HF 598 (LSB 1432HV (2) 85)

HOUSE FILE 598

BY  COMMITTEE ON WAYS AND MEANS

(SUCCESSOR TO HF 111)

A BILL FOR

An Act exempting the sales price of all-terrain vehicles and off-road utility vehicles used primarily 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, Code 2013, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  d.  For purposes of this subsection, an all-terrain vehicle and an off-road utility vehicle, as defined in section 321I.1, are exempt under paragraph “a” when used primarily in agricultural production.
EXPLANATION
   This bill exempts the sales price of all-terrain vehicles and off-road utility vehicles used primarily in agricultural production from the sales and use tax. Under current law, such vehicles are not exempt from sales and use tax unless they are 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.
   “Off-road utility vehicle” means a motorized vehicle with not less than four and not more than eight nonhighway tires or rubberized tracks that is limited in engine displacement to less than 1,500 cubic centimeters and in total dry weight to not more than 2,000 pounds and that has a seat that is of bucket or bench design, not intended to be straddled by the operator, and a steering wheel or control levers for 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.