Text: HSB00699 Text: HSB00701 Text: HSB00700 - HSB00799 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. Section 423.4, subsection 10, Code Supplement
1 2 1997, is amended by adding the following new unnumbered
1 3 paragraph:
1 4 NEW UNNUMBERED PARAGRAPH. For the purposes of this
1 5 subsection, if a vehicle meets the requirement that twenty-
1 6 five percent of the miles operated accrues in states other
1 7 than Iowa in each year of the first four-year period of
1 8 operation, the exemption from use tax shall continue until the
1 9 vehicle is sold or transferred. If the vehicle is found to
1 10 have not met the exemption requirements or the exemption was
1 11 revoked, the value of the vehicle upon which the use tax shall
1 12 be imposed is the book or market value, whichever is less, at
1 13 the time the exemption requirements were not met or the
1 14 exemption was revoked.
1 15 EXPLANATION
1 16 Present law allows a use tax exemption for commercial
1 17 vehicles which are used substantially in interstate commerce.
1 18 To be used "substantially in interstate commerce", at least 25
1 19 percent of the miles operated by the vehicle must be in states
1 20 other than Iowa. The bill provides that if this 25 percent
1 21 minimum requirement is met for each year of the first four-
1 22 year period of operation, the exemption would continue until
1 23 the vehicle is sold or transferred.
1 24 The bill also provides that if the exemption requirements
1 25 are not met or the exemption is revoked, the tax is imposed on
1 26 the lesser of the book value or market value at the time the
1 27 requirements are not met or the exemption is revoked.
1 28 LSB 4377HC 77
1 29 mg/cf/24
Text: HSB00699 Text: HSB00701 Text: HSB00700 - HSB00799 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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