Senate File 2187 - Introduced



                                       SENATE FILE       
                                       BY  KETTERING


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

                                      A BILL FOR

  1 An Act relating to the taxation of casual sales of vehicles,
  2    aircraft, and watercraft under the state sales tax, providing
  3    refunds, and including effective and retroactive applicability
  4    date provisions.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  6 TLSB 5779XS 81
  7 mg/cf/24

PAG LIN



  1  1    Section 1.  Section 423.3, subsection 39, Code Supplement
  1  2 2005, is amended to read as follows:
  1  3    39.  The sales price from "casual sales".
  1  4    "Casual sales" means:
  1  5    a.  Sales of tangible personal property, or the furnishing
  1  6 of services, of a nonrecurring nature, by the owner, if the
  1  7 seller, at the time of the sale, is not engaged for profit in
  1  8 the business of selling tangible personal property or services
  1  9 taxed under section 423.2.
  1 10    b.  The sale of all or substantially all of the tangible
  1 11 personal property or services held or used by a seller in the
  1 12 course of the seller's trade or business for which the seller
  1 13 is required to hold a sales tax permit when the seller sells
  1 14 or otherwise transfers the trade or business to another person
  1 15 who shall engage in a similar trade or business.
  1 16    The exemption under this subsection does not apply to
  1 17 vehicles subject to registration, aircraft, or commercial or
  1 18 pleasure watercraft or water vessels.
  1 19    Sec. 2.  REFUNDS.  Refunds of taxes, interest, or penalties
  1 20 which arise from claims resulting from the amendment to
  1 21 section 423.3, subsection 39, in this Act, for the casual sale
  1 22 of vehicles subject to registration, aircraft, or commercial
  1 23 or pleasure watercraft or water vessels occurring between July
  1 24 1, 2005, and the effective date of the section amending
  1 25 section 423.3, subsection 39, in this Act, shall be limited to
  1 26 twenty=five thousand dollars in the aggregate and shall not be
  1 27 allowed unless refund claims are filed prior to October 1,
  1 28 2006, notwithstanding any other provision of law.  If the
  1 29 amount of claims totals more than twenty=five thousand dollars
  1 30 in the aggregate, the department of revenue shall prorate the
  1 31 twenty=five thousand dollars among all claimants in relation
  1 32 to the amounts of the claimants' valid claims.
  1 33    Sec. 3.  EFFECTIVE AND RETROACTIVE APPLICABILITY DATES.
  1 34 This Act, being deemed of immediate importance, takes effect
  1 35 upon enactment and applies retroactively to July 1, 2005.
  2  1                           EXPLANATION
  2  2    Current sales tax law provides for an exemption for casual
  2  3 sales.  In the 2005 Session a provision was enacted that
  2  4 provided that the exemption for casual sales did not apply to
  2  5 sales of vehicles subject to registration, aircraft, and
  2  6 commercial or pleasure watercraft or water vessels.  This
  2  7 provision took effect July 1, 2005.  This bill strikes that
  2  8 new provision and makes the strike retroactive to July 1,
  2  9 2005.  The bill also limits, to $25,000, the amount of refunds
  2 10 as a result of the retroactive applicability date.
  2 11    The bill takes effect upon enactment and applies
  2 12 retroactively to July 1, 2005.
  2 13 LSB 5779XS 81
  2 14 mg:rj/cf/24