Text: HF00198                           Text: HF00200
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House File 199

Partial Bill History

Bill Text

PAG LIN
  1  1 
  1  2                                             HOUSE FILE 199
  1  3 
  1  4                             AN ACT
  1  5 RELATING TO THE TAXATION OF AIRCRAFT UNDER THE STATE SALES,
  1  6    SERVICES, AND USE TAXES.
  1  7 
  1  8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  1  9 
  1 10    Section 1.  Section 422.45, subsections 4 and 6, Code 1999,
  1 11 are amended to read as follows:
  1 12    4.  The gross receipts from sales of vehicles subject to
  1 13 registration or subject only to the issuance of a certificate
  1 14 of title and sales of aircraft subject to registration under
  1 15 section 328.20.
  1 16    6.  The gross receipts from "casual sales".  However, this
  1 17 exemption does not apply to aircraft.
  1 18    Sec. 2.  Section 423.2, Code 1999, is amended to read as
  1 19 follows:
  1 20    423.2  IMPOSITION OF TAX.
  1 21    An excise tax is imposed on the use in this state of
  1 22 tangible personal property, including aircraft subject to
  1 23 registration under section 328.20, purchased for use in this
  1 24 state, at the rate of five percent of the purchase price of
  1 25 the property.  An excise tax is imposed on the use of leased
  1 26 vehicles at the rate of five percent of the amount otherwise
  1 27 subject to tax as calculated pursuant to section 423.7A.  The
  1 28 excise tax is imposed upon every person using the property
  1 29 within this state until the tax has been paid directly to the
  1 30 county treasurer or the state department of transportation, to
  1 31 a retailer, or to the department.  An excise tax is imposed on
  1 32 the use in this state of services enumerated in section 422.43
  1 33 at the rate of five percent.  This tax is applicable where
  1 34 services are rendered, furnished, or performed in this state
  1 35 or where the product or result of the service is used in this
  2  1 state.  This tax is imposed on every person using the services
  2  2 or the product of the services in this state until the user
  2  3 has paid the tax either to an Iowa use tax permit holder or to
  2  4 the department.
  2  5    Sec. 3.  Section 423.4, subsection 4, Code 1999, is amended
  2  6 to read as follows:
  2  7    4.  Tangible personal property, the gross receipts from the
  2  8 sale of which are exempted from the retail sales tax by the
  2  9 terms of section 422.45, except subsection 4 and subsection 6
  2 10 of section 422.45 as it relates to the sale of vehicles
  2 11 subject to registration or subject only to the issuance of a
  2 12 certificate of title and as it relates to aircraft subject to
  2 13 registration under section 328.20.
  2 14    Sec. 4.  Section 423.4, Code 1999, is amended by adding the
  2 15 following new subsections:
  2 16    NEW SUBSECTION.  17.  Aircraft for use in a scheduled
  2 17 interstate federal aviation administration certificated air
  2 18 carrier operation.
  2 19    NEW SUBSECTION.  18.  Aircraft; tangible personal property
  2 20 permanently affixed or attached as a component part of the
  2 21 aircraft, including but not limited to repair or replacement
  2 22 materials or parts; and all services used for aircraft repair,
  2 23 remodeling, and maintenance services when such services are
  2 24 performed on aircraft, aircraft engines, or aircraft component
  2 25 materials or parts.  For the purposes of this exemption,
  2 26 "aircraft" means aircraft used in a scheduled interstate
  2 27 federal aviation administration certified air carrier
  2 28 operation.
  2 29    NEW SUBSECTION.  19.  Tangible personal property
  2 30 permanently affixed or attached as a component part of the
  2 31 aircraft, including but not limited to repair or replacement
  2 32 materials or parts; and all services used for aircraft repair,
  2 33 remodeling, and maintenance services when such services are
  2 34 performed on aircraft, aircraft engines, or aircraft component
  2 35 materials or parts.  For the purposes of this exemption,
  3  1 "aircraft" means aircraft used in nonscheduled interstate
  3  2 federal aviation administration certified air carrier
  3  3 operation operating under 14 C.F.R. ch. 1, pt. 135.
  3  4    NEW SUBSECTION.  20.  Aircraft sold to an aircraft dealer
  3  5 who in turn rents or leases the aircraft if all of the
  3  6 following apply:
  3  7    a.  The aircraft is kept in the inventory of the dealer for
  3  8 sale at all times.
  3  9    b.  The dealer reserves the right to immediately take the
  3 10 aircraft from the renter or lessee when a buyer is found.
  3 11    c.  The renter or lessee is aware that the dealer will
  3 12 immediately take the aircraft when a buyer is found.
  3 13    If an aircraft exempt under this subsection is used for any
  3 14 purpose other than leasing or renting, or the conditions in
  3 15 paragraphs "a", "b", and "c" are not continuously met, the
  3 16 dealer claiming the exemption under this subsection is liable
  3 17 for the tax that would have been due except for this
  3 18 subsection.  The tax shall be computed upon the original
  3 19 purchase price.  
  3 20 
  3 21 
  3 22                                                             
  3 23                               RON J. CORBETT
  3 24                               Speaker of the House
  3 25 
  3 26 
  3 27                                                             
  3 28                               MARY E. KRAMER
  3 29                               President of the Senate
  3 30 
  3 31    I hereby certify that this bill originated in the House and
  3 32 is known as House File 199, Seventy-eighth General Assembly.
  3 33 
  3 34 
  3 35                                                             
  4  1                               ELIZABETH ISAACSON
  4  2                               Chief Clerk of the House
  4  3 Approved                , 1999
  4  4 
  4  5 
  4  6                               
  4  7 THOMAS J. VILSACK
  4  8 Governor
     

Text: HF00198                           Text: HF00200
Text: HF00100 - HF00199                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index

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