1. Welcome and Call to Order
2. Review of Items Addressed at Previous Meeting
3. Identification of Additional Issues for the Committee to Consider
4. Discussion of “Technical” Issues (see Attachment 1)
5. Discussion of “Procedural” Issues (see Attachment 2)
6. Next Meeting – Date and Agenda
Issue What Improvement Needed? How To Accomplish? By When?
Definition of “manufacturer”
Definition of “processing” (including treatment of M&E used to maintain and repair M&E)
Definition of “direct use” in processing (including adoption of integrated plant theory)
Rebuild of MM&E versus taxable repair service
Exemption for software used to operate and control MM&E
Exemption for electrical equipment (e.g., transformers) necessary to operate MM&E
Distinguishing between MM&E and real property (e.g., treatment of foundations for MM&E, electrical wiring within walls, etc.)
Definition of “recycling” (including need to produce a product for sale at retail)
Distinguishing between “replacement parts” and “supplies”
Definition of “processing” for purposes of the exemption for chemicals
Exemption for pallets, containers, etc.
Exemption for fuel, electricity, and water/steam
Exemption for other “consumables”
1. Comparison of Iowa’s exemptions versus those in other states (especially Illinois, Minnesota, Nebraska, etc.)
2. Ease of administration, including development of improved tests in the Department’s regulations and/or auditing procedures (e.g., ties to the Internal Revenue Code)
3. Development of standardized information requests to improve the ability of the Department and others to gain an understanding of a manufacturer’s business, operations, manufacturing processes, etc.
4. Improvements to the rule-making process
5. Improvements to the auditing and audit resolution process, including the ability to get technical advice and other “formal” guidance prior to filing a Protest
6. Negotiated rate agreements, managed audits, etc.
7. Impact of SSTP
a. Treatment of rental as a “sale,” including impact on expanded exemption for manufacturers of food for human consumption
b. Treatment of computers and computerized equipment
8. Improvements to the Iowa Code, including consolidation of exemptions into one area