Text: HF00656                           Text: HF00658
Text: HF00600 - HF00699                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index

House File 657

Partial Bill History

Bill Text

  1  1    Section 1.  Section 422.45, subsection 18, Code 1999, is
  1  2 amended to read as follows:
  1  3    18.  Gross receipts from the sale of tangible personal
  1  4 property, except vehicles subject to registration, to a person
  1  5 regularly engaged in the business of leasing if the period of
  1  6 the lease is for more than five months or renting, or a person
  1  7 regularly engaged in the consumer rental purchase business if
  1  8 the property is to be utilized in a transaction involving a
  1  9 consumer rental purchase agreement as defined in section
  1 10 537.3604, subsection 8, and the leasing, renting, or consumer
  1 11 rental of the property is subject to taxation under this
  1 12 division.  If tangible personal property exempt under this
  1 13 subsection is made use of for any purpose other than leasing,
  1 14 renting, or consumer rental purchase, the person claiming the
  1 15 exemption under this subsection is liable for the tax that
  1 16 would have been due except for this subsection.  The tax shall
  1 17 be computed upon the original purchase price.  The aggregate
  1 18 of the tax paid on the leasing, renting, or rental purchase of
  1 19 such tangible personal property, not to exceed the amount of
  1 20 the sales tax owed, shall be credited against the tax.  This
  1 21 sales tax is in addition to any sales or use tax that may be
  1 22 imposed as a result of the disposal of such tangible personal
  1 23 property.  
  1 24                           EXPLANATION
  1 25    The bill exempts from the sales and use taxes the sale of
  1 26 tangible personal property to a person regularly engaged in
  1 27 the business of leasing or renting the property or regularly
  1 28 engaged in the consumer rental purchase business.  However,
  1 29 the exemption only applies if the lease, rental, or consumer
  1 30 rental of the tangible personal property is subject to sales
  1 31 or use tax when it is leased or rented.  If the property is
  1 32 used for other than leasing or rental, then sales or use tax
  1 33 is due with credit for the amount of sales or use tax paid if
  1 34 previously leased or rented.  
  1 35 LSB 2985HV 78
  2  1 mg/cf/24

Text: HF00656                           Text: HF00658
Text: HF00600 - HF00699                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index

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