Senate Study Bill 1210 



                                       SENATE FILE       
                                       BY  (PROPOSED COMMITTEE ON
                                            WAYS AND MEANS BILL BY
                                            CHAIRPERSON BOLKCOM)


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

                                      A BILL FOR

  1 An Act providing a sales tax exemption from the sale of certain
  2    automotive paints and materials to retailers to be used for
  3    motor vehicle collision repairs.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 1985SC 83
  6 ak/mg:sc/8

PAG LIN



  1  1    Section 1.  Section 423.3, Code 2009, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  40A.  The sales price from the sale of
  1  4 automotive refinish repair paint and other vehicle body
  1  5 materials to a retailer to be used in providing a service that
  1  6 is subject to section 423.2, subsection 6, if the service
  1  7 provided includes the permanent application or use of the
  1  8 paint and materials during a motor vehicle collision repair.
  1  9                           EXPLANATION
  1 10    This bill provides a state sales tax exemption for the
  1 11 sales of automotive refinish repair paint and other vehicle
  1 12 body materials to a retailer who will use the paint and
  1 13 materials to provide a service that includes the permanent
  1 14 application or consumption of the paint and materials for the
  1 15 repair of a motor vehicle collision.  The bill requires that
  1 16 in order to qualify for the exemption, the retailer's services
  1 17 must be subject to Code section 423.2, subsection 6, which
  1 18 requires the retailer to charge sales tax on the automotive
  1 19 services the retailer provides.
  1 20 LSB 1985SC 83
  1 21 ak/mg:sc/8