HF 111 (LSB 1432HH (1) 85)

HOUSE FILE 111

BY  BAUDLER

A BILL FOR

An Act exempting the sales price of all-terrain vehicles used in agricultural production from the sales and use tax. 
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 423.3, subsection 8, paragraph c, Code 2013, is amended by adding the following new subparagraph:
   NEW SUBPARAGRAPH.  (4)  An all-terrain vehicle as defined in section 321I.1. 
EXPLANATION
   This bill exempts the sales price of all-terrain vehicles used in agricultural production from the sales and use tax. Under current law, an all-terrain vehicle is not exempt from sales and use tax unless it is directly and primarily used in production of agricultural products. “All-terrain vehicle” means a motorized vehicle with not less than three and not more than six nonhighway tires that is limited in engine displacement to less than one thousand cubic centimeters and in total dry weight to less than one thousand two hundred pounds and that has a seat or saddle designed to be straddled by the operator and handlebars for steering control.
   By operation of Code section 423.6, an item exempt from the imposition of the sales tax is also exempt from the use tax imposed in Code section 423.5.