Text: SF00221 Text: SF00223 Text: SF00200 - SF00299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 SENATE FILE 222 1 2 1 3 AN ACT 1 4 RELATING TO THE USE TAX ON MOTOR VEHICLE LEASING. 1 5 1 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 7 1 8 Section 1. Section 423.4, subsection 16, Code 1997, is 1 9 amended by adding the following new unnumbered paragraph: 1 10 NEW UNNUMBERED PARAGRAPH. A lessor may maintain the 1 11 exemption from use tax under this subsection for a qualifying 1 12 lease that terminates at the conclusion or prior to the 1 13 contracted expiration date, if the lessor does not use the 1 14 vehicle for any purpose other than for lease. Once the 1 15 vehicle is used by the lessor for a purpose other than for 1 16 lease, the exemption from use tax under this subsection no 1 17 longer applies and, unless there is an exemption from the use 1 18 tax, use tax is due on the fair market value of the vehicle 1 19 determined at the time the lessor uses the vehicle for a 1 20 purpose other than for lease, payable to the department. If 1 21 the lessor holds the vehicle exclusively for sale, use tax is 1 22 due and payable on the purchase price of the vehicle at the 1 23 time of purchase pursuant to this chapter. 1 24 Sec. 2. Section 423.7A, subsections 1, 2, and 4, Code 1 25 1997, are amended to read as follows: 1 26 1. The tax imposed upon the use of leased vehicles subject 1 27 to registration under chapter 321, with gross vehicle weight 1 28 ratings of less than sixteen thousand pounds, excluding 1 29 motorcycles and motorized bicycles, which are leased by a 1 30 lessor licensed pursuant to chapter 321F for a period of 1 31 twelve months or more shall be paid by the owner of the 1 32 vehicle to the county treasurer or state department of 1 33 transportation from whom the registration receipt or 1 34 certificate of title is obtained. A registration receipt for 1 35 a vehicle subject to registration or issuance of a certificate 2 1 of title shall not be issued until the tax is paid in the 2 2 initial instance. Tax on the lease transaction that does not 2 3 require titling or registration of the vehicle shall be 2 4 remitted to the department. Tax and the reporting of tax due 2 5 to the department shall be remitted on or before fifteen days 2 6 from the last day of the month that the vehicle lease tax 2 7 becomes due. Failure to timely report or remit any of the tax 2 8 when due shall result in a penalty and interest being imposed 2 9 on the tax due pursuant to sections 423.18 and 423.23. 2 10 2. The amount subject to tax shall be computed on each 2 11 separate lease transaction bymultiplying the number of months2 12of the lease by the monthlytaking the total of the lease 2 13 payments, plus the down payment,less any manufacturer's2 14rebateand excluding all of the following: 2 15 a. Title fee. 2 16 b. Registration fees. 2 17 c. Vehicle lease tax pursuant to this section. 2 18 d. Federal excise taxes attributable to the sale of the 2 19 vehicle to the owner or to the lease of the vehicle by the 2 20 owner. 2 21 e. Optional service or warranty contracts subject to tax 2 22 pursuant to section 422.43, subsection 6. 2 23 f. Insurance. 2 24 g. Manufacturer's rebate. 2 25 h. Refundable deposit. 2 26 i. Finance charges, if any, on items listed in paragraphs 2 27 "a" through "h". 2 28 If any or all of the items in paragraphs "a" through "i" are 2 29 excluded from the taxable lease price, the owner shall 2 30 maintain adequate records of the amounts of those items. If 2 31 the parties to a lease enter into an agreement providing that 2 32 the tax imposed under this statute is to be paid by the lessee 2 33 or included in the monthly lease payments to be paid by the 2 34 lessee, the total cost of the tax shall not be included in the 2 35 computation of lease price for the purpose of taxation under 3 1 this section. The county treasureror, the state department 3 2 of transportation, or the department of revenue and finance 3 3 shall require every applicant for a registration receipt for a 3 4 vehicle subject to tax under this section to supply 3 5 information as the county treasurer or director deems 3 6 necessary as to the date of the lease transaction, the lease 3 7 price, and other information relative to the lease of the 3 8 vehicle. 3 9 4. If the lease is terminated prior to the termination 3 10 date contained in the lease agreement, no refund shall be 3 11 allowed for tax previously paidon the monthly rental payments3 12 under this section, except as provided in section 322G.4. 3 13 3 14 3 15 3 16 3 17 MARY E. KRAMER 3 18 President of the Senate 3 19 3 20 3 21 3 22 RON J. CORBETT 3 23 Speaker of the House 3 24 3 25 I hereby certify that this bill originated in the Senate and 3 26 is known as Senate File 222, Seventy-seventh General Assembly. 3 27 3 28 3 29 3 30 MARY PAT GUNDERSON 3 31 Secretary of the Senate 3 32 Approved , 1997 3 33 3 34 3 35 4 1 TERRY E. BRANSTAD 4 2 Governor
Text: SF00221 Text: SF00223 Text: SF00200 - SF00299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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