Senate File 82
SENATE FILE
BY REHBERG
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to aviation by creating an aviation investment
2 fund and making an appropriation.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 1038SS 80
5 dea/pj/5
PAG LIN
1 1 Section 1. Section 328.24, unnumbered paragraph 1, Code
1 2 2003, is amended to read as follows:
1 3 If, during the year for which an aircraft, except
1 4 nonresident aircraft used for the application of herbicides
1 5 and pesticides, was registered and the required fee paid, the
1 6 aircraft is destroyed by fire or accident or junked, and its
1 7 identity as an aircraft entirely eliminated, or it is removed
1 8 and continuously used beyond the boundaries of the state, then
1 9 the owner in whose name it was registered at the time of
1 10 destruction, dismantling, or removal from the state shall
1 11 return the certificate of registration to the department
1 12 within ten days and make affidavit of the destruction,
1 13 dismantling, or removal and make claim for the refund. The
1 14 refund shall be paid from the general aviation investment fund
1 15 of the state.
1 16 Sec. 2. Section 328.36, Code 2003, is amended to read as
1 17 follows:
1 18 328.36 DEPOSIT AND USE OF REVENUES AVIATION INVESTMENT
1 19 FUND.
1 20 An aviation investment fund is created in the office of the
1 21 treasurer of state under the control of the department. All
1 22 moneys received by the department pursuant to section 328.21
1 23 or other sections of this chapter and those moneys remaining
1 24 after the cost of administering the aviation fuel tax fund as
1 25 provided in section 452A.82 shall be deposited into the
1 26 general aviation investment fund of the state and shall be
1 27 subject to the requirements of section 8.60. Moneys from tax
1 28 receipts on the sales of aircraft and aircraft parts shall be
1 29 deposited in the fund in accordance with section 422.43 or
1 30 423.24, as applicable. Moneys in the fund are not subject to
1 31 section 8.33. Notwithstanding section 12C.7, interest or
1 32 earnings on moneys in the fund shall be credited to the fund.
1 33 Moneys in the fund are appropriated to the department for
1 34 airport engineering studies, construction, and improvements.
1 35 Sec. 3. Section 422.43, subsection 8, Code 2003, is
2 1 amended to read as follows:
2 2 8. a. All Except as provided in paragraph "b", all
2 3 revenues arising under the operation of the provisions of this
2 4 section shall become part of the state general fund of the
2 5 state.
2 6 b. Revenues generated from the tax imposed on the gross
2 7 receipts from the sale or rental of aircraft; the gross
2 8 receipts from the sale or rental of tangible personal property
2 9 permanently affixed or attached as a component part of the
2 10 aircraft, including but not limited to repair or replacement
2 11 materials or parts; and the gross receipts of all services
2 12 used for aircraft repair, remodeling, and maintenance services
2 13 when such services are performed on aircraft, aircraft
2 14 engines, or aircraft component materials or parts shall be
2 15 deposited as follows:
2 16 (1) For the fiscal year beginning July 1, 2004, one=third
2 17 of the revenues shall be deposited into the aviation
2 18 investment fund and the remaining revenues shall be deposited
2 19 into the general fund of the state.
2 20 (2) For the fiscal year beginning July 1, 2005, two=thirds
2 21 of the revenues shall be deposited into the aviation
2 22 investment fund and the remaining revenues shall be deposited
2 23 into the general fund of the state.
2 24 (3) For the fiscal year beginning July 1, 2006, and for
2 25 each fiscal year thereafter, the total amount of the revenues
2 26 shall be deposited into the aviation investment fund.
2 27 Sec. 4. Section 423.24, Code 2003, is amended by adding
2 28 the following new subsection:
2 29 NEW SUBSECTION. 2A. Revenues derived from the use tax on
2 30 aircraft; tangible personal property permanently affixed or
2 31 attached as a component part of the aircraft, including but
2 32 not limited to repair or replacement materials or parts; and
2 33 all services used for aircraft repair, remodeling, and
2 34 maintenance services when such services are performed on
2 35 aircraft, aircraft engines, or aircraft component materials or
3 1 parts shall be deposited as follows:
3 2 a. For the fiscal year beginning July 1, 2004, one=third
3 3 of the revenues shall be deposited into the aviation
3 4 investment fund and the remaining revenues shall be deposited
3 5 into the general fund of the state.
3 6 b. For the fiscal year beginning July 1, 2005, two=thirds
3 7 of the revenues shall be deposited into the aviation
3 8 investment fund and the remaining revenues shall be deposited
3 9 into the general fund of the state.
3 10 c. For the fiscal year beginning July 1, 2006, and for
3 11 each fiscal year thereafter, all such revenues shall be
3 12 deposited into the aviation investment fund.
3 13 Sec. 5. Section 452A.82, Code 2003, is amended to read as
3 14 follows:
3 15 452A.82 AVIATION FUEL TAX FUND.
3 16 The portion of the moneys collected under this chapter
3 17 received on account of aviation gasoline and special fuel used
3 18 in aircraft shall be deposited in a separate fund to be
3 19 maintained by the treasurer. All moneys remaining in the
3 20 separate fund after the cost of administering the fund has
3 21 been paid shall be credited to the general aviation investment
3 22 fund of the state created in section 328.36.
3 23 EXPLANATION
3 24 This bill creates an aviation investment fund within the
3 25 state treasury to be administered by the state department of
3 26 transportation. Moneys in the fund are appropriated to the
3 27 department for the purposes of airport engineering,
3 28 construction, and improvements.
3 29 The fund consists of aircraft registration fees and moneys
3 30 from the aviation fuel tax fund not used for the
3 31 administration of that fund. Beginning July 1, 2004, revenues
3 32 derived from sales and use taxes on aircraft and aircraft
3 33 parts are to be deposited into the aviation investment fund
3 34 according to a three=year phase=in schedule. Currently, all
3 35 aircraft registration fees, aviation fuel tax revenues, and
4 1 aircraft sales and use tax revenues are deposited into the
4 2 general fund of the state.
4 3 The bill also amends Code section 328.24 by requiring that
4 4 refunds of registration fees for aircraft that are destroyed,
4 5 dismantled, or moved out of state are paid from the aviation
4 6 investment fund, rather than from the general fund.
4 7 LSB 1038SS 80
4 8 dea/pj/5