SSB 3133 (LSB 5648SC (5) 83)

SENATE FILE _____

BY  (PROPOSED COMMITTEE ON LOCAL GOVERNMENT BILL BY CHAIRPERSON QUIRMBACH)

A BILL FOR

An Act relating to the collection of the use tax on manufactured housing, the licensing of manufactured home retailers, and making penalties applicable. 
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 103A.55, subsection 1, Code 2009, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  g.  Failing to comply with the requirements of section 423.26A relating to the collection of use tax.
    Sec. 2.  Section 312.1, subsection 1, paragraph d, Code 2009, is amended to read as follows:
   d.  Revenue derived from the use tax collected under section sections 423.26 and 423.26A, to the extent provided under section 321.145, subsection 2.
    Sec. 3.  Section 321.20, subsection 1, paragraph e, Code 2009, is amended to read as follows:
   e.  The amount of the fee for new registration to be paid under section 321.105A, or the amount of tax to be paid under section 423.26, subsection 1, or the amount of tax to be paid under section 423.26A.
    Sec. 4.  Section 331.557, subsection 3, Code 2009, is amended to read as follows:
   3.  Collect and forward the use tax on vehicles subject only to a certificate of title and on manufactured housing as provided in section 423.14, and section 423.26, subsection 1, and section 423.26A.
    Sec. 5.  Section 423.14, subsection 2, paragraph a, Code 2009, is amended to read as follows:
   a.  The tax upon the use of all vehicles subject only to the issuance of a certificate of title or the tax upon the use of manufactured housing shall be collected by the county treasurer or the state department of transportation pursuant to section 423.26, subsection 1. The county treasurer shall retain one dollar from each tax payment collected, to be credited to the county general fund.
    Sec. 6.  Section 423.16, subsection 1, Code 2009, is amended to read as follows:
   1.  The retail sale or transfer of watercraft, modular homes, manufactured housing, or mobile homes, and the retail sale, excluding lease or rental, of motor vehicles, trailers, semitrailers, or aircraft that do not qualify as transportation equipment, as defined in section 423.15, subsection 3.
    Sec. 7.  Section 423.26, subsection 1, paragraph a, Code 2009, is amended to read as follows:
   a.  The use tax imposed upon the use of vehicles subject only to the issuance of a certificate of title or imposed upon the use of manufactured housing shall be paid by the owner of the vehicle or of the manufactured housing to the county treasurer or the state department of transportation from whom the certificate of title is obtained. A certificate of title shall not be issued until the tax has been paid. The county treasurer or the state department of transportation shall require every applicant for a certificate of title to supply information as the county treasurer or the director deems necessary as to the time of purchase, the purchase price, installed purchase price, and other information relative to the purchase of the vehicle or manufactured housing. On or before the tenth day of each month, the county treasurer or the state department of transportation shall remit to the department the amount of the taxes collected during the preceding month.
    Sec. 8.  NEW SECTION.  423.26A  Manufactured housing —— collection of use tax —— certificate of title.
   1.  Except as provided in subsection 3, the use tax imposed upon the use of manufactured housing shall be paid by the owner of the manufactured housing to the manufactured home retailer licensed under chapter 103A. The owner of the manufactured housing shall also provide to the manufactured home retailer all information necessary to complete and submit an application for a certificate of title.
   2.  Use tax collected by the manufactured home retailer shall be forwarded to the county treasurer or the state department of transportation. The county treasurer shall retain one dollar from each tax payment collected by a manufactured home retailer and paid to the county treasurer, to be credited to the county general fund. The manufactured home retailer shall submit an application for certificate of title on behalf of the owner of the manufactured housing.
   3.  The use tax imposed upon the use of manufactured housing brought into the state of Iowa which has not previously been subject to the tax imposed under this subchapter and for which that tax has not been paid, shall be paid by the owner of the manufactured housing to the county treasurer or the state department of transportation from whom the certificate of title is obtained. The owner of the manufactured housing shall submit an application for a certificate of title. Section 423.22 shall apply in the case where the owner has paid tax in another state.
   4.  The county treasurer or the state department of transportation shall require every application for a certificate of title to include information as the county treasurer or the director deems necessary as to the time of purchase, the purchase price, installed purchase price, and other information relative to the purchase of the manufactured housing.
   5.  A certificate of title shall not be issued until the tax has been paid. A certificate of title shall be delivered to the owner of the manufactured housing by the county treasurer or state department of transportation who received the use tax.
   6.  On or before the tenth day of each month, the county treasurer or the state department of transportation shall remit to the department the amount of the taxes collected during the preceding month.
   7.  A person who willfully makes a false statement in regard to taxation under this section is guilty of a fraudulent practice. A person who willfully makes a false statement in regard to taxation under this section with the intent to evade the payment of tax shall be assessed a penalty of seventy-five percent of the amount of tax unpaid and required to be paid.
    Sec. 9.  Section 423.36, subsection 8, paragraph b, subparagraph (2), Code 2009, is amended to read as follows:
   (2)  Taxes imposed under section 423.26, section 423.26A, and chapter 423C.
    Sec. 10.  Section 423.43, subsection 2, Code 2009, is amended to read as follows:
   2.  All revenue derived from the use tax imposed pursuant to section sections 423.26 and 423.26A shall be credited to the statutory allocations fund created under section 321.145, subsection 2.
EXPLANATION
   Current Code section 423.26 requires the use tax imposed upon the use of vehicles subject only to the issuance of a certificate of title or imposed upon the use of manufactured housing to be paid by the owner of the vehicle or of the manufactured housing to the county treasurer or the department of transportation. 
   This bill removes manufactured housing from Code section 423.26 and enacts a new Code section 423.26A relating to the collection of the use tax on manufactured housing. The bill requires the use tax imposed upon the use of manufactured housing to be paid by the owner of the manufactured housing to the manufactured home retailer licensed under Code chapter 103A. The bill requires the manufactured home retailer to submit an application for certificate of title on behalf of the owner of the manufactured housing. To facilitate this application, the bill requires the owner to provide to the manufactured home retailer all information necessary to submit an application for a certificate of title. The bill requires, however, that the use tax imposed on manufactured housing brought in the state be paid by the owner to the county treasurer or the state department of transportation. In such cases, the owner is also responsible for submitting the application for the certificate of title. The bill also makes Code section 423.22 applicable to manufactured housing brought into the state and for which the owner has paid taxes in another state.
   Under the bill, use tax collected by the manufactured home retailer must be forwarded to the county treasurer or the state department of transportation from whom the certificate of title is obtained. The county treasurer is authorized to retain one dollar from each tax payment collected by a manufactured home retailer and paid to the county treasurer. The bill provides that on or before the tenth day of each month, the county treasurer and the department of transportation must remit to the department of revenue the amount of the taxes collected during the preceding month.
   The bill provides that all revenue derived from the use tax imposed pursuant to new Code section 423.26A is credited to the statutory allocations fund created under Code section 321.145, subsection 2, under the control of the department of transportation.
   The bill provides that a person who willfully makes a false statement in regard to taxation under new Code section 423.26A is guilty of a fraudulent practice under Code chapter 714. The bill also provides that a person who willfully makes a false statement in regard to taxation under this section with the intent to evade the payment of tax is assessed a penalty of 75 percent of the amount of tax unpaid and required to be paid.
   The bill also includes the failure to comply with the requirements of new Code section 423.26A as grounds for the revocation, suspension, or refusal of a manufactured home retailer license under Code section 103A.55.
   The bill makes conforming amendments to other provisions of the Code relating to the collection of the use tax.