SF 596 (LSB 1940SS (1) 88)

SENATE FILE 596

BY  SINCLAIR

A BILL FOR

An Act exempting from the state sales and use tax the purchase price and installation costs of emergency generators used for power outages or natural disasters.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 423.3, Code 2019, is amended by adding the following new subsection:
   NEW SUBSECTION.  107.  a.  The sales price from the sale or rental of an emergency generator.
   b.  For purposes of this subsection, “emergency generator” means a stationary combustion device for only residential property use, such as a reciprocating internal combustion engine or turbine that serves solely as a secondary source of mechanical or electrical power whenever the primary energy supply is disrupted or discontinued during power outages or natural disasters that are beyond the control of the owner of the generator.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill exempts from the state sales and use tax the purchase price of emergency generators used for power outages or natural disasters.
   The bill defines “emergency generator” to mean a stationary combustion device for only residential property use, such as a reciprocating internal combustion engine or turbine that serves solely as a secondary source of mechanical or electrical power whenever the primary energy supply is disrupted or discontinued during power outages or natural disasters that are beyond the control of the owner of the generator.
   By operation of Code section 423.6, an item exempt from the imposition of the sales tax is also exempt from the use tax imposed in Code section 423.5.