Iowa District One: District 1 News

The 2009 Iowa State Little League Softball Tournament was held in Boone on July 18-23, 2009. The team from the host league, Boone National Little League, won some close games against some awsome teams from around Iowa to be crowned the 2009 Iowa Little League Girl's Softball Champions. Congratulations girls! You made everyone in District One and your home town of Boone VERY PROUD of you!

The deadline for submission of ASAP plans is April 1. Districts with 80 percent or more of leagues submitting a qualified safety plan will earn a $350 insurance credit. Leagues in districts achieving 60-79 percent participation will earn a $150 credit.

In 2009 there were only three leagues with approved plans. Three out of seven is not 60-79% so there were no leagues that earned the $150 credit. Let's see if we can improve on that this year and everyone get the credit. Appoint a League Safety Officer and have them start working on next years plan right away! Our District Safety Officer, Jeff Huston, is available to assist any league in the district - all you have to do is ask.

Thanks to Mark Kutchen, Past-President & Treasurer of Ames Little League, I recently became aware of a State of Iowa Tax Code Change (Senate File 478) which makes sales by a non-profit youth sports organization exempt from sales tax.  This was passed into law on May 26, 2009 and is retroactive to July 1, 1998.  Because the law is retroactive, refunds will be issued to those claiming them.

Prior to this law being passed, leagues should have been collecting and paying sales tax on their concession stand sales.  They no longer have to do so as long as they cancel their sales tax collection permit and can get a refund up to $50,000 for sales tax previously paid.

Leagues simply need to fill out Iowa Form IA843 Claim for Refund which is available on the Iowa Department of Revenue's website www.idr.iowa.gov to claim their refund. 

Refunds have to be claimed by October 1, 2009.

For Ames Little League which has only been running a concession stand since 2006, this will result in a refund of over $10,000.

COPY OF THE NEW LAW:

JSF 478-T - SALES TAX EXEMPTION FOR NONPROFIT YOUTH ATLETIC GROUPS

Prior Law
A sales tax exemption exists for sales made by a nonprofit 501(c)(3) entity, a government entity, or a nonprofit private educational institution where the profits of such sales are used exclusively for educational, charitable, or religious purposes. This exemption is disallowed if the profits are not used by or donated to an appropriate entity and expended for educational, religious, or charitable purposes.  

New Provisions
Senate File 478 allows organizations created for the sole or primary purpose of providing athletic activities to youth to be considered created for an educational purpose, and, if otherwise meeting the requirements of paragraph 423.3(78)“a,” sales of property and taxable services on their behalf will be exempt from Iowa tax. This change is made retroactive to July 1, 1998. Refunds of taxes interest or penalties resulting from the retroactivity of this claim are limited to an aggregate of $50,000. Claims for refund must be made by October 1, 2009. If the total amount of refunds claimed by October 1, 2009, exceeds $50,000, then refund amounts will be prorated amongst all the claimants.

Sections Amended
Section 218 of Senate File 478 amends section 423.3, subsection 78, Code 2009. Sections 219 and 220, refunds and effective and retroactive applicability, will not be codified. 

Effective Date
Effective May 26, 2009, and applies retroactively to July 1, 1998.

This could be a HUGE refund for some of you and bears looking into.  

HAPPY REFUND!