1. A tax of five percent is imposed upon the rental price of an automobile if the rental transaction is subject to the sales and services tax under chapter 422, division IV, or the use tax under chapter 423. The tax shall not be imposed on any rental transaction not taxable under the state sales and services tax, as provided in section 422.45, or the state use tax, as provided in section 423.4, on automobile rental receipts.
2. The lessor shall collect the tax by adding the tax to the rental price of the automobile.
3. The tax, when collected, shall be stated as a distinct item separate and apart from the rental price of the automobile and the sales and services tax imposed under chapter 422, division IV, or the use tax imposed under chapter 423.
92 Acts, ch 1006, § 4; 92 Acts, 2nd Ex, ch 1001, § 210
Referred to in § 422C.4
Iowa General Assembly
Search: Iowa Code 1995
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