House File 111 - Introduced HOUSE FILE 111 BY BAUDLER A BILL FOR An Act exempting the sales price of all-terrain vehicles used 1 in agricultural production from the sales and use tax. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1432HH (1) 85 mm/sc

H.F. 111 Section 1. Section 423.3, subsection 8, paragraph c, Code 1 2013, is amended by adding the following new subparagraph: 2 NEW SUBPARAGRAPH . (4) An all-terrain vehicle as defined in 3 section 321I.1. 4 EXPLANATION 5 This bill exempts the sales price of all-terrain vehicles 6 used in agricultural production from the sales and use tax. 7 Under current law, an all-terrain vehicle is not exempt from 8 sales and use tax unless it is directly and primarily used in 9 production of agricultural products. “All-terrain vehicle” 10 means a motorized vehicle with not less than three and not 11 more than six nonhighway tires that is limited in engine 12 displacement to less than one thousand cubic centimeters and in 13 total dry weight to less than one thousand two hundred pounds 14 and that has a seat or saddle designed to be straddled by the 15 operator and handlebars for steering control. 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 1432HH (1) 85 mm/sc 1/ 1