House File 251 - Introduced 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 increase in the automobile rental excise 2 tax and appropriating the increased tax revenues and including 3 an applicability date provision. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1639HH 81 6 mg/pj/5 PAG LIN 1 1 Section 1. Section 423C.3, subsection 1, Code 2005, is 1 2 amended to read as follows: 1 3 1. A tax offivesix 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 423, subchapter II, 1 6 or the use tax under chapter 423, subchapter III. The tax 1 7 shall not be imposed on any rental transaction not taxable 1 8 under the state sales and services tax, as provided in section 1 9 423.3, or the state use tax, as provided in section 423.6, on 1 10 automobile rental receipts. 1 11 Sec. 2. Section 423C.5, Code 2005, is amended by striking 1 12 the section and inserting in lieu thereof the following: 1 13 423C.5 DEPOSIT OF REVENUE == APPROPRIATIONS. 1 14 1. The revenue arising from the operation of this chapter 1 15 shall be credited as follows: 1 16 a. Five=sixths of the revenues shall be credited to the 1 17 road use tax fund. 1 18 b. One=sixth of the revenues shall be credited to a 1 19 special account in the state treasury under the control of the 1 20 department of economic development. 1 21 2. The moneys credited to the special account pursuant to 1 22 subsection 1, paragraph "b", are appropriated to the 1 23 department of economic development for use by the department 1 24 for tourism marketing purposes. 1 25 Sec. 3. APPLICABILITY DATE. This Act applies to rental 1 26 transactions occurring on or after July 1, 2005. 1 27 EXPLANATION 1 28 This bill increases from 5 percent to 6 percent the excise 1 29 tax on the rental of automobiles for periods of 60 days or 1 30 less and appropriates the increased revenues to the department 1 31 of economic development for purposes of tourism marketing. 1 32 The bill applies to rental transactions occurring on or 1 33 after July 1, 2005. 1 34 LSB 1639HH 81 1 35 mg:nh/pj/5