Text: HSB00070 Text: HSB00072 Text: HSB00000 - HSB00099 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. Section 312.1, Code 1995, is amended by adding
1 2 the following new subsection and renumbering the remaining
1 3 subsection:
1 4 NEW SUBSECTION. 5. Revenue derived from the excise tax
1 5 imposed upon the leasing of motor vehicles as provided by
1 6 section 423B.5.
1 7 Sec. 2. NEW SECTION. 423B.1 SHORT TITLE.
1 8 This chapter may be cited as the "Motor Vehicle Lease Tax
1 9 Act".
1 10 Sec. 3. NEW SECTION. 423B.2 DEFINITIONS.
1 11 For purposes of this chapter, unless the context otherwise
1 12 requires:
1 13 1. "Department" means the department of revenue and
1 14 finance.
1 15 2. "Lease" means a written agreement providing for the
1 16 transfer of the possession or right to possession of a motor
1 17 vehicle to a lessee for a valuable consideration for a period
1 18 of twelve months or more.
1 19 3. "Lease price" means the total amount for which a motor
1 20 vehicle is leased, valued in money, whether paid in money or
1 21 otherwise, provided that a cash discount taken on a lease is
1 22 not included, and a cash rebate which is provided by a motor
1 23 vehicle manufacturer to the lessee of the motor vehicle is not
1 24 included if the rebate is applied to the lease price of the
1 25 vehicle.
1 26 4. "Lessee" means a person to whom the possession or the
1 27 right to possession of a motor vehicle is transferred for a
1 28 period of twelve months or more for a valuable consideration
1 29 which is paid by the lessee or by another person.
1 30 5. "Lessor" means a person who is engaged in the business
1 31 of leasing motor vehicles to lessees and who is licensed
1 32 pursuant to chapter 321F.
1 33 6. "Motor vehicle" means a self-propelled vehicle subject
1 34 to registration under chapter 321, with a gross vehicle weight
1 35 rating of less than sixteen thousand pounds, excluding
2 1 motorcycles and motorized bicycles.
2 2 7. "Person" means a person as defined in section 423.1.
2 3 Sec. 4. NEW SECTION. 423B.3 TAX ON RENTAL OF
2 4 AUTOMOBILES.
2 5 1. A tax of five percent is imposed upon the lease price
2 6 of a motor vehicle. The tax shall not be imposed on any lease
2 7 transaction taxable under the sales and services tax, as
2 8 provided in section 422.45, or upon any lease transaction if
2 9 the lessor has paid the state use tax on the motor vehicle
2 10 under chapter 423.
2 11 2. The lease price of the motor vehicle and the tax shall
2 12 be stated in the lease as distinct items.
2 13 3. The tax shall be collected by the lessor throughout the
2 14 term of the lease in the same manner as the lease price is
2 15 paid.
2 16 Sec. 5. NEW SECTION. 423B.4 ADMINISTRATION AND
2 17 ENFORCEMENT.
2 18 All powers and requirements of the director of revenue and
2 19 finance to administer the state use tax law under chapter 423
2 20 are applicable to the administration of the tax imposed under
2 21 this chapter.
2 22 Sec. 6. NEW SECTION. 423B.5 DEPOSIT OF REVENUE.
2 23 The revenue arising from the operation of this chapter
2 24 shall be credited to the road use tax fund.
2 25 Sec. 7. Section 423.4, Code 1995, is amended by adding the
2 26 following new subsection:
2 27 NEW SUBSECTION. 16. Motor vehicles subject to regis-
2 28 tration under chapter 321, with a gross vehicle weight rating
2 29 of less than sixteen thousand pounds, excluding motorcycles
2 30 and motorized bicycles, when purchased for lease, or
2 31 registered and titled by a motor vehicle dealer licensed
2 32 pursuant to chapter 322 for lease, and actually leased for a
2 33 period of twelve months or more by a lessor as defined in
2 34 section 423B.2, if the lease of the vehicle is subject to
2 35 taxation under chapter 423B.
3 1 Sec. 8. APPLICABILITY PROVISIONS. This Act applies to
3 2 leases entered into on or after the effective date of this
3 3 Act.
3 4 Sec. 9. EFFECTIVE DATE. This Act, being deemed of
3 5 immediate importance, takes effect upon enactment.
3 6 EXPLANATION
3 7 This bill creates a new chapter 423B which is entitled the
3 8 "Motor Vehicle Lease Tax Act". Chapter 423B provides that a
3 9 lessee who enters into a lease for use of a motor vehicle for
3 10 a period of 12 months or longer shall pay a 5 percent lease
3 11 tax which is based upon the lease price of the motor vehicle.
3 12 The "lease price" of the motor vehicle is defined as the total
3 13 amount for which the motor vehicle is leased. Current law
3 14 requires payment of use tax for the entire value of the motor
3 15 vehicle at the inception of the lease. This bill requires
3 16 payment of lease tax only upon the leased value of the car for
3 17 the period of time in which the vehicle is leased. The bill
3 18 provides that the tax is collected in the same manner as lease
3 19 payments are collected throughout the term of the lease. It
3 20 exempts leased vehicles from paying the use tax under section
3 21 423.4 and provides that all moneys collected from the lease
3 22 tax be credited to the road use tax fund. Lease is defined in
3 23 the bill to include only a written agreement for 12 months or
3 24 longer.
3 25 For purposes of chapter 423B, "motor vehicle" is defined to
3 26 mean a vehicle subject to registration with a gross vehicle
3 27 weight rating of less than 16,000 pounds, excluding
3 28 motorcycles and motorized bicycles.
3 29 This bill is only applicable to leases entered into on or
3 30 after the effective date of this Act and is effective upon
3 31 enactment.
3 32 LSB 1509YC 76
3 33 js/jw/5
Text: HSB00070 Text: HSB00072 Text: HSB00000 - HSB00099 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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