House File 650 - Introduced HOUSE FILE 650 BY SANDS A BILL FOR An Act providing a sales tax exemption for the sales price from 1 the sale of certain items to the operator of a vehicle wash 2 and wax facility. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2045YH (3) 84 tw/sc

H.F. 650 Section 1. Section 423.3, Code 2011, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 96. The sales price of cleaning items sold 3 to the operator of a vehicle wash and wax facility if such 4 items are used by the facility operator or by a motor vehicle 5 user in the washing, waxing, drying, or vacuuming of the motor 6 vehicle. For purposes of this subsection, “cleaning items” 7 includes soap, cleanser, wax, water, rags, and towels. Items 8 attached to real property, such as scrubbers, are not exempt 9 under this subsection. 10 EXPLANATION 11 This bill provides a sales tax exemption for the sales price 12 of cleaning items sold to the operator of a vehicle wash and 13 wax facility. Cleaning items include soap, cleanser, wax, 14 water, rags, and towels, but does not include items attached to 15 real property, such as scrubbers. 16 By operation of Code section 423.6, an item exempt from the 17 imposition of the sales tax is also exempt from the use tax 18 imposed in Code section 423.5. 19 -1- LSB 2045YH (3) 84 tw/sc 1/ 1