Senate File 2376 - Introduced



                                       SENATE FILE       
                                       BY  ZIEMAN


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

                                      A BILL FOR

  1 An Act exempting from the sales and use taxes certain materials
  2    used by body shops in furnishing vehicle repair services.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 5247XS 82
  5 mg/sc/5

PAG LIN



  1  1    Section 1.  Section 423.3, Code Supplement 2007, is amended
  1  2 by adding the following new subsection:
  1  3    NEW SUBSECTION.  40A.  The sales price from the sale of
  1  4 materials to body shops or garages with body shops which are
  1  5 used in the furnishing of vehicle repair services, which
  1  6 services are subject to section 423.2, subsection 6.  For
  1  7 purposes of this exemption, "materials" includes abrasives;
  1  8 accessories; battery water; body filler or putty; body lead;
  1  9 bolts, nuts, and washers; brake fluid; buffing pads; chamois;
  1 10 cleaning compounds; degreasing compounds; floor dry; hydraulic
  1 11 jack oil; lubricants; masking tape; paint; polishes; rags;
  1 12 rivets and cotter pins; sandpaper; sanding discs; scuff pads;
  1 13 sealer and primer; sheet metal; solder; solvents; spark plug
  1 14 sand; striping tape; thinner; upholstery tacks; waxes; white
  1 15 sidewall cleaner; and other items identified by rule of the
  1 16 department.
  1 17                           EXPLANATION
  1 18    This bill exempts materials purchased by body shops which
  1 19 are used in furnishing taxable vehicle repair services.  The
  1 20 bill defines "materials" and includes in the definition other
  1 21 items identified by rule of the department of revenue.
  1 22 LSB 5247XS 82
  1 23 mg/sc/5