House File 2097 - Introduced



                                       HOUSE FILE       
                                       BY  BOAL


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

                                      A BILL FOR

  1 An Act relating to the charges for paint and other vehicle
  2    refinish materials as retail sales under the sales and use
  3    taxes.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 5512YH 82
  6 mg/sc/5

PAG LIN



  1  1    Section 1.  Section 423.1, subsection 45, Code Supplement
  1  2 2007, is amended to read as follows:
  1  3    45.  "Retail sale" or "sale at retail" means any sale,
  1  4 lease, or rental for any purpose other than resale, sublease,
  1  5 or subrent.  "Retail sale" includes the separately stated
  1  6 charge made for automotive refinish repair paint and other
  1  7 refinish materials that are permanently applied to or affixed
  1  8 to a motor vehicle during its repair.
  1  9                           EXPLANATION
  1 10    This bill amends the definition of "retail sale" to include
  1 11 paint and materials that are applied to or affixed to a motor
  1 12 vehicle during its repair if the charge for each of these
  1 13 items is separately stated.  This would result in the purchase
  1 14 of these items by a motor vehicle repair shop exempt from the
  1 15 sales tax because they are considered purchased for resale.
  1 16 LSB 5512YH 82
  1 17 mg/sc/5