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 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 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