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Text: S05123                            Text: S05125
Text: S05100 - S05199                   Text: S Index
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Senate Amendment 5124

Amendment Text

PAG LIN
  1  1    Amend Senate File 2128 as follows:
  1  2    #1.  Page 1, by inserting after line 2 the
  1  3 following:
  1  4    "Sec.    .  Section 331.557, subsection 3, Code
  1  5 1995, is amended to read as follows:
  1  6    3.  Collect the use tax on vehicles subject to
  1  7 registration as provided in sections 423.6, and 423.7,
  1  8 and 423.7A.
  1  9    Sec.    .  Section 423.2, Code 1995, is amended to
  1 10 read as follows:
  1 11    423.2  IMPOSITION OF TAX.
  1 12    An excise tax is imposed on the use in this state
  1 13 of tangible personal property purchased for use in
  1 14 this state, at the rate of five percent of the
  1 15 purchase price of the property.  An excise tax is
  1 16 imposed on the use of leased vehicles at the rate of
  1 17 five percent of the amount otherwise subject to tax as
  1 18 calculated pursuant to section 423.7A.  The excise tax
  1 19 is imposed upon every person using the property within
  1 20 this state until the tax has been paid directly to the
  1 21 county treasurer or the state department of
  1 22 transportation, to a retailer, or to the department.
  1 23 An excise tax is imposed on the use in this state of
  1 24 services enumerated in section 422.43 at the rate of
  1 25 five percent.  This tax is applicable where services
  1 26 are rendered, furnished, or performed in this state or
  1 27 where the product or result of the service is used in
  1 28 this state.  This tax is imposed on every person using
  1 29 the services or the product of the services in this
  1 30 state until the user has paid the tax either to an
  1 31 Iowa use tax permit holder or to the department.
  1 32    Sec.    .  Section 423.4, Code 1995, is amended by
  1 33 adding the following new subsection:
  1 34    NEW SUBSECTION.  16.  Vehicles subject to
  1 35 registration under chapter 321, with a gross vehicle
  1 36 weight rating of less than sixteen thousand pounds,
  1 37 excluding motorcycles and motorized bicycles, when
  1 38 purchased for lease and titled by the lessor licensed
  1 39 pursuant to chapter 321F and actually leased for a
  1 40 period of twelve months or more if the lease of the
  1 41 vehicle is subject to taxation under section 423.7A.
  1 42    Sec.    .  Section 423.6, subsection 1, Code 1995,
  1 43 is amended to read as follows:
  1 44    1.  The tax upon the use of all vehicles subject to
  1 45 registration or subject only to the issuance of a
  1 46 certificate of title shall be collected by the county
  1 47 treasurer or the state department of transportation
  1 48 pursuant to section sections 423.7 and 423.7A.  The
  1 49 county treasurer shall retain one dollar from each tax
  1 50 payment collected, to be credited to the county
  2  1 general fund.
  2  2    Sec.    .  NEW SECTION.  423.7A  MOTOR VEHICLE
  2  3 LEASE TAX.
  2  4    1.  The tax imposed upon the use of leased vehicles
  2  5 subject to registration under chapter 321, with gross
  2  6 vehicle weight ratings of less than sixteen thousand
  2  7 pounds, excluding motorcycles and motorized bicycles,
  2  8 which are leased by a lessor licensed pursuant to
  2  9 chapter 321F for a period of twelve months or more
  2 10 shall be paid by the owner of the vehicle to the
  2 11 county treasurer or state department of transportation
  2 12 from whom the registration receipt or certificate of
  2 13 title is obtained.  A registration receipt for a
  2 14 vehicle subject to registration or issuance of a
  2 15 certificate of title shall not be issued until the tax
  2 16 is paid in the initial instance.
  2 17    2.  The amount subject to tax shall be computed on
  2 18 each separate lease transaction by multiplying the
  2 19 number of months of the lease by the monthly lease
  2 20 payments, plus the downpayment, less any
  2 21 manufacturer's rebate.  The county treasurer or the
  2 22 state department of transportation shall require every
  2 23 applicant for a registration receipt for a vehicle
  2 24 subject to tax under this section to supply informa-
  2 25 tion as the county treasurer or director deems
  2 26 necessary as to the date of the lease transaction, the
  2 27 lease price, and other information relative to the
  2 28 lease of the vehicle.
  2 29    3.  On or before the tenth day of each month the
  2 30 county treasurer or the state department of
  2 31 transportation shall remit to the department the
  2 32 amount of the taxes collected during the preceding
  2 33 month.
  2 34    4.  If the lease is terminated prior to the
  2 35 termination date contained in the lease agreement, no
  2 36 refund shall be allowed for tax previously paid on the
  2 37 monthly rental payments.
  2 38    Sec.    .  Section 423.24, subsection 1, unnumbered
  2 39 paragraph 1, Code Supplement 1995, is amended to read
  2 40 as follows:
  2 41    Eighty percent of all revenues derived from the use
  2 42 tax on motor vehicles, trailers, and motor vehicle
  2 43 accessories and equipment as collected pursuant to
  2 44 section 423.7 and section 423.7A shall be deposited
  2 45 and credited as follows:"
  2 46    #2.  Page 2, by inserting after line 3 the
  2 47 following:
  2 48    "Sec.    .  APPLICABILITY.  The section of this Act
  2 49 which enacts section 423.7A applies to leases entered
  2 50 into on or after July 1, 1996."
  3  1    #3.  Title page, line 4, by inserting after the
  3  2 word "revenues," the following:  "providing for use
  3  3 tax payments for leased vehicles,".
  3  4    #4.  Title page, line 5, by inserting after the
  3  5 word "state" the following:  ", and providing an
  3  6 applicability provision".
  3  7    #5.  By renumbering as necessary.  
  3  8 
  3  9 
  3 10                              
  3 11 MICHAEL E. GRONSTAL
  3 12 SF 2128.502 76
  3 13 js/jw
     

Text: S05123                            Text: S05125
Text: S05100 - S05199                   Text: S Index
Bills and Amendments: General Index     Bill History: General Index

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