House
File
664
-
Enrolled
House
File
664
AN
ACT
EXEMPTING
CERTAIN
LEASES
OR
RENTALS
BETWEEN
AFFILIATES
FROM
THE
SALES
AND
USE
TAX
AND
FROM
THE
FEE
FOR
NEW
VEHICLE
REGISTRATION,
AND
INCLUDING
EFFECTIVE
DATE
AND
RETROACTIVE
APPLICABILITY
PROVISIONS.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
Section
321.105A,
subsection
3,
paragraph
f,
Code
2024,
is
amended
by
adding
the
following
new
subparagraph:
NEW
SUBPARAGRAPH
.
(3)
(a)
A
vehicle
leased
between
affiliates,
when
the
lessor
has
paid
the
fee
imposed
in
subsection
2
on
the
leased
vehicle
prior
to
the
lease.
(b)
For
purposes
of
this
subparagraph:
(i)
“Affiliate”
means
a
lessor
that
directly
or
indirectly
controls,
is
controlled
with
or
by,
or
is
under
common
control
with
the
lessee.
(ii)
“Control”
or
“controlled”
means
any
of
the
following:
House
File
664,
p.
2
(A)
In
the
case
of
a
United
States
corporation,
the
ownership,
directly
or
indirectly,
of
fifty
percent
or
more
of
the
voting
power
to
elect
directors.
(B)
In
the
case
of
a
foreign
corporation,
if
the
voting
power
to
elect
the
directors
is
less
than
fifty
percent,
the
maximum
amount
allowed
by
applicable
law.
(C)
In
the
case
of
an
entity
other
than
a
corporation,
fifty
percent
or
more
ownership
interest
in
the
entity,
or
the
power
to
direct
the
management
of
the
entity.
Sec.
2.
Section
423.3,
Code
2024,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
110.
a.
The
sales
price
on
the
lease
or
rental
of
a
motor
vehicle
between
affiliates
when
the
lessor
or
entity
providing
the
motor
vehicle
for
lease
or
rental
has
paid
a
fee
imposed
under
section
321.105A
on
the
motor
vehicle
leased
or
rented
prior
to
such
lease
or
rental
to
the
affiliate.
b.
For
purposes
of
this
subsection:
(1)
“Affiliate”
means
a
lessor
or
entity
providing
the
motor
vehicle
for
rental
that
directly
or
indirectly
controls,
is
controlled
with
or
by,
or
is
under
common
control
with
the
lessee
or
renter.
(2)
“Control”
or
“controlled”
means
any
of
the
following:
(a)
In
the
case
of
a
United
States
corporation,
the
ownership,
directly
or
indirectly,
of
fifty
percent
or
more
of
the
voting
power
to
elect
directors.
(b)
In
the
case
of
a
foreign
corporation,
if
the
voting
power
to
elect
the
directors
is
less
than
fifty
percent,
the
maximum
amount
allowed
by
applicable
law.
(c)
In
the
case
of
an
entity
other
than
a
corporation,
fifty
percent
or
more
ownership
interest
in
the
entity,
or
the
power
to
direct
the
management
of
the
entity.
Sec.
3.
REFUNDS.
Refunds
of
taxes,
interest,
or
penalties
which
arise
from
the
enactment
of
this
Act,
for
leases
or
rentals
occurring
between
January
1,
2015,
and
the
effective
date
of
this
Act,
shall
not
be
allowed,
notwithstanding
any
other
provision
of
the
law
to
the
contrary.
Sec.
4.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
House
File
664,
p.
3
Sec.
5.
RETROACTIVE
APPLICABILITY.
This
Act
applies
retroactively
to
January
1,
2015,
for
leases
or
rentals
occurring
on
or
after
that
date.
______________________________
PAT
GRASSLEY
Speaker
of
the
House
______________________________
AMY
SINCLAIR
President
of
the
Senate
I
hereby
certify
that
this
bill
originated
in
the
House
and
is
known
as
House
File
664,
Ninetieth
General
Assembly.
______________________________
MEGHAN
NELSON
Chief
Clerk
of
the
House
Approved
_______________,
2024
______________________________
KIM
REYNOLDS
Governor