HF 2156 (LSB 5753YH (2) 83)

HOUSE FILE 2156

BY  D. OLSON

A BILL FOR

An Act relating to an exemption from the fee for new registration of a vehicle for vehicles used substantially in interstate commerce.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 321.105A, subsection 2, paragraph c, subparagraph (5), subparagraph division (c), Code Supplement 2009, is amended to read as follows:
   (c)  For the purposes of this subparagraph (5), if a vehicle meets the requirement that twenty-five percent of the miles operated accrues in states other than Iowa in each year of the first four-year period of operation, the exemption from the fee for new registration shall continue until the vehicle is sold or transferred. If the vehicle is found to have not met the exemption requirements or the exemption was revoked, the value of the vehicle upon which the fee for new registration shall be imposed is based on the original purchase price if revocation or nonqualification for this exemption occurs during the first year following registration. If revocation or nonqualification for this exemption occurs after the first year following registration, the value of the vehicle upon which the fee shall be imposed is the book or market value, whichever is less, at the time the exemption requirements were not met or the exemption was revoked.  Notwithstanding any other provision, when performing an audit for the purpose of verifying a vehicle’s qualification for the exemption under this subparagraph (5), the department shall consider only records from the three years of operation of the vehicle immediately preceding the year in which the audit is conducted.
EXPLANATION
   Under current law, vehicles registered or operated under proportional registration provisions and used substantially in interstate commerce are exempt from the fee for new registration, which was formerly imposed as the vehicle use tax. To qualify for the exemption, at least 25 percent of the vehicle’s operating miles must be accrued in states other than Iowa in each of the first four years of operation. This bill limits the length of time the owner of a vehicle is required to retain operating records to qualify for the exemption by limiting audits by the department of revenue to the consideration of records from the three years of operation immediately preceding the year in which an audit is conducted.