H.F. 448 Section 1. Section 423.3, Code 2011, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 96. a. The sales price from the sale of 3 high-efficiency vehicle conversion kits. 4 b. For purposes of this subsection, the following terms have 5 the following meanings: 6 (1) “Comparable conventional vehicle” means a motor vehicle 7 of the same make, model year, weight, size, and intended use 8 that has not been converted to a high-efficiency vehicle. 9 (2) “Conversion kit” means the tangible personal property 10 and directly related installation services necessary for the 11 conversion of a conventional motor vehicle to a high-efficiency 12 vehicle. 13 (3) “Fuel economy” means the average fuel economy of 14 a vehicle, as computed by the United States environmental 15 protection agency pursuant to 40 C.F.R. pt. 600. 16 (4) “High-efficiency vehicle” means a motor vehicle capable 17 of being powered entirely by an onboard source of electricity 18 that when operational provides at least seventy-five percent 19 more fuel economy than a comparable conventional vehicle. 20 EXPLANATION 21 This bill provides a sales tax exemption for the sales price 22 of high-efficiency vehicle conversion kits. 23 The bill defines certain terms for purposes of the 24 exemption. More specifically, the bill provides that 25 a “conversion kit” includes both the property and the 26 installation services necessary for converting conventional 27 vehicles and that a “high-efficiency vehicle” is a motor 28 vehicle capable of being powered entirely by an onboard source 29 of electricity that when operational provides at least 75 30 percent more fuel economy than a comparable conventional 31 vehicle. 32 By operation of Code section 423.6, an item exempt from the 33 imposition of the sales tax is also exempt from the use tax 34 imposed in Code section 423.5. 35 -1- LSB 1446HH (2) 84 tw/sc 1/ 1