House Study Bill 233 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON SANDS) A BILL FOR An Act providing an exemption from the fee for new registration 1 for motor vehicles leased to certain governmental agencies 2 and nonprofit entities. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2276YC (2) 84 dea/nh
H.F. _____ Section 1. Section 321.105A, subsection 2, paragraph c, 1 subparagraph (25), unnumbered paragraph 1, Code 2011, is 2 amended to read as follows: 3 Vehicles subject to registration under this chapter with 4 a gross vehicle weight rating of less than sixteen thousand 5 pounds when purchased for lease and titled by the lessor 6 licensed pursuant to chapter 321F and actually leased for a 7 period of twelve months or more if the lease of the vehicle is 8 subject to the fee for new registration under subsection 3 or 9 exempt from the fee for new registration pursuant to subsection 10 3, paragraph “f” . 11 Sec. 2. Section 321.105A, subsection 3, Code 2011, is 12 amended by adding the following new paragraph: 13 NEW PARAGRAPH . f. The following are exempt from the fee 14 for new registration imposed under this subsection as long as a 15 valid affidavit is filed with the county treasurer at the time 16 of application for registration: 17 (1) Vehicles leased to entities listed in section 423.3, 18 subsections 17, 18, 19, 20, 21, 22, 26, 27, 28, 31, and 79, to 19 the extent that those entities are exempt from the tax imposed 20 on the sale of tangible personal property, consisting of goods, 21 wares, or merchandise, sold at retail in the state to consumers 22 or users. 23 (2) A vehicle leased directly to a federal, state, or local 24 governmental agency and titled in an individual’s name pursuant 25 to a governmental program authorized by law. 26 EXPLANATION 27 Under current law, a fee for new registration in the amount 28 of 5 percent of the purchase price of a vehicle is required 29 each time ownership of a vehicle is transferred. The fee 30 applies to leased vehicles with a gross vehicle weight rating 31 of less than 16,000 pounds and leased for a period of 12 months 32 or more. The lessor is responsible for payment of the fee, but 33 may pass the charge along to the lessee. 34 This bill creates exemptions from the fee for new 35 -1- LSB 2276YC (2) 84 dea/nh 1/ 2
H.F. _____ registration for vehicles leased to federal, state, or local 1 governmental agencies or certain nonprofit entities that are 2 also exempt from the payment of sales tax and for vehicles 3 leased to a governmental agency and titled in an individual’s 4 name pursuant to a governmental program authorized by law. An 5 exemption from the fee for new registration is provided under 6 current law for vehicles that are sold to the same governmental 7 agencies and nonprofit entities. 8 -2- LSB 2276YC (2) 84 dea/nh 2/ 2