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House Amendment 1054

Amendment Text

PAG LIN
  1  1    Amend House File 199 as follows:
  1  2    #1.  By striking everything after the enacting
  1  3 clause and inserting the following:
  1  4    "Section 1.  Section 422.45, subsections 4 and 6,
  1  5 Code 1999, are amended to read as follows:
  1  6    4.  The gross receipts from sales of vehicles
  1  7 subject to registration or subject only to the
  1  8 issuance of a certificate of title and sales of
  1  9 aircraft subject to registration under section 328.20.
  1 10    6.  The gross receipts from "casual sales".
  1 11 However, this exemption does not apply to aircraft.
  1 12    Sec. 2.  Section 423.2, Code 1999, is amended to
  1 13 read as follows:
  1 14    423.2  IMPOSITION OF TAX.
  1 15    An excise tax is imposed on the use in this state
  1 16 of tangible personal property, including aircraft
  1 17 subject to registration under section 328.20,
  1 18 purchased for use in this state, at the rate of five
  1 19 percent of the purchase price of the property.  An
  1 20 excise tax is imposed on the use of leased vehicles at
  1 21 the rate of five percent of the amount otherwise
  1 22 subject to tax as calculated pursuant to section
  1 23 423.7A.  The excise tax is imposed upon every person
  1 24 using the property within this state until the tax has
  1 25 been paid directly to the county treasurer or the
  1 26 state department of transportation, to a retailer, or
  1 27 to the department.  An excise tax is imposed on the
  1 28 use in this state of services enumerated in section
  1 29 422.43 at the rate of five percent.  This tax is
  1 30 applicable where services are rendered, furnished, or
  1 31 performed in this state or where the product or result
  1 32 of the service is used in this state.  This tax is
  1 33 imposed on every person using the services or the
  1 34 product of the services in this state until the user
  1 35 has paid the tax either to an Iowa use tax permit
  1 36 holder or to the department.
  1 37    Sec. 3.  Section 423.4, subsection 4, Code 1999, is
  1 38 amended to read as follows:
  1 39    4.  Tangible personal property, the gross receipts
  1 40 from the sale of which are exempted from the retail
  1 41 sales tax by the terms of section 422.45, except
  1 42 subsection 4 and subsection 6 of section 422.45 as it
  1 43 relates to the sale of vehicles subject to
  1 44 registration or subject only to the issuance of a
  1 45 certificate of title and as it relates to aircraft
  1 46 subject to registration under section 328.20.
  1 47    Sec. 4. Section 423.4, Code 1999, is amended by
  1 48 adding the following new subsections:
  1 49    NEW SUBSECTION.  17.  Aircraft for use in a
  1 50 scheduled interstate federal aviation administration
  2  1 certificated air carrier operation.
  2  2    NEW SUBSECTION.  18.  Aircraft; tangible personal
  2  3 property permanently affixed or attached as a
  2  4 component part of the aircraft, including but not
  2  5 limited to repair or replacement materials or parts;
  2  6 and all services used for aircraft repair, remodeling,
  2  7 and maintenance services when such services are
  2  8 performed on aircraft, aircraft engines, or aircraft
  2  9 component materials or parts.  For the purposes of
  2 10 this exemption, "aircraft" means aircraft used in a
  2 11 scheduled interstate federal aviation administration
  2 12 certified air carrier operation.
  2 13    NEW SUBSECTION.  19.  Tangible personal property
  2 14 permanently affixed or attached as a component part of
  2 15 the aircraft, including but not limited to repair or
  2 16 replacement materials or parts; and all services used
  2 17 for aircraft repair, remodeling, and maintenance
  2 18 services when such services are performed on aircraft,
  2 19 aircraft engines, or aircraft component materials or
  2 20 parts.  For the purposes of this exemption, "aircraft"
  2 21 means aircraft used in nonscheduled interstate federal
  2 22 aviation administration certified air carrier
  2 23 operation operating under 14 C.F.R. ch. 1, pt. 135.
  2 24    NEW SUBSECTION.  20.  Aircraft sold to an aircraft
  2 25 dealer who in turn rents or leases the aircraft if all
  2 26 of the following apply:
  2 27    a.  The aircraft is kept in the inventory of the
  2 28 dealer for sale at all times.
  2 29    b.  The dealer reserves the right to immediately
  2 30 take the aircraft from the renter or lessee when a
  2 31 buyer is found.
  2 32    c.  The renter or lessee is aware that the dealer
  2 33 will immediately take the aircraft when a buyer is
  2 34 found.
  2 35    If an aircraft exempt under this subsection is used
  2 36 for any purpose other than leasing or renting, or the
  2 37 conditions in paragraphs "a", "b", and "c" are not
  2 38 continuously met, the dealer claiming the exemption
  2 39 under this subsection is liable for the tax that would
  2 40 have been due except for this subsection.  The tax
  2 41 shall be computed upon the original purchase price."
  2 42    #2.  Title page, line 1, by striking the words "of
  2 43 certain sales".  
  2 44 
  2 45 
  2 46                               
  2 47 JENKINS of Black Hawk 
  2 48 HF 199.301 78
  2 49 mg/cf

Text: H01053                            Text: H01055
Text: H01000 - H01099                   Text: H Index
Bills and Amendments: General Index     Bill History: General Index

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