15.331A - SALES AND USE TAX REFUND.
15.331A SALES AND USE TAX REFUND.
1. The eligible business shall be entitled to a refund of the
sales and use taxes paid under chapter 423 for gas, electricity,
water, or sewer utility services, goods, wares, or merchandise, or on
services rendered, furnished, or performed to or for a contractor or
subcontractor and used in the fulfillment of a written contract
relating to the construction or equipping of a facility of the
eligible business. Taxes attributable to intangible property and
furniture and furnishings shall not be refunded. However, an
eligible business shall be entitled to a refund for taxes
attributable to racks, shelving, and conveyor equipment to be used in
a warehouse or distribution center subject to section 15.331C.
2. To receive the refund, a claim shall be filed by the eligible
business with the department of revenue as follows:
a. The contractor or subcontractor shall state under oath, on
forms provided by the department, the amount of the sales of goods,
wares, or merchandise or services rendered, furnished, or performed
including water, sewer, gas, and electric utility services upon which
sales or use tax has been paid prior to the project completion, and
shall file the forms with the eligible business before final
settlement is made.
b. The eligible business shall, not more than one year after
project completion, make application to the department for any refund
of the amount of the sales and use taxes paid pursuant to chapter 423
upon any goods, wares, or merchandise, or services rendered,
furnished, or performed, including water, sewer, gas, and electric
utility services. The application shall be made in the manner and
upon forms to be provided by the department, and the department shall
audit the claim and, if approved, issue a warrant to the eligible
business in the amount of the sales or use tax which has been paid to
the state of Iowa under a contract. A claim filed by the eligible
business in accordance with this section shall not be denied by
reason of a limitation provision set forth in chapter 421 or 423.
c. The eligible business shall inform the department of
revenue in writing within two weeks of project completion. For
purposes of this section, "project completion" means the first
date upon which the average annualized production of finished product
for the preceding ninety-day period at the manufacturing facility
operated by the eligible business is at least fifty percent of the
initial design capacity of the facility.
3. A contractor or subcontractor who willfully makes a false
report of tax paid under the provisions of this section is guilty of
a simple misdemeanor and in addition is liable for the payment of the
tax and any applicable penalty and interest. Section History: Recent Form
96 Acts, ch 1199, §2; 2001 Acts, ch 116, §1; 2003 Acts, ch 145,
§286; 2003 Acts, 1st Ex, ch 2, §152, 205; 2004 Acts, ch 1003, §2, 12;
2005 Acts, ch 150, §46, 68, 69; 2008 Acts, ch 1031, § 79; 2008 Acts,
ch 1032, § 123; 2009 Acts, ch 123, §14
Referred to in § 15.119, 15.331C, 15.335A, 15E.193B, 15E.196
For aggregate limitations on amount of tax credits, see §15.119