Text: HSB00699                          Text: HSB00701
Text: HSB00700 - HSB00799               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index



House Study Bill 700

Bill Text

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  1 14 exemption was revoked.  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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