S.F. _____ Section 1. Section 103A.55, subsection 1, Code 2009, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . g. Failing to comply with the requirements 3 of section 423.26A relating to the collection of use tax. 4 Sec. 2. Section 312.1, subsection 1, paragraph d, Code 2009, 5 is amended to read as follows: 6 d. Revenue derived from the use tax collected under 7 section sections 423.26 and 423.26A , to the extent provided 8 under section 321.145, subsection 2. 9 Sec. 3. Section 321.20, subsection 1, paragraph e, Code 10 2009, is amended to read as follows: 11 e. The amount of the fee for new registration to be paid 12 under section 321.105A , or the amount of tax to be paid under 13 section 423.26, subsection 1 , or the amount of tax to be paid 14 under section 423.26A . 15 Sec. 4. Section 331.557, subsection 3, Code 2009, is amended 16 to read as follows: 17 3. Collect and forward the use tax on vehicles subject 18 only to a certificate of title and on manufactured housing as 19 provided in section 423.14 , and section 423.26, subsection 1 , 20 and section 423.26A . 21 Sec. 5. Section 423.14, subsection 2, paragraph a, Code 22 2009, is amended to read as follows: 23 a. The tax upon the use of all vehicles subject only to the 24 issuance of a certificate of title or the tax upon the use of 25 manufactured housing shall be collected by the county treasurer 26 or the state department of transportation pursuant to section 27 423.26, subsection 1. The county treasurer shall retain one 28 dollar from each tax payment collected, to be credited to the 29 county general fund. 30 Sec. 6. Section 423.16, subsection 1, Code 2009, is amended 31 to read as follows: 32 1. The retail sale or transfer of watercraft, modular 33 homes, manufactured housing, or mobile homes, and the retail 34 sale, excluding lease or rental, of motor vehicles, trailers, 35 -1- LSB 5648SC (5) 83 md/sc 1/ 5

S.F. _____ semitrailers, or aircraft that do not qualify as transportation 1 equipment, as defined in section 423.15, subsection 3. 2 Sec. 7. Section 423.26, subsection 1, paragraph a, Code 3 2009, is amended to read as follows: 4 a. The use tax imposed upon the use of vehicles subject 5 only to the issuance of a certificate of title or imposed upon 6 the use of manufactured housing shall be paid by the owner 7 of the vehicle or of the manufactured housing to the county 8 treasurer or the state department of transportation from whom 9 the certificate of title is obtained. A certificate of title 10 shall not be issued until the tax has been paid. The county 11 treasurer or the state department of transportation shall 12 require every applicant for a certificate of title to supply 13 information as the county treasurer or the director deems 14 necessary as to the time of purchase, the purchase price, 15 installed purchase price, and other information relative to the 16 purchase of the vehicle or manufactured housing . On or before 17 the tenth day of each month, the county treasurer or the state 18 department of transportation shall remit to the department the 19 amount of the taxes collected during the preceding month. 20 Sec. 8. NEW SECTION . 423.26A Manufactured housing —— 21 collection of use tax —— certificate of title. 22 1. Except as provided in subsection 3, the use tax imposed 23 upon the use of manufactured housing shall be paid by the owner 24 of the manufactured housing to the manufactured home retailer 25 licensed under chapter 103A. The owner of the manufactured 26 housing shall also provide to the manufactured home retailer 27 all information necessary to complete and submit an application 28 for a certificate of title. 29 2. Use tax collected by the manufactured home retailer shall 30 be forwarded to the county treasurer or the state department of 31 transportation. The county treasurer shall retain one dollar 32 from each tax payment collected by a manufactured home retailer 33 and paid to the county treasurer, to be credited to the county 34 general fund. The manufactured home retailer shall submit an 35 -2- LSB 5648SC (5) 83 md/sc 2/ 5

S.F. _____ application for certificate of title on behalf of the owner of 1 the manufactured housing. 2 3. The use tax imposed upon the use of manufactured housing 3 brought into the state of Iowa which has not previously been 4 subject to the tax imposed under this subchapter and for which 5 that tax has not been paid, shall be paid by the owner of the 6 manufactured housing to the county treasurer or the state 7 department of transportation from whom the certificate of title 8 is obtained. The owner of the manufactured housing shall 9 submit an application for a certificate of title. Section 10 423.22 shall apply in the case where the owner has paid tax in 11 another state. 12 4. The county treasurer or the state department of 13 transportation shall require every application for a 14 certificate of title to include information as the county 15 treasurer or the director deems necessary as to the time of 16 purchase, the purchase price, installed purchase price, and 17 other information relative to the purchase of the manufactured 18 housing. 19 5. A certificate of title shall not be issued until the tax 20 has been paid. A certificate of title shall be delivered to 21 the owner of the manufactured housing by the county treasurer 22 or state department of transportation who received the use tax. 23 6. On or before the tenth day of each month, the county 24 treasurer or the state department of transportation shall remit 25 to the department the amount of the taxes collected during the 26 preceding month. 27 7. A person who willfully makes a false statement in regard 28 to taxation under this section is guilty of a fraudulent 29 practice. A person who willfully makes a false statement in 30 regard to taxation under this section with the intent to evade 31 the payment of tax shall be assessed a penalty of seventy-five 32 percent of the amount of tax unpaid and required to be paid. 33 Sec. 9. Section 423.36, subsection 8, paragraph b, 34 subparagraph (2), Code 2009, is amended to read as follows: 35 -3- LSB 5648SC (5) 83 md/sc 3/ 5

S.F. _____ (2) Taxes imposed under section 423.26 , section 1 423.26A, and chapter 423C. 2 Sec. 10. Section 423.43, subsection 2, Code 2009, is amended 3 to read as follows: 4 2. All revenue derived from the use tax imposed pursuant 5 to section sections 423.26 and 423.26A shall be credited to 6 the statutory allocations fund created under section 321.145, 7 subsection 2. 8 EXPLANATION 9 Current Code section 423.26 requires the use tax imposed 10 upon the use of vehicles subject only to the issuance of a 11 certificate of title or imposed upon the use of manufactured 12 housing to be paid by the owner of the vehicle or of the 13 manufactured housing to the county treasurer or the department 14 of transportation. 15 This bill removes manufactured housing from Code section 16 423.26 and enacts a new Code section 423.26A relating to the 17 collection of the use tax on manufactured housing. The bill 18 requires the use tax imposed upon the use of manufactured 19 housing to be paid by the owner of the manufactured housing 20 to the manufactured home retailer licensed under Code chapter 21 103A. The bill requires the manufactured home retailer to 22 submit an application for certificate of title on behalf 23 of the owner of the manufactured housing. To facilitate 24 this application, the bill requires the owner to provide to 25 the manufactured home retailer all information necessary to 26 submit an application for a certificate of title. The bill 27 requires, however, that the use tax imposed on manufactured 28 housing brought in the state be paid by the owner to the 29 county treasurer or the state department of transportation. 30 In such cases, the owner is also responsible for submitting 31 the application for the certificate of title. The bill also 32 makes Code section 423.22 applicable to manufactured housing 33 brought into the state and for which the owner has paid taxes 34 in another state. 35 -4- LSB 5648SC (5) 83 md/sc 4/ 5

S.F. _____ Under the bill, use tax collected by the manufactured home 1 retailer must be forwarded to the county treasurer or the state 2 department of transportation from whom the certificate of title 3 is obtained. The county treasurer is authorized to retain one 4 dollar from each tax payment collected by a manufactured home 5 retailer and paid to the county treasurer. The bill provides 6 that on or before the tenth day of each month, the county 7 treasurer and the department of transportation must remit to 8 the department of revenue the amount of the taxes collected 9 during the preceding month. 10 The bill provides that all revenue derived from the use 11 tax imposed pursuant to new Code section 423.26A is credited 12 to the statutory allocations fund created under Code section 13 321.145, subsection 2, under the control of the department of 14 transportation. 15 The bill provides that a person who willfully makes a false 16 statement in regard to taxation under new Code section 423.26A 17 is guilty of a fraudulent practice under Code chapter 714. The 18 bill also provides that a person who willfully makes a false 19 statement in regard to taxation under this section with the 20 intent to evade the payment of tax is assessed a penalty of 75 21 percent of the amount of tax unpaid and required to be paid. 22 The bill also includes the failure to comply with the 23 requirements of new Code section 423.26A as grounds for the 24 revocation, suspension, or refusal of a manufactured home 25 retailer license under Code section 103A.55. 26 The bill makes conforming amendments to other provisions of 27 the Code relating to the collection of the use tax. 28 -5- LSB 5648SC (5) 83 md/sc 5/ 5