House File 2470 - Introduced HOUSE FILE 2470 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HSB 667) A BILL FOR An Act providing for sales and use taxes collected on farm 1 machinery and equipment. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5629HV (2) 84 da/sc

H.F. 2470 Section 1. Section 423.3, subsection 8, Code Supplement 1 2011, is amended by adding the following new paragraph: 2 NEW PARAGRAPH . c. For purposes of this subsection, 3 machinery and equipment qualifies for the exemption as 4 farm machinery and equipment under paragraph “a” , if it 5 is manufactured for use in agricultural production and is 6 manufactured to be pulled by, or attached to, self-propelled 7 farm machinery and equipment. 8 EXPLANATION 9 This bill provides for an exemption from sales and use taxes 10 imposed on machinery and equipment sold for farm use (Code 11 sections 423.3 and 423.6). The exemption applies to machinery 12 and equipment directly and primarily used in agricultural 13 production. The bill provides that machinery and equipment 14 qualifies for the exemption if it is manufactured for use in 15 agricultural production and is manufactured to be pulled by, or 16 attached to, self-propelled farm machinery and equipment. 17 -1- LSB 5629HV (2) 84 da/sc 1/ 1