Senate File 2259 - Introduced
SENATE FILE
BY McCOY
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to an exemption from the sales tax for paint and
2 related supplies used by a motor vehicle repairer to refinish
3 a motor vehicle.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 5901XS 81
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PAG LIN
1 1 Section 1. Section 423.2, subsection 6, unnumbered
1 2 paragraph 1, Code Supplement 2005, is amended to read as
1 3 follows:
1 4 The sales price of any of the following enumerated services
1 5 is subject to the tax imposed by subsection 5: alteration and
1 6 garment repair; armored car; vehicle repair including paint
1 7 and other supplies used in the refinishing of a vehicle;
1 8 battery, tire, and allied; investment counseling; service
1 9 charges of all financial institutions; barber and beauty; boat
1 10 repair; vehicle wash and wax; campgrounds; carpentry; roof,
1 11 shingle, and glass repair; dance schools and dance studios;
1 12 dating services; dry cleaning, pressing, dyeing, and
1 13 laundering; electrical and electronic repair and installation;
1 14 excavating and grading; farm implement repair of all kinds;
1 15 flying service; furniture, rug, carpet, and upholstery repair
1 16 and cleaning; fur storage and repair; golf and country clubs
1 17 and all commercial recreation; gun and camera repair; house
1 18 and building moving; household appliance, television, and
1 19 radio repair; janitorial and building maintenance or cleaning;
1 20 jewelry and watch repair; lawn care, landscaping, and tree
1 21 trimming and removal; limousine service, including driver;
1 22 machine operator; machine repair of all kinds; motor repair;
1 23 motorcycle, scooter, and bicycle repair; oilers and
1 24 lubricators; office and business machine repair; painting,
1 25 papering, and interior decorating; parking facilities; pay
1 26 television; pet grooming; pipe fitting and plumbing; wood
1 27 preparation; executive search agencies; private employment
1 28 agencies, excluding services for placing a person in
1 29 employment where the principal place of employment of that
1 30 person is to be located outside of the state; reflexology;
1 31 security and detective services; sewage services for
1 32 nonresidential commercial operations; sewing and stitching;
1 33 shoe repair and shoeshine; sign construction and installation;
1 34 storage of household goods, mini=storage, and warehousing of
1 35 raw agricultural products; swimming pool cleaning and
2 1 maintenance; tanning beds or salons; taxidermy services;
2 2 telephone answering service; test laboratories, including
2 3 mobile testing laboratories and field testing by testing
2 4 laboratories, and excluding tests on humans or animals;
2 5 termite, bug, roach, and pest eradicators; tin and sheet metal
2 6 repair; transportation service consisting of the rental of
2 7 recreational vehicles or recreational boats, or the rental of
2 8 motor vehicles subject to registration which are registered
2 9 for a gross weight of thirteen tons or less for a period of
2 10 sixty days or less, or the rental of aircraft for a period of
2 11 sixty days or less; Turkish baths, massage, and reducing
2 12 salons, excluding services provided by massage therapists
2 13 licensed under chapter 152C; water conditioning and softening;
2 14 weighing; welding; well drilling; wrapping, packing, and
2 15 packaging of merchandise other than processed meat, fish,
2 16 fowl, and vegetables; wrecking service; wrecker and towing.
2 17 Sec. 2. Section 423.3, Code Supplement 2005, is amended by
2 18 adding the following new subsection:
2 19 NEW SUBSECTION. 89. The sales price from the sale of
2 20 paint and other refinishing supplies to a refinisher of motor
2 21 vehicles to be used in the repair of a motor vehicle, which
2 22 service is subject to tax under section 423.2, subsection 6.
2 23 For purposes of this subsection, the motor vehicle refinisher
2 24 shall separately list the paint and refinishing supplies that
2 25 are used to refinish the motor vehicle and are subject to tax.
2 26 EXPLANATION
2 27 Under present sales tax law, a person that purchases paint
2 28 and other refinishing supplies to be used in motor vehicle
2 29 repair is considered the consumer of such paint and supplies
2 30 and must pay the sales tax on the purchase of these items.
2 31 The repair of a motor vehicle is subject to the sales tax.
2 32 This bill exempts the refinisher from paying the tax and
2 33 requires that the tax on the paint and refinishing supplies be
2 34 paid by the motor vehicle owner.
2 35 LSB 5901XS 81
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