House File 224

                                       HOUSE FILE       
                                       BY  RAECKER


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to the automobile rental excise tax and making an
  2    appropriation.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 2110YH 80
  5 tm/cl/14

PAG LIN

  1  1    Section 1.  Section 422C.3, subsection 1, Code 2003, is
  1  2 amended to read as follows:
  1  3    1.  A tax of five six percent is imposed upon the rental
  1  4 price of an automobile if the rental transaction is subject to
  1  5 the sales and services tax under chapter 422, division IV, or
  1  6 the use tax under chapter 423.  The tax shall not be imposed
  1  7 on any rental transaction not taxable under the state sales
  1  8 and services tax, as provided in section 422.45, or the state
  1  9 use tax, as provided in section 423.4, on automobile rental
  1 10 receipts.
  1 11    Sec. 2.  Section 422C.5, Code 2003, is amended by striking
  1 12 the section and inserting in lieu thereof the following:
  1 13    422C.5  DEPOSIT OF REVENUE -- APPROPRIATION.
  1 14    1.  Five out of every six cents collected pursuant to the
  1 15 tax under section 422C.3 shall be credited to the road use tax
  1 16 fund created under section 312.1.  The remaining one cent
  1 17 shall be credited to the general fund of the state.
  1 18    2.  On July 1 of each year, there is appropriated from the
  1 19 general fund of the state to the department of economic
  1 20 development an amount equal to the total amount credited to
  1 21 the general fund during the previous fiscal year pursuant to
  1 22 subsection 1.  Moneys appropriated to the department pursuant
  1 23 to this subsection shall be used for tourism advertising
  1 24 purposes.
  1 25                           EXPLANATION
  1 26    This bill relates to the automobile rental excise tax and
  1 27 makes a related appropriation to the department of economic
  1 28 development.
  1 29    The bill increases the excise tax on the rental of
  1 30 automobiles from 5 percent of the rental price to 6 percent of
  1 31 the rental price.  Currently, all revenue from the excise tax
  1 32 is credited to the road use tax fund.  The bill provides that
  1 33 the increase in the excise tax shall be credited to the
  1 34 general fund of the state and, on July 1 of each year, the
  1 35 moneys credited to the general fund from the increase in the
  2  1 excise tax during the previous fiscal year are appropriated to
  2  2 the department of economic development for purposes of tourism
  2  3 advertising.
  2  4 LSB 2110YH 80
  2  5 tm/cl/14