Senate File 196 - Introduced SENATE FILE BY HOGG Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act providing for a use tax refund for certain fuel=efficient 2 motor vehicles, and making an appropriation. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1948SS 82 5 rn/cf/24 PAG LIN 1 1 Section 1. NEW SECTION. 423.6A FUEL=EFFICIENT MOTOR 1 2 VEHICLES == REFUND. 1 3 1. A person who purchases a new motor vehicle on or after 1 4 July 1, 2007, may apply to the department for a refund of a 1 5 portion of the amount of use tax imposed and paid at the time 1 6 of purchase of the new motor vehicle by the applicant in the 1 7 amount issued on a tax refund certificate issued pursuant to 1 8 section 473.46. 1 9 2. The refund may be obtained only in the following manner 1 10 and under the following conditions: 1 11 a. On a form furnished by the department and filed by 1 12 April 30 after the end of the calendar year in which the tax 1 13 refund is to be applied, the applicant shall report to the 1 14 department the total amount of use tax paid for the new motor 1 15 vehicle on which the use tax refund certificate was issued 1 16 pursuant to section 473.46. 1 17 b. If required by the department, the applicant shall 1 18 prove that the person making the sale has included the amount 1 19 of the sale in the computation of the sales price and that 1 20 such person has paid the use tax levied under section 423.5 1 21 based upon such computation of the sales price. 1 22 c. The applicant shall provide the use tax refund 1 23 certificate issued pursuant to section 473.46 to the 1 24 department with the form required by paragraph "a". 1 25 3. If satisfied that the foregoing conditions and 1 26 requirements have been complied with, the department shall 1 27 refund the amount claimed by the applicant for an amount not 1 28 greater than the amount of the use tax refund issued in the 1 29 use tax refund certificate pursuant to section 473.46. The 1 30 department shall not issue refunds for an amount greater than 1 31 the amount appropriated under or available for the refunds in 1 32 section 423.6B. An application for a refund under this 1 33 section received after the amount of appropriated funds under 1 34 section 423.6B has been expended shall be held by the 1 35 department until the following fiscal year, at which time the 2 1 department shall reconsider the application. 2 2 Sec. 2. NEW SECTION. 423.6B APPROPRIATION FOR FUEL= 2 3 EFFICIENT MOTOR VEHICLE REFUND. 2 4 There is appropriated from the general fund of the state 2 5 each fiscal year for the fiscal period beginning July 1, 2007, 2 6 and ending June 30, 2012, to the department of revenue the sum 2 7 of five million dollars to be used for fuel=efficient motor 2 8 vehicle use tax refunds established under section 423.6A. 2 9 Amounts appropriated pursuant to this section shall be in 2 10 addition to, and shall not replace, funds otherwise 2 11 appropriated to the department of revenue. Notwithstanding 2 12 section 8.33, moneys appropriated in this section that remain 2 13 unencumbered or unobligated at the close of each fiscal year 2 14 shall not revert but shall remain available for expenditure 2 15 for the purposes designated. 2 16 This section is repealed June 30, 2012. 2 17 Sec. 3. NEW SECTION. 473.46 FUEL=EFFICIENT MOTOR 2 18 VEHICLES TAX REFUND == CERTIFICATE. 2 19 1. A person who has purchased a new motor vehicle from a 2 20 new motor vehicle dealer in this state on or after July 1, 2 21 2007, may apply to the department for a use tax refund 2 22 certificate to be used to apply for a use tax refund pursuant 2 23 to section 423.6A. If approved by the department, the amount 2 24 of the use tax refund certificate shall equal ten dollars for 2 25 each mile per gallon that the motor vehicle's highway gasoline 2 26 mileage rating averaged, for city and highway driving as 2 27 estimated by the United States environmental protection 2 28 agency, above twenty=seven and one=half miles per gallon. A 2 29 use tax refund certificate shall not be issued for an amount 2 30 less than twenty=five dollars. 2 31 2. To apply, the person shall submit a completed 2 32 application to the department containing all of the following 2 33 information: 2 34 a. A copy of the motor vehicle dealer invoice for the 2 35 motor vehicle. 3 1 b. A copy of a valid Iowa vehicle registration for the 3 2 motor vehicle. The name appearing on the vehicle registration 3 3 shall be the same name as the name of the purchaser on the 3 4 dealer invoice. 3 5 c. Proof of the vehicle purchase, which may include but is 3 6 not limited to a copy of the front and back of a canceled 3 7 check, the finance agreement, or a dealer invoice indicating a 3 8 zero balance due and receipt of payment in full. 3 9 d. Any other information the department may require. 3 10 3. If upon receipt of the completed application the 3 11 department finds that the person is qualified for a use tax 3 12 refund pursuant to section 423.6A and this section, the 3 13 department shall calculate the amount of the use tax refund 3 14 for which the person is eligible and shall issue a use tax 3 15 refund certificate to the person or notify the person in 3 16 writing of its refusal to do so. A person whose application 3 17 is denied may file an appeal with the department within sixty 3 18 days from the date of denial pursuant to the provisions of 3 19 chapter 17A. 3 20 4. For the purposes of this section, "motor vehicle" means 3 21 the same as defined in section 321.1 but shall not include a 3 22 motorcycle, motorized bicycle, snowmobile, or all=terrain 3 23 vehicle. 3 24 5. Once a use tax refund certificate is issued pursuant to 3 25 this section, the person may apply to the department of 3 26 revenue for the use tax refund pursuant to section 423.6A. 3 27 EXPLANATION 3 28 This bill provides for a use tax refund for certain 3 29 fuel=efficient motor vehicles whose combined gasoline mileage 3 30 rating exceeds 27 and one=half miles per gallon. The amount 3 31 of the credit shall be either $10 for each mile per gallon 3 32 above 27 and one=half or $25, whichever is greater. The use 3 33 tax refund certification procedure shall be administered by 3 34 the department of natural resources. An amount equal to $5 3 35 million per fiscal year for five fiscal years is appropriated 4 1 to the department of revenue to issue the use tax refunds. 4 2 LSB 1948SS 82 4 3 rn:rj/cf/24.1