House File 2156 - Introduced HOUSE FILE 2156 BY D. OLSON A BILL FOR An Act relating to an exemption from the fee for new 1 registration of a vehicle for vehicles used substantially in 2 interstate commerce. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5753YH (2) 83 dea/nh

H.F. 2156 Section 1. Section 321.105A, subsection 2, paragraph c, 1 subparagraph (5), subparagraph division (c), Code Supplement 2 2009, is amended to read as follows: 3 (c) For the purposes of this subparagraph (5), if a vehicle 4 meets the requirement that twenty-five percent of the miles 5 operated accrues in states other than Iowa in each year of the 6 first four-year period of operation, the exemption from the 7 fee for new registration shall continue until the vehicle is 8 sold or transferred. If the vehicle is found to have not met 9 the exemption requirements or the exemption was revoked, the 10 value of the vehicle upon which the fee for new registration 11 shall be imposed is based on the original purchase price if 12 revocation or nonqualification for this exemption occurs 13 during the first year following registration. If revocation 14 or nonqualification for this exemption occurs after the first 15 year following registration, the value of the vehicle upon 16 which the fee shall be imposed is the book or market value, 17 whichever is less, at the time the exemption requirements were 18 not met or the exemption was revoked. Notwithstanding any 19 other provision, when performing an audit for the purpose of 20 verifying a vehicle’s qualification for the exemption under 21 this subparagraph (5), the department shall consider only 22 records from the three years of operation of the vehicle 23 immediately preceding the year in which the audit is conducted. 24 EXPLANATION 25 Under current law, vehicles registered or operated under 26 proportional registration provisions and used substantially 27 in interstate commerce are exempt from the fee for new 28 registration, which was formerly imposed as the vehicle 29 use tax. To qualify for the exemption, at least 25 percent 30 of the vehicle’s operating miles must be accrued in states 31 other than Iowa in each of the first four years of operation. 32 This bill limits the length of time the owner of a vehicle 33 is required to retain operating records to qualify for the 34 exemption by limiting audits by the department of revenue to 35 -1- LSB 5753YH (2) 83 dea/nh 1/ 2

H.F. 2156 the consideration of records from the three years of operation 1 immediately preceding the year in which an audit is conducted. 2 -2- LSB 5753YH (2) 83 dea/nh 2/ 2