Senate File 5 - Introduced SENATE FILE 5 BY JOHNSON A BILL FOR An Act providing a sales tax exemption for the sale of horses. 1 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 2 TLSB 1096SS (5) 84 tw/sc

S.F. 5 Section 1. Section 423.3, subsection 14, Code 2011, is 1 amended to read as follows: 2 14. The sales price from the sales of horses, commonly known 3 as draft horses, when purchased for use and so used as draft 4 sale of horses. 5 EXPLANATION 6 Currently, Iowa law only exempts the sale of draft horses 7 from the sales tax. This bill exempts all sales of horses from 8 the sales tax. 9 By operation of Code section 423.6, an item exempt from the 10 imposition of the sales tax is also exempt from the use tax 11 imposed in Code section 423.5. 12 -1- LSB 1096SS (5) 84 tw/sc 1/ 1