HOUSE FILE 2056

BY  MURPHY

A BILL FOR

An Act Act relating to the registration and taxation of minibikes used in agricultural operations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 321.1, subsection 32, unnumbered paragraph 1, Code Supplement 2011, is amended to read as follows:
   “Implement of husbandry” means a vehicle or special mobile equipment manufactured, designed, or reconstructed for agricultural purposes and, except for incidental uses, exclusively used in the conduct of agricultural operations. “Implements of husbandry” includes all-terrain vehicles operated in compliance with section 321.234A, subsection 1, paragraph “a”, fence-line feeders, and vehicles used exclusively for the application of organic or inorganic plant food materials, organic agricultural limestone, or agricultural chemicals.

“Implement of husbandry” includes a minibike used exclusively for agricultural purposes and, except for incidental uses, exclusively used in the conduct of agricultural operations. To be considered an implement of husbandry, a self-propelled implement of husbandry must be operated at speeds of thirty-five miles per hour or less. “Reconstructed” as used in this subsection means materially altered from the original construction by the removal, addition, or substitution of essential parts, new or used.
    Sec. 2.  Section 321.1, Code Supplement 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  39.  “Minibike” means a small two-wheeled motorcycle with a low frame and elevated handlebars designed to transport only one person and not primarily manufactured for highway use.
    Sec. 3.  Section 423.3, subsection 8, paragraph a, Code Supplement 2011, is amended by adding the following new subparagraph:
   NEW SUBPARAGRAPH.  (4)  The farm machinery or equipment is a minibike, as defined in section 321.1, which shall be operated as an implement of husbandry as provided in section 321.1, subsection 32.
EXPLANATION
   This bill provides an exemption from motor vehicle registration and from sales tax for minibikes used in agricultural production. 
   The bill defines “minibike” as a small two-wheeled motorcycle with a low frame and elevated handlebars designed to transport only one person and not primarily manufactured for highway use. The bill provides that such a motor vehicle is considered an implement of husbandry if it is used exclusively for agricultural purposes and, except for incidental uses, exclusively used in the conduct of agricultural operations. 
   Pursuant to current law, a vehicle which is an implement of husbandry is not subject to motor vehicle registration requirements and is exempt from payment of motor vehicle registration fees. This current exemption from motor vehicle registration requirements and fees would apply to a minibike that qualifies for registration as a motorcycle and also meets the requirements for an implement of husbandry. 
   Minibikes that do not meet federal motor vehicle safety standards for motor vehicles operated on highways are currently subject to state sales tax. The bill provides an exemption from the state sales tax for minibikes used as implements of husbandry.