HF 2470 (LSB 5629HV (2) 84)

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 machinery and equipment.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 423.3, subsection 8, Code Supplement 2011, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  c.  For purposes of this subsection, machinery and equipment qualifies for the exemption as farm machinery and equipment under paragraph “a”, if it is manufactured for use in agricultural production and is manufactured to be pulled by, or attached to, self-propelled farm machinery and equipment.
EXPLANATION
   This bill provides for an exemption from sales and use taxes imposed on machinery and equipment sold for farm use (Code sections 423.3 and 423.6). The exemption applies to machinery and equipment directly and primarily used in agricultural production. The bill provides that machinery and equipment qualifies for the exemption if it is manufactured for use in agricultural production and is manufactured to be pulled by, or attached to, self-propelled farm machinery and equipment.