Text: HF00208 Text: HF00210 Text: HF00200 - HF00299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. Section 422.45, subsection 18, Code 1997, is
1 2 amended to read as follows:
1 3 18. Gross receipts from the sale of tangible personal
1 4 property, except vehicles subject to registration, to a person
1 5 regularly engaged in the business of leasing if the period of
1 6 the lease is for more than one year, or a person regularly
1 7 engaged in the consumer rental purchase business if the
1 8 property is to be utilized in a transaction involving a
1 9 consumer rental purchase agreement as defined in section
1 10 537.3604, subsection 8, or a person whose intent is to lease
1 11 or rent the property even if not regularly engaged in the
1 12 business of leasing or renting, and the leasing, renting, or
1 13 consumer rental of the property is subject to taxation under
1 14 this division. If tangible personal property exempt under
1 15 this subsection is made use of for any purpose other than
1 16 leasing, renting, or consumer rental purchase, the person
1 17 claiming the exemption under this subsection is liable for the
1 18 tax that would have been due except for this subsection. The
1 19 tax shall be computed upon the original purchase price. The
1 20 aggregate of the tax paid on the leasing, renting, or rental
1 21 purchase of such tangible personal property, not to exceed the
1 22 amount of the sales tax owed, shall be credited against the
1 23 tax. This sales tax is in addition to any sales or use tax
1 24 that may be imposed as a result of the disposal of such
1 25 tangible personal property.
1 26 EXPLANATION
1 27 The bill exempts from the sales and use taxes the sale of
1 28 tangible personal property to a person who intends to lease or
1 29 rent the property, even if the person is not in the business
1 30 of leasing or renting the property. However, the exemption
1 31 only applies if the lease or rental is subject to sales or use
1 32 tax when it is leased or rented. If the property is used for
1 33 other than leasing or rental, then sales or use tax is due
1 34 with credit for the amount of sales or use tax paid if
1 35 previously leased or rented.
2 1 LSB 1906HH 77
2 2 mg/cf/24
Text: HF00208 Text: HF00210 Text: HF00200 - HF00299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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