Senate File 196 - Introduced



                                       SENATE FILE       
                                       BY  HOGG


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

                                      A BILL FOR

  1 An Act providing for a use tax refund for certain fuel=efficient
  2    motor vehicles, and making an appropriation.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 1948SS 82
  5 rn/cf/24

PAG LIN



  1  1    Section 1.  NEW SECTION.  423.6A  FUEL=EFFICIENT MOTOR
  1  2 VEHICLES == REFUND.
  1  3    1.  A person who purchases a new motor vehicle on or after
  1  4 July 1, 2007, may apply to the department for a refund of a
  1  5 portion of the amount of use tax imposed and paid at the time
  1  6 of purchase of the new motor vehicle by the applicant in the
  1  7 amount issued on a tax refund certificate issued pursuant to
  1  8 section 473.46.
  1  9    2.  The refund may be obtained only in the following manner
  1 10 and under the following conditions:
  1 11    a.  On a form furnished by the department and filed by
  1 12 April 30 after the end of the calendar year in which the tax
  1 13 refund is to be applied, the applicant shall report to the
  1 14 department the total amount of use tax paid for the new motor
  1 15 vehicle on which the use tax refund certificate was issued
  1 16 pursuant to section 473.46.
  1 17    b.  If required by the department, the applicant shall
  1 18 prove that the person making the sale has included the amount
  1 19 of the sale in the computation of the sales price and that
  1 20 such person has paid the use tax levied under section 423.5
  1 21 based upon such computation of the sales price.
  1 22    c.  The applicant shall provide the use tax refund
  1 23 certificate issued pursuant to section 473.46 to the
  1 24 department with the form required by paragraph "a".
  1 25    3.  If satisfied that the foregoing conditions and
  1 26 requirements have been complied with, the department shall
  1 27 refund the amount claimed by the applicant for an amount not
  1 28 greater than the amount of the use tax refund issued in the
  1 29 use tax refund certificate pursuant to section 473.46.  The
  1 30 department shall not issue refunds for an amount greater than
  1 31 the amount appropriated under or available for the refunds in
  1 32 section 423.6B.  An application for a refund under this
  1 33 section received after the amount of appropriated funds under
  1 34 section 423.6B has been expended shall be held by the
  1 35 department until the following fiscal year, at which time the
  2  1 department shall reconsider the application.
  2  2    Sec. 2.  NEW SECTION.  423.6B  APPROPRIATION FOR FUEL=
  2  3 EFFICIENT MOTOR VEHICLE REFUND.
  2  4    There is appropriated from the general fund of the state
  2  5 each fiscal year for the fiscal period beginning July 1, 2007,
  2  6 and ending June 30, 2012, to the department of revenue the sum
  2  7 of five million dollars to be used for fuel=efficient motor
  2  8 vehicle use tax refunds established under section 423.6A.
  2  9 Amounts appropriated pursuant to this section shall be in
  2 10 addition to, and shall not replace, funds otherwise
  2 11 appropriated to the department of revenue.  Notwithstanding
  2 12 section 8.33, moneys appropriated in this section that remain
  2 13 unencumbered or unobligated at the close of each fiscal year
  2 14 shall not revert but shall remain available for expenditure
  2 15 for the purposes designated.
  2 16    This section is repealed June 30, 2012.
  2 17    Sec. 3.  NEW SECTION.  473.46  FUEL=EFFICIENT MOTOR
  2 18 VEHICLES TAX REFUND == CERTIFICATE.
  2 19    1.  A person who has purchased a new motor vehicle from a
  2 20 new motor vehicle dealer in this state on or after July 1,
  2 21 2007, may apply to the department for a use tax refund
  2 22 certificate to be used to apply for a use tax refund pursuant
  2 23 to section 423.6A.  If approved by the department, the amount
  2 24 of the use tax refund certificate shall equal ten dollars for
  2 25 each mile per gallon that the motor vehicle's highway gasoline
  2 26 mileage rating averaged, for city and highway driving as
  2 27 estimated by the United States environmental protection
  2 28 agency, above twenty=seven and one=half miles per gallon.  A
  2 29 use tax refund certificate shall not be issued for an amount
  2 30 less than twenty=five dollars.
  2 31    2.  To apply, the person shall submit a completed
  2 32 application to the department containing all of the following
  2 33 information:
  2 34    a.  A copy of the motor vehicle dealer invoice for the
  2 35 motor vehicle.
  3  1    b.  A copy of a valid Iowa vehicle registration for the
  3  2 motor vehicle.  The name appearing on the vehicle registration
  3  3 shall be the same name as the name of the purchaser on the
  3  4 dealer invoice.
  3  5    c.  Proof of the vehicle purchase, which may include but is
  3  6 not limited to a copy of the front and back of a canceled
  3  7 check, the finance agreement, or a dealer invoice indicating a
  3  8 zero balance due and receipt of payment in full.
  3  9    d.  Any other information the department may require.
  3 10    3.  If upon receipt of the completed application the
  3 11 department finds that the person is qualified for a use tax
  3 12 refund pursuant to section 423.6A and this section, the
  3 13 department shall calculate the amount of the use tax refund
  3 14 for which the person is eligible and shall issue a use tax
  3 15 refund certificate to the person or notify the person in
  3 16 writing of its refusal to do so.  A person whose application
  3 17 is denied may file an appeal with the department within sixty
  3 18 days from the date of denial pursuant to the provisions of
  3 19 chapter 17A.
  3 20    4.  For the purposes of this section, "motor vehicle" means
  3 21 the same as defined in section 321.1 but shall not include a
  3 22 motorcycle, motorized bicycle, snowmobile, or all=terrain
  3 23 vehicle.
  3 24    5.  Once a use tax refund certificate is issued pursuant to
  3 25 this section, the person may apply to the department of
  3 26 revenue for the use tax refund pursuant to section 423.6A.
  3 27                           EXPLANATION
  3 28    This bill provides for a use tax refund for certain
  3 29 fuel=efficient motor vehicles whose combined gasoline mileage
  3 30 rating exceeds 27 and one=half miles per gallon.  The amount
  3 31 of the credit shall be either $10 for each mile per gallon
  3 32 above 27 and one=half or $25, whichever is greater.  The use
  3 33 tax refund certification procedure shall be administered by
  3 34 the department of natural resources.  An amount equal to $5
  3 35 million per fiscal year for five fiscal years is appropriated
  4  1 to the department of revenue to issue the use tax refunds.
  4  2 LSB 1948SS 82
  4  3 rn:rj/cf/24.1