Senate File 116 - Introduced





                                       SENATE FILE       
                                       BY  BEALL


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

                                      A BILL FOR

  1 An Act providing that the casual sales exemption under the state
  2    sales tax does not apply to the sales of all=terrain vehicles,
  3    snowmobiles, off=road motorcycles, and off=road utility
  4    vehicles.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  6 TLSB 2103SS 83
  7 ak/mg:sc/8

PAG LIN



  1  1    Section 1.  Section 423.3, subsection 39, Code 2009, is
  1  2 amended to read as follows:
  1  3    39.  The sales price from "casual sales".
  1  4    a.  "Casual sales" means:
  1  5    a. (1)  Sales of tangible personal property, or the
  1  6 furnishing of services, of a nonrecurring nature, by the
  1  7 owner, if the seller, at the time of the sale, is not engaged
  1  8 for profit in the business of selling tangible personal
  1  9 property or services taxed under section 423.2.
  1 10    b. (2)  The sale of all or substantially all of the
  1 11 tangible personal property or services held or used by a
  1 12 seller in the course of the seller's trade or business for
  1 13 which the seller is required to hold a sales tax permit when
  1 14 the seller sells or otherwise transfers the trade or business
  1 15 to another person who shall engage in a similar trade or
  1 16 business.
  1 17    c. (3)  Notwithstanding paragraph "a" subparagraph (1), the
  1 18 sale, furnishing, or performance of a service that is of a
  1 19 recurring nature by the owner if, at the time of the sale, all
  1 20 of the following apply:
  1 21    (1) (a)  The seller is not engaged for profit in the
  1 22 business of the selling, furnishing, or performance of
  1 23 services taxed under section 423.2.  For purposes of this
  1 24 subparagraph, the fact of the recurring nature of selling,
  1 25 furnishing, or performance of services does not constitute by
  1 26 itself engaging for profit in the business of selling,
  1 27 furnishing, or performance of services.
  1 28    (2) (b)  The owner of the business is the only person
  1 29 performing the service.
  1 30    (3) (c)  The owner of the business is a full=time student.
  1 31    (4) (d)  The total gross receipts from the sales,
  1 32 furnishing, or performance of services during the calendar
  1 33 year does not exceed five thousand dollars.
  1 34    b.  The exemption under this subsection does not apply to
  1 35 vehicles subject to registration, all=terrain vehicles,
  2  1 snowmobiles, off=road motorcycles, off=road utility vehicles,
  2  2 aircraft, or commercial or pleasure watercraft or water
  2  3 vessels.
  2  4                           EXPLANATION
  2  5    This bill restricts the sales tax exemption for casual
  2  6 sales so that the casual sales of all=terrain vehicles,
  2  7 snowmobiles, off=road motorcycles, and off=road utility
  2  8 vehicles are not exempt from the state sales tax.  Current law
  2  9 exempts such sales from state sales tax.
  2 10 LSB 2103SS 83
  2 11 ak/mg:sc/8