
have
a
7
cigarette
stamp.
The
manufacturer
shipping
samples
under
this
8
section
shall
send
an
affidavit
to
the
director
stating
the
9
shipment
information,
including
the
date
shipped,
quantity,
and
10
to
whom
the
samples
were
shipped.
The
distributor
receiving
11
the
shipment
shall
send
an
affidavit
to
the
director
stating
12
the
shipment
information,
including
the
date
shipped,
quantity,
13
and
from
whom
the
samples
were
shipped.
These
affidavits
shall
14
be
duly
notarized
and
submitted
to
the
director
at
the
time
of
15
shipment
and
receipt
of
the
samples.
The
distributor
shall
16
pay
the
tax
on
samples
by
separate
remittance
along
with
the
17
affidavit.
The
affidavit
and
remittance
required
under
this
18
paragraph
shall
be
submitted
to
the
department
electronically.
19
Sec.
22.
Section
453A.40,
subsection
2,
Code
2025,
is
20
amended
to
read
as
follows:
21
2.
Persons
subject
to
the
inventory
tax
imposed
under
this
22
section
shall
take
an
inventory
as
of
the
close
of
the
business
23
day
next
preceding
the
effective
date
of
the
increased
tax
rate
24
of
those
items
subject
to
the
inventory
tax
for
the
purpose
of
25
determining
the
tax
due.
These
persons
shall
report
the
tax
26
on
forms
provided
by
the
department
of
revenue
and
remit
the
27
tax
due
within
thirty
days
of
the
prescribed
inventory
date.
28
The
report
and
remittance
required
under
this
subsection
shall
29
be
submitted
to
the
department
electronically.
The
department
30
of
revenue
shall
adopt
rules
as
are
necessary
to
carry
out
this
31
section
.
32
Sec.
23.
Section
453A.45,
subsection
5,
paragraphs
b,
c,
and
33
d,
Code
2025,
are
amended
to
read
as
follows:
34
b.
The
report
shall
be
made
on
forms
provided
by
the
35
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director.
The
director
may
require
by
rule
that
the
A
report
1
required
under
this
subsection
shall
be
filed
by
electronic
2
transmission
electronically
.
A
report
required
to
be
submitted
3
electronically
under
this
subsection
that
is
filed
in
a
manner
4
other
than
in
an
electronic
format
specified
by
the
department
5
shall
not
be
considered
a
valid
submission
unless
the
director
6
has
permitted
the
submission
of
such
a
report
through
an
7
alternative
method
pursuant
to
section
453A.57.
8
c.
Common
carriers
transporting
tobacco
products
into
9
this
state
shall
file
with
the
director
reports
of
all
such
10
shipments
other
than
those
which
are
delivered
to
public
11
warehouses
of
first
destination
in
this
state
which
are
12
licensed
under
the
provisions
of
chapter
554
.
Such
reports
13
shall
be
filed
electronically
with
the
department
on
or
before
14
the
tenth
day
of
each
month
and
shall
show
with
respect
to
15
deliveries
made
in
the
preceding
month
all
of
the
following:
16
(1)
The
date.
17
(2)
The
point
of
origin.
18
(3)
The
point
of
delivery.
19
(4)
The
name
of
the
consignee.
20
(5)
A
description
and
the
quantity
of
tobacco
products
21
delivered.
22
(6)
Such
other
information
as
the
director
may
require.
23
d.
Any
person
who
fails
or
refuses
to
transmit
to
the
24
director
the
required
reports
or
whoever
refuses
to
permit
the
25
examination
of
the
records
by
the
director
shall
be
guilty
26
of
a
serious
misdemeanor.
In
addition,
any
person
who
fails
27
to
timely
submit
a
report
required
under
this
section
is
28
subject
to
a
penalty
in
the
amount
of
fifty
dollars
for
each
29
occurrence.
30
Sec.
24.
Section
453A.46,
subsection
1,
paragraph
a,
31
subparagraph
(1),
Code
2025,
is
amended
to
read
as
follows:
32
(1)
On
or
before
the
twentieth
day
of
each
calendar
month
33
every
distributor
with
a
place
of
business
in
this
state
shall
34
file
a
return
with
the
director
showing
for
the
preceding
35
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calendar
month
the
quantity
and
wholesale
sales
price
of
each
1
tobacco
product
brought,
or
caused
to
be
brought,
into
this
2
state
for
sale;
made,
manufactured,
or
fabricated
in
this
state
3
for
sale
in
this
state;
and
any
other
information
the
director
4
may
require.
Every
licensed
distributor
outside
this
state
5
shall
in
like
manner
file
a
return
with
the
director
showing
6
for
the
preceding
calendar
month
the
quantity
and
wholesale
7
sales
price
of
each
tobacco
product
shipped
or
transported
to
8
retailers
in
this
state
to
be
sold
by
those
retailers
and
any
9
other
information
the
director
may
require.
Returns
shall
10
be
made
upon
forms
furnished
or
made
available
in
electronic
11
form
and
prescribed
by
the
director
and
shall
contain
other
12
information
as
the
director
may
require.
Each
return
shall
be
13
accompanied
by
a
remittance
for
the
full
tax
liability
shown
14
on
the
return,
less
a
discount
as
fixed
by
the
director
not
to
15
exceed
five
percent
of
the
tax.
Within
three
years
after
the
16
return
is
filed
or
within
three
years
after
the
return
became
17
due,
whichever
is
later,
the
department
shall
examine
it,
18
determine
the
correct
amount
of
tax,
and
assess
the
tax
against
19
the
taxpayer
for
any
deficiency.
The
period
for
examination
20
and
determination
of
the
correct
amount
of
tax
is
unlimited
in
21
the
case
of
a
false
or
fraudulent
return
made
with
the
intent
22
to
evade
tax,
or
in
the
case
of
a
failure
to
file
a
return.
23
Sec.
25.
Section
453A.46,
subsection
3,
Code
2025,
is
24
amended
to
read
as
follows:
25
3.
In
addition
to
the
tax
or
additional
tax,
the
taxpayer
26
shall
also
pay
a
penalty
as
provided
in
section
421.27
and
be
27
subject
to
the
civil
penalties
set
forth
in
sections
421.27
;
28
453A.31,
subsection
1
,
paragraph
“b”
;
and
453A.50,
subsection
29
3
,
as
applicable.
For
purposes
of
imposing
penalties
under
30
this
section
and
section
421.27,
a
person
who
fails
to
31
timely
file
or
submit
a
required
return,
report,
or
other
32
documentation
upon
which
no
tax
is
shown
due
is
subject
to
a
33
penalty
in
the
amount
of
fifty
dollars
for
each
occurrence.
34
Sec.
26.
Section
453A.46,
subsection
7,
Code
2025,
is
35
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amended
by
striking
the
subsection
and
inserting
in
lieu
1
thereof
the
following:
2
7.
A
report,
return,
remittance,
or
other
documentation
3
required
to
be
submitted
under
this
subchapter
shall
be
filed
4
electronically.
Any
report,
return,
remittance,
or
other
5
documentation
required
to
be
submitted
electronically
that
6
is
submitted
in
a
manner
other
than
in
an
electronic
format
7
specified
by
the
department
shall
not
be
considered
a
valid
8
submission
unless
the
director
has
permitted
submission
of
such
9
application,
bond,
fee,
report,
return,
remittance,
or
other
10
documentation
through
an
alternative
method
pursuant
to
section
11
453A.57.
12
Sec.
27.
Section
453A.47A,
subsection
6,
Code
2025,
is
13
amended
to
read
as
follows:
14
6.
Issuance.
Cities
may
issue
approve
retail
permits
to
15
retailers
permit
applications
of
applicants
located
within
16
their
respective
limits.
County
boards
of
supervisors
may
17
issue
approve
retail
permits
to
retailers
permit
applications
18
of
applicants
located
in
their
respective
counties,
outside
19
of
the
corporate
limits
of
cities.
The
city
or
county
shall
20
submit
a
duplicate
of
any
application
for
a
retail
permit
to
21
the
department
within
thirty
days
of
issuance
of
a
permit.
22
Upon
approval
of
a
retail
permit
application
by
a
city
or
23
county,
the
department
shall
issue
the
permit
to
the
applicant
24
on
behalf
of
the
city
or
county,
in
the
manner
determined
by
25
the
department.
A
city
or
county
shall
use
the
electronic
26
portal
of
the
department
to
process
retail
permit
applications.
27
A
city
or
county
that
is
unable
to
use
the
electronic
portal
28
of
the
department
may
request
permission
from
the
director
to
29
process
retail
applications
by
another
method.
The
department
30
shall
submit
the
current
list
of
all
retail
permits
issued
to
31
the
department
of
health
and
human
services
by
the
last
day
of
32
each
quarter
of
a
state
fiscal
year.
33
Sec.
28.
Section
453A.47A,
subsection
7,
paragraph
a,
34
unnumbered
paragraph
1,
Code
2025,
is
amended
to
read
as
35
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follows:
1
All
permits
provided
for
in
this
subchapter
shall
expire
on
2
June
30
of
each
year.
A
permit
shall
not
be
granted
or
issued
3
until
the
applicant
has
paid
the
fees
provided
for
to
the
4
department
required
in
this
section
for
the
next
period
ending
5
on
June
30
next,
to
the
city
or
county
granting
the
permit
.
The
6
fee
for
retail
permits
is
as
follows
when
the
permit
is
granted
7
during
the
month
of
July,
August,
or
September:
8
Sec.
29.
Section
453A.47A,
subsection
9,
unnumbered
9
paragraph
1,
Code
2025,
is
amended
to
read
as
follows:
10
Retail
permits
shall
be
issued
only
upon
applications,
11
accompanied
by
the
fee
indicated
above,
made
upon
forms
12
furnished
by
the
department
upon
written
request
.
The
failure
13
to
furnish
such
forms
shall
be
no
excuse
for
the
failure
to
14
file
the
form
unless
absolute
refusal
is
shown.
Applications,
15
any
supporting
documentation,
and
the
associated
fees
16
required
by
this
section
shall
be
submitted
to
the
department
17
electronically.
The
forms
shall
specify:
18
Sec.
30.
Section
453A.47A,
subsection
10,
paragraph
b,
Code
19
2025,
is
amended
to
read
as
follows:
20
b.
Every
retailer
shall,
when
requested
by
the
department,
21
make
additional
reports
as
the
department
deems
necessary
and
22
proper
and
shall
at
the
request
of
the
department
furnish
full
23
and
complete
information
pertaining
to
any
transaction
of
the
24
retailer
involving
the
purchase
or
sale
or
use
of
tobacco,
25
tobacco
products,
alternative
nicotine
products,
or
vapor
26
products.
A
report
required
to
be
submitted
to
the
department
27
pursuant
to
this
subsection
shall
be
submitted
electronically.
28
Sec.
31.
Section
453A.52,
Code
2025,
is
amended
by
adding
29
the
following
new
subsection:
30
NEW
SUBSECTION
.
9.
Any
certification
form,
notice,
and
31
supporting
documentation
and
any
payment
required
to
be
32
submitted
to
the
department
pursuant
to
this
section
shall
33
be
submitted
to
the
department
electronically,
unless
the
34
director
has
permitted
submission
of
such
information
through
35
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an
alternative
method
pursuant
to
section
453A.57.
1
Sec.
32.
Section
453A.52B,
Code
2025,
is
amended
by
adding
2
the
following
new
subsection:
3
NEW
SUBSECTION
.
6.
Payment
for
any
penalty
imposed
4
pursuant
to
this
section
shall
be
remitted
to
the
department
5
electronically,
unless
the
director
has
permitted
submission
6
of
such
information
through
an
alternative
method
pursuant
to
7
section
453A.57.
8
Sec.
33.
Section
453A.52D,
Code
2025,
is
amended
by
adding
9
the
following
new
subsection:
10
NEW
SUBSECTION
.
4.
Notice
to
the
department
and
any
11
supporting
documentation
required
to
be
submitted
to
the
12
department
pursuant
to
this
section
shall
be
submitted
to
the
13
department
electronically,
unless
the
director
has
permitted
14
submission
of
such
information
through
an
alternative
method
15
pursuant
to
section
453A.57.
16
Sec.
34.
NEW
SECTION
.
453A.57
Submitting
documents
——
17
alternative
method.
18
A
person
subject
to
this
chapter
who
is
required
to
submit
an
19
application,
bond,
fee,
report,
return,
remittance,
or
other
20
documentation
electronically
and
who
is
unable
to
do
so,
may
21
request
permission
from
the
director
to
make
a
submission
using
22
an
alternative
method.
23
Sec.
35.
Section
453D.5,
subsection
1,
Code
2025,
is
amended
24
to
read
as
follows:
25
1.
No
later
than
twenty
calendar
days
after
the
end
of
26
each
calendar
quarter,
and
more
frequently
if
so
directed
by
27
the
director,
each
stamping
agent
and
distributor
shall
submit
28
information
as
the
director
requires
to
facilitate
compliance
29
with
this
chapter
,
including
but
not
limited
to
a
list
by
brand
30
family
of
the
total
number
of
cigarettes,
or,
in
the
case
of
31
roll-your-own
tobacco,
the
equivalent
stick
count,
for
which
32
the
stamping
agent
or
distributor
affixed
stamps
during
the
33
previous
calendar
quarter
or
otherwise
paid
the
tax
due
for
34
the
cigarettes.
The
stamping
agent
and
distributor
shall
35
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maintain,
and
make
available
to
the
director,
all
invoices
and
1
documentation
of
sales
of
all
nonparticipating
manufacturer
2
cigarettes
and
any
other
information
relied
upon
in
reporting
3
to
the
director
for
a
period
of
five
years.
Any
information
4
submitted
pursuant
to
this
subsection
shall
be
submitted
to
5
the
director
electronically,
unless
the
director
has
permitted
6
submission
of
such
information
through
an
alternative
method
7
pursuant
to
section
453A.57.
Any
information
submitted
8
pursuant
to
this
subsection
that
is
submitted
in
a
manner
other
9
than
in
a
format
specified
by
the
department
shall
not
be
10
considered
a
valid
submission.
Violations
of
this
subsection
11
are
subject
to
civil
penalties
as
established
in
section
12
453A.31,
subsection
1
,
paragraph
“b”
.
13
Sec.
36.
CODE
EDITOR
DIRECTIVES.
14
1.
The
Code
editor
is
directed
to
place
new
section
453A.57,
15
as
enacted
by
this
division
of
this
Act,
in
subchapter
IV
16
titled
“Uniformed
Application
of
Chapter”.
17
2.
The
Code
editor
may
modify
subchapter
titles
if
necessary
18
and
is
directed
to
correct
internal
references
in
the
Code
as
19
necessary
due
to
enactment
of
this
section.
20
DIVISION
II
21
RESEARCH
ACTIVITIES
TAX
CREDIT
22
Sec.
37.
Section
422.10,
subsection
1,
paragraph
a,
23
subparagraph
(1),
subparagraph
division
(b),
subparagraph
24
subdivision
(i),
Code
2025,
is
amended
to
read
as
follows:
25
(i)
(A)
A
person
engaged
in
agricultural
production
as
26
defined
in
section
423.1
except
if
the
credit
is
based
on
27
conducting
agriscience
research
as
defined
in
subparagraph
part
28
(B)
and
the
person
or
the
business
is
engaged
in
bovine
and
29
porcine
veterinary
research,
the
person
shall
not
be
considered
30
to
be
engaged
in
agricultural
production
as
defined
in
section
31
423.1
.
32
(B)
As
used
in
this
subparagraph
subdivision,
“agriscience
33
research”
means
research
that
is
approved
and
overseen
or
34
monitored
by
a
board
that
includes,
at
a
minimum,
an
individual
35
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who
was
employed
with,
contracted
by,
or
professionally
trained
1
by
an
accredited
university
as
a
researcher
in
an
applied
2
animal
science
and
an
individual
holding
a
doctor
of
veterinary
3
medicine
or
a
doctoral
degree
in
an
applied
animal
science;
4
is
conducted
in
this
state
in
an
applied
animal
science;
5
improves
the
scientific
knowledge
base
or
increases
scientific
6
innovation,
performance,
or
viability
within
this
state;
the
7
results
of
the
research
are
evaluated
by
a
person
educated
and
8
trained
in
statistics
by
an
accredited
university
and
capable
9
of
applying
generally
accepted
methodologies
to
the
results
10
in
accordance
with
industry
standards
in
an
applied
animal
11
science;
and
the
results
of
the
research
are
made
available
12
to
the
public
by
submission
to
or
publication
in
a
journal,
13
magazine,
or
similar
periodical,
if
the
statistical
evaluation
14
indicated
the
research
is
reliable
and
relevant
to
an
applied
15
animal
science.
16
(C)
As
used
in
this
subparagraph
subdivision,
“applied
17
animal
science”
includes
the
areas
of
animal
science,
18
veterinary
medicine,
nutritional
science,
genetic
science,
and
19
microbiology.
20
Sec.
38.
Section
422.33,
subsection
5,
paragraph
e,
21
subparagraph
(1),
subparagraph
division
(b),
subparagraph
22
subdivision
(i),
Code
2025,
is
amended
to
read
as
follows:
23
(i)
(A)
A
person
engaged
in
agricultural
production
as
24
defined
in
section
423.1
,
except
if
the
credit
is
based
on
25
conducting
agriscience
research
and
the
person
or
the
business
26
is
engaged
in
bovine
and
porcine
veterinary
research,
the
27
person
shall
not
be
considered
to
be
engaged
in
agricultural
28
production
as
defined
in
section
423.1
.
29
(B)
As
used
in
this
subparagraph
subdivision,
“agriscience
30
research”
means
research
that
is
approved
and
overseen
or
31
monitored
by
a
board
that
includes,
at
a
minimum,
an
individual
32
who
was
employed
with,
contracted
by,
or
professionally
trained
33
by
an
accredited
university
as
a
researcher
in
an
applied
34
animal
science
and
an
individual
holding
a
doctor
of
veterinary
35
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medicine
or
a
doctoral
degree
in
an
applied
animal
science;
1
is
conducted
in
this
state
in
an
applied
animal
science;
2
improves
the
scientific
knowledge
base
or
increases
scientific
3
innovation,
performance,
or
viability
within
this
state;
the
4
results
of
the
research
are
evaluated
by
a
person
educated
and
5
trained
in
statistics
by
an
accredited
university
and
capable
6
of
applying
generally
accepted
methodologies
to
the
results
7
in
accordance
with
industry
standards
in
an
applied
animal
8
science;
and
the
results
of
the
research
are
made
available
9
to
the
public
by
submission
to
or
publication
in
a
journal,
10
magazine,
or
similar
periodical,
if
the
statistical
evaluation
11
indicated
the
research
is
reliable
and
relevant
to
an
applied
12
animal
science.
13
(C)
As
used
in
this
subparagraph
subdivision,
“applied
14
animal
science”
includes
the
areas
of
animal
science,
15
veterinary
medicine,
nutritional
science,
genetic
science,
and
16
microbiology.
17
Sec.
39.
RETROACTIVE
APPLICABILITY.
This
division
of
this
18
Act
applies
retroactively
to
January
1,
2017,
for
tax
years
19
beginning
on
or
after
that
date.
20
DIVISION
III
21
CITY
BUDGET
CERTIFICATION
DEADLINE
22
Sec.
40.
CITY
BUDGET
CERTIFICATION
DEADLINE
——
FY
23
2025-2026.
24
1.
As
used
in
this
section,
“qualified
city”
means
a
city
25
in
this
state
having
a
population
between
twenty
thousand
four
26
hundred
and
twenty
thousand
five
hundred,
according
to
the
2020
27
federal
decennial
census.
28
2.
a.
Notwithstanding
any
provision
of
section
384.16
to
29
the
contrary,
a
qualified
city
that
failed
to
certify
a
budget
30
as
required
in
section
384.16
for
the
fiscal
year
beginning
31
July
1,
2025,
may
comply
with
the
requirements
in
section
32
384.16
by
certifying
the
budget
on
or
before
July
1,
2025.
33
b.
A
qualified
city
that
complies
with
the
requirements
of
34
paragraph
“a”
is
not
required
to
conduct
a
hearing
as
required
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in
section
384.16
or
384.18.
In
addition,
the
provisions
of
1
section
384.19
allowing
persons
affected
by
the
budget
to
file
2
a
written
protest
with
the
county
auditor
do
not
apply
to
the
3
qualified
city’s
budget
for
the
fiscal
year
beginning
July
1,
4
2025.
5
c.
A
qualified
city
that
meets
the
extended
certification
6
deadline
as
provided
in
this
subsection
shall
be
deemed
to
have
7
complied
with
the
requirements
of
section
384.16
on
April
30,
8
2025.
9
Sec.
41.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
10
deemed
of
immediate
importance,
takes
effect
upon
enactment.
11
EXPLANATION
12
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
13
the
explanation’s
substance
by
the
members
of
the
general
assembly.
14
This
bill
relates
to
state
and
local
taxation
and
15
regulations.
16
DIVISION
I
——
CIGARETTE
AND
TOBACCO-RELATED
REGULATIONS.
17
The
bill
specifies
that
cities
and
counties
may
approve
18
tobacco-related
retail
permits
but
the
department
shall
issue
19
the
permit
to
the
applicant
on
behalf
of
the
city
or
county.
20
The
bill
requires
the
city
or
county
to
use
the
electronic
21
portal
of
the
department
to
process
retail
permit
applications.
22
If
a
city
or
county
is
unable
to
use
the
electronic
portal
23
of
the
department,
the
city
or
county
may
request
permission
24
from
the
director
of
revenue
to
process
retail
applications
by
25
another
method.
26
The
bill
provides
that
all
tobacco-related
permit
fees
shall
27
be
collected
by
the
department,
and
the
department
shall
credit
28
the
fees
to
the
city
or
county
where
the
permit
is
in
effect.
29
The
bill
specifies
that
a
person
who
fails
to
timely
file
or
30
submit
a
required
return,
report,
or
other
documentation
upon
31
which
no
tax
is
shown
due
is
subject
to
a
penalty
in
the
amount
32
of
$50
for
each
occurrence.
33
The
bill
requires
cigarette
and
tobacco
tax
returns,
34
reports,
invoices,
bonds,
and
payments
to
be
filed
with
or
35
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submitted
to
the
department
electronically
beginning
on
or
1
after
July
1,
2025.
2
The
bill
provides
any
report,
return,
remittance,
or
other
3
documentation
required
to
be
submitted
electronically
that
is
4
submitted
in
a
manner
other
than
in
an
electronic
format
shall
5
be
considered
not
a
valid
submission.
However,
the
bill
does
6
allow
a
person
required
to
make
a
submission
electronically
to
7
request
permission
from
the
director
of
revenue
to
make
the
8
submission
in
another
manner.
9
The
bill
directs
the
Code
editor
to
place
new
Code
section
10
453A.57
(submitting
documents
——
alternative
method)
in
11
subchapter
IV.
12
DIVISION
II
——
RESEARCH
ACTIVITIES
TAX
CREDIT.
The
bill
13
modifies
the
research
activities
tax
credit
available
against
14
the
individual
and
corporate
income
taxes.
Currently,
a
person
15
does
not
qualify
for
the
tax
credit
if
the
person
is
engaged
16
in
agricultural
production
as
defined
in
Code
section
423.1.
17
The
bill
provides
that
a
person
engaged
in
agriscience
research
18
does
qualify
for
the
credit.
The
bill
defines
“agriscience
19
research”.
The
division
applies
retroactively
to
tax
years
20
beginning
on
or
after
January
1,
2017,
for
tax
years
beginning
21
on
or
after
that
date.
22
DIVISION
III
——
CITY
BUDGET
CERTIFICATION
DEADLINE.
The
23
bill
defines
“qualified
city”
to
mean
a
city
in
this
state
24
having
a
population
between
20,400
and
20,500
persons,
25
according
to
the
2020
federal
decennial
census.
26
The
bill
allows
a
qualified
city
that
failed
to
certify
27
a
budget
as
required
by
law
to
nevertheless
comply
with
the
28
budget
deadline
requirements
by
certifying
the
budget
on
or
29
before
July
1,
2025.
30
The
division
takes
effect
upon
enactment.
31
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