House File 2374 - Introduced
HOUSE FILE
BY PAULSEN
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act exempting the sale of truck bodies and their mounting on
2 empty truck chassis from the local option sales and services
3 taxes.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 6365YH 81
6 mg/je/5
PAG LIN
1 1 Section 1. Section 423B.5, unnumbered paragraph 1, Code
1 2 Supplement 2005, is amended to read as follows:
1 3 A local sales and services tax at the rate of not more than
1 4 one percent may be imposed by a county on the sales price
1 5 taxed by the state under chapter 423, subchapter II. A local
1 6 sales and services tax shall be imposed on the same basis as
1 7 the state sales and services tax or in the case of the use of
1 8 natural gas, natural gas service, electricity, or electric
1 9 service on the same basis as the state use tax and shall not
1 10 be imposed on the sale of any property or on any service not
1 11 taxed by the state, except the tax shall not be imposed on the
1 12 sales price from the sale of motor fuel or special fuel as
1 13 defined in chapter 452A which is consumed for highway use or
1 14 in watercraft or aircraft if the fuel tax is paid on the
1 15 transaction and a refund has not or will not be allowed, on
1 16 the sales price from the sale of equipment by the state
1 17 department of transportation, and on the sales price of a
1 18 truck body and its mounting onto an empty truck chassis, and
1 19 except the tax shall not be imposed on the sales price from
1 20 the sale or use of natural gas, natural gas service,
1 21 electricity, or electric service in a city or county where the
1 22 sales price from the sale of natural gas or electric energy is
1 23 subject to a franchise fee or user fee during the period the
1 24 franchise or user fee is imposed. A local sales and services
1 25 tax is applicable to transactions within those incorporated
1 26 and unincorporated areas of the county where it is imposed and
1 27 shall be collected by all persons required to collect state
1 28 sales taxes. All cities contiguous to each other shall be
1 29 treated as part of one incorporated area and the tax would be
1 30 imposed in each of those contiguous cities only if the
1 31 majority of those voting in the total area covered by the
1 32 contiguous cities favors its imposition.
1 33 Sec. 2. Section 423E.3, subsection 2, Code Supplement
1 34 2005, is amended to read as follows:
1 35 2. The tax shall be imposed on the same basis as the state
2 1 sales and services tax or in the case of the use of natural
2 2 gas, natural gas service, electricity, or electric service on
2 3 the same basis as the state use tax and shall not be imposed
2 4 on the sale of any property or on any service not taxed by the
2 5 state, except the tax shall not be imposed on the sales price
2 6 from the sale of motor fuel or special fuel as defined in
2 7 chapter 452A which is consumed for highway use or in
2 8 watercraft or aircraft if the fuel tax is paid on the
2 9 transaction and a refund has not or will not be allowed, on
2 10 the sales price from the sale of equipment by the state
2 11 department of transportation, and on the sales price of a
2 12 truck body and its mounting onto an empty truck chassis, and
2 13 except the tax shall not be imposed on the sales price from
2 14 the sale or use of natural gas, natural gas service,
2 15 electricity, or electric service in a city or county where the
2 16 sales price from the sale of natural gas or electric energy is
2 17 subject to a franchise fee or user fee during the period the
2 18 franchise or user fee is imposed.
2 19 EXPLANATION
2 20 This bill exempts from the local option sales and services
2 21 tax and the sales and services tax for school infrastructure
2 22 purposes the sales price of a truck body and its mounting onto
2 23 an empty truck chassis.
2 24 LSB 6365YH 81
2 25 mg:rj/je/5