Bill > SF200

This bill addresses how water utilities handle tax exemptions for water services in Iowa. Specifically, it requires water utilities (defined as public utilities providing water services) to accept and keep valid exemption certificates, which are documents that exempt all or part of a person's water use from state sales or water service taxes. The bill mandates that water utilities cannot unnecessarily force customers with valid exemption certificates to seek tax refunds from the revenue department instead of receiving the exemption directly. If a water utility fails to accept a valid exemption certificate, they will be required to pay a civil penalty to the department of revenue equal to the amount of tax that would have been refunded, plus interest. The bill also requires the department of revenue to create rules for implementing these provisions and directs that any collected penalties and interest be deposited into the state's general fund. This legislation aims to streamline the process of tax exemptions for water services and ensure that customers with valid exemption certificates are not burdened with additional administrative steps.

Budget and Finance

https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=SF200