House File 171 - Introduced



                                       HOUSE FILE       
                                       BY  WORTHAN


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

                                      A BILL FOR

  1 An Act providing an exemption from the fee for new registration
  2    for a leased vehicle purchased by the lessee for immediate
  3    resale.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 1763YH 83
  6 dea/nh/8

PAG LIN



  1  1    Section 1.  Section 321.105A, subsection 2, paragraph c,
  1  2 Code 2009, is amended by adding the following new
  1  3 subparagraph:
  1  4    NEW SUBPARAGRAPH.  (31)  A vehicle purchased by the lessee
  1  5 upon termination or expiration of the lease, if the lessee
  1  6 purchases the vehicle for resale to a third party, the lessee
  1  7 does not apply for a new registration for the vehicle, and the
  1  8 lessee completes the resale transaction and transfers the
  1  9 title to the third party within forty=eight hours of acquiring
  1 10 title from the lessor.
  1 11                           EXPLANATION
  1 12    This bill provides an exemption from the fee for new
  1 13 registration which is due whenever application is made for a
  1 14 new registration and certificate of title for a vehicle.  The
  1 15 exemption applies for a lessee who purchases the leased
  1 16 vehicle from a dealer with the intention of immediately
  1 17 selling the vehicle to another individual, provided the lessee
  1 18 does not register the vehicle and the resale transaction and
  1 19 transfer of title occur within 48 hours of acquiring title
  1 20 from the dealer.
  1 21    The fee for new registration, modeled after the former
  1 22 vehicle use tax, amounts to 5 percent of the purchase price of
  1 23 a vehicle.  Licensed vehicle dealers are required to collect
  1 24 the fee on behalf of the state at the time of making a sale.
  1 25 The bill would relieve the dealer from the requirement to
  1 26 collect the fee when a leased vehicle is sold to the lessor
  1 27 for immediate resale.
  1 28 LSB 1763YH 83
  1 29 dea/nh/8.1