Senate Study Bill 3208 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON BOLKCOM) A BILL FOR An Act exempting from the sales tax the sales price of a diesel 1 fuel trailer or seed tender used primarily in agricultural 2 production. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6002XC (1) 85 mm/sc

S.F. _____ Section 1. Section 423.3, subsection 8, Code 2014, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . d. (1) For purposes of this subsection, 3 the following items are exempt under paragraph “a” when used 4 primarily in agricultural production: 5 (a) A diesel fuel trailer, regardless of the vehicle to 6 which it is to be attached. 7 (b) A seed tender, regardless of the vehicle to which it is 8 to be attached. 9 (2) For purposes of this paragraph: 10 (a) “Fuel trailer” means a trailer that holds dyed diesel 11 fuel or diesel exhaust fluid and that is used to transport such 12 fuel or fluid to a self-propelled implement of husbandry. 13 (b) “Seed tender” means a trailer that holds seed and that 14 is used to transport seed to a self-propelled implement of 15 husbandry and load seed into a self-propelled implement of 16 husbandry. 17 EXPLANATION 18 The inclusion of this explanation does not constitute agreement with 19 the explanation’s substance by the members of the general assembly. 20 This bill exempts from the sales tax the sales price of 21 a diesel fuel trailer or a seed tender used primarily in 22 agricultural production, regardless of the vehicle to which 23 the diesel fuel trailer or seed tender is to be attached. 24 Under current law, such items are not exempt from sales tax 25 unless they are directly and primarily used in production of 26 agricultural products and are customarily drawn or attached to 27 self-propelled farm implements. 28 “Fuel trailer” and “seed tender” are both defined in the 29 bill. 30 By operation of Code section 423.6, an item exempt from the 31 imposition of the sales tax is also exempt from the use tax 32 imposed in Code section 423.5. 33 -1- LSB 6002XC (1) 85 mm/sc 1/ 1