House
File
2439
-
Introduced
HOUSE
FILE
2439
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HSB
660)
A
BILL
FOR
An
Act
relating
to
the
administration
of
the
sales
and
use
1
taxes
by
modifying
provisions
related
to
property
purchased
2
for
resale
and
by
creating
a
sales
tax
exemption
for
certain
3
items
purchased
for
use
in
providing
vehicle
wash
and
wax
4
services
and
including
effective
date
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
TLSB
5512HV
(3)
84
mm/sc
H.F.
2439
Section
1.
Section
423.1,
subsection
39,
paragraphs
b
and
c,
1
Code
Supplement
2011,
are
amended
to
read
as
follows:
2
b.
The
property
is
transferred
to
the
user
of
the
service
3
in
connection
with
the
performance
of
the
service
in
a
form
4
or
quantity
capable
of
a
fixed
or
definite
price
value
,
or
5
the
property
is
entirely
consumed
in
connection
with
the
6
performance
of
an
auto
body
repair
service
purchased
by
the
7
ultimate
user
.
8
c.
The
sale
is
evidenced
by
a
separate
charge
for
the
9
identifiable
piece
of
property
unless
the
property
is
entirely
10
consumed
in
connection
with
the
performance
of
an
auto
body
11
repair
service
purchased
by
the
ultimate
user
.
12
Sec.
2.
Section
423.3,
Code
Supplement
2011,
is
amended
by
13
adding
the
following
new
subsection:
14
NEW
SUBSECTION
.
96.
The
sales
price
from
the
sale
of
water,
15
electricity,
chemicals,
solvents,
sorbents,
or
reagents
to
a
16
retailer
to
be
used
in
providing
a
service
that
includes
a
17
vehicle
wash
and
wax,
which
vehicle
wash
and
wax
service
is
18
subject
to
section
423.2,
subsection
6.
19
Sec.
3.
EFFECTIVE
UPON
ENACTMENT.
This
Act,
being
deemed
of
20
immediate
importance,
takes
effect
upon
enactment.
21
EXPLANATION
22
This
bill
amends
the
definition
of
“property
purchased
for
23
resale
in
connection
with
the
performance
of
a
service”
in
24
Code
section
423.1.
Under
current
law,
property
qualifies
25
as
“property
purchased
for
resale
in
connection
with
the
26
performance
of
a
service”
if,
among
other
things,
it
is
27
transferred
during
the
service
in
a
form
or
quantity
capable
28
of
a
fixed
or
definite
price
value
and
listed
as
a
separate
29
charge.
The
bill
provides
that
property
which
is
entirely
30
consumed
in
connection
with
the
performance
of
an
auto
body
31
repair
service
will
also
qualify
as
“property
purchased
for
32
resale
in
connection
with
the
performance
of
a
service”,
and
33
provides
that
the
property
entirely
consumed
in
performance
of
34
the
service
need
not
be
listed
as
a
separate
charge.
35
-1-
LSB
5512HV
(3)
84
mm/sc
1/
2
H.F.
2439
The
bill
also
creates
a
sales
tax
exemption
for
sales
of
1
water,
electricity,
chemicals,
solvents,
sorbents,
or
reagents
2
made
to
a
retailer
for
use
in
providing
taxable
vehicle
wash
3
and
wax
services.
By
operation
of
Code
section
423.6,
an
item
4
exempt
from
the
imposition
of
the
sales
tax
is
also
exempt
from
5
the
use
tax
imposed
in
Code
section
423.5.
6
The
bill
takes
effect
immediately
upon
enactment.
7
-2-
LSB
5512HV
(3)
84
mm/sc
2/
2