Bill > HF329

This bill addresses the handling of tax-exempt water services by water utilities in Iowa. It introduces new provisions that require 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 water user's taxes under specific tax chapters. The bill mandates that when a customer presents a valid exemption certificate, the water utility must honor the exemption directly, rather than forcing the customer to seek a tax refund from the state's department of revenue. If a water utility fails to accept a valid exemption certificate, it will be required to pay a civil penalty to the department of revenue equal to the amount of tax that would have been refunded to the customer, plus interest. The department of revenue is tasked with creating rules to implement these new requirements, and any penalties collected will be deposited into the state's general fund. The overall goal appears to be streamlining the process for tax-exempt water service and ensuring utilities cooperate with existing tax exemption regulations.

Budget and Finance

https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=HF329