Senate File 321 - Introduced



                                       SENATE FILE       
                                       BY  BOETTGER


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

                                      A BILL FOR

  1 An Act relating to the sales tax exemption for farm machinery and
  2    equipment used in agricultural production.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 2258XS 82
  5 dea/gg/14

PAG LIN



  1  1    Section 1.  Section 423.3, subsection 8, paragraph a, Code
  1  2 2007, is amended to read as follows:
  1  3    a.  The farm machinery and equipment shall be directly and
  1  4 primarily used in production of agricultural products,
  1  5 including any of the following activities:
  1  6    (1)  Coming into actual physical contact with the soil or
  1  7 crops during planting, cultivating, harvesting, or soil
  1  8 preparation.
  1  9    (2)  Inspection or repair of fences.
  1 10    (3)  Livestock monitoring.
  1 11    (4)  Viewing or inspection of crops.
  1 12                           EXPLANATION
  1 13    This bill provides, for purposes of state and local sales
  1 14 taxes, that inspection and repair of fences, livestock
  1 15 monitoring, and viewing and inspection of crops are activities
  1 16 related to production of agricultural products.  The sales
  1 17 price of farm machinery and equipment used in production of
  1 18 agricultural products is exempt from state and local sales
  1 19 tax.
  1 20 LSB 2258XS 82
  1 21 dea:rj/gg/14