Senate File 221 - Introduced SENATE FILE 221 BY SODDERS A BILL FOR An Act providing for an automobile rental surcharge, 1 establishing a public transit assistance fund, making 2 an appropriation, and including effective date and 3 applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2215XS (2) 85 dea/sc

S.F. 221 Section 1. NEW SECTION . 324A.6B Public transit assistance 1 fund. 2 A public transit assistance fund is established in the 3 office of the treasurer of state under the control of the 4 department. The fund shall consist of any moneys appropriated 5 to the fund by the general assembly and the amount credited to 6 the fund from the surcharge imposed on the rental of passenger 7 automobiles pursuant to section 423C.5. Moneys in the fund are 8 not subject to section 8.33. Notwithstanding section 12C.7, 9 subsection 2, interest or earnings on moneys deposited in the 10 fund shall be credited to the fund. Moneys in the public 11 transit assistance fund are appropriated to the department to 12 be used on and after October 1, 2014, for purposes of public 13 transit assistance as provided in section 324A.6. 14 Sec. 2. Section 423C.3, subsection 3, Code 2013, is amended 15 to read as follows: 16 3. The tax, when collected, shall be stated as a distinct 17 item separate and apart from the rental price of the 18 automobile , the automobile rental surcharge imposed under 19 section 423A.3A, and the sales and services tax imposed under 20 chapter 423, subchapter II , or the use tax imposed under 21 chapter 423, subchapter III . 22 Sec. 3. NEW SECTION . 423C.3A Automobile rental surcharge. 23 A surcharge of two dollars is imposed on each automobile 24 rental transaction that is subject to the automobile rental tax 25 under section 423C.3. The lessor shall collect the surcharge 26 by adding the surcharge to the total amount due on the rental 27 transaction. The surcharge shall be stated as a distinct item 28 separate and apart from the rental price of the automobile and 29 any taxes imposed under chapter 423, subchapter II or III, or 30 this chapter. The department shall administer the surcharge in 31 conjunction with administration of the automobile rental tax as 32 provided in this chapter. 33 Sec. 4. Section 423C.5, Code 2013, is amended to read as 34 follows: 35 -1- LSB 2215XS (2) 85 dea/sc 1/ 3

S.F. 221 423C.5 Deposit of revenue. 1 1. The Except as provided in subsection 2, revenue arising 2 from the operation of this chapter shall be credited to the 3 statutory allocations fund created under section 321.145, 4 subsection 2 . 5 2. Revenue from the collection of the surcharge imposed 6 under section 423C.3A shall be credited to the public transit 7 assistance fund created under section 324A.6B. 8 Sec. 5. EFFECTIVE DATE. This Act takes effect October 1, 9 2013. 10 Sec. 6. APPLICABILITY. This Act applies to automobile 11 rental transactions entered into on or after October 1, 2013. 12 EXPLANATION 13 This bill imposes a $2 surcharge on every automobile rental 14 transaction that is subject to the automobile rental excise 15 tax. Pursuant to current law, the automobile rental excise tax 16 is imposed on the rental of motor vehicles designed primarily 17 for carrying nine passengers or less, excluding motorcycles 18 and motorized bicycles, for a period of 60 days or less. 19 The automobile rental surcharge is to be collected by the 20 lessor by adding the surcharge to the total amount due on the 21 rental transaction. The department of revenue is required to 22 administer the surcharge in conjunction with the administration 23 of the automobile rental excise tax. 24 The bill establishes a public transit assistance fund to 25 be administered by the department of transportation. Revenue 26 from the collection of the automobile rental surcharge shall 27 be credited to the fund. The bill appropriates moneys in 28 the public transit assistance fund to the department of 29 transportation to be used, beginning October 1, 2014, for 30 providing assistance to public transit for the development, 31 improvement, and maintenance of public transit systems 32 according to current policies established in Code section 33 324A.6. 34 The bill takes effect October 1, 2013, and applies to 35 -2- LSB 2215XS (2) 85 dea/sc 2/ 3

S.F. 221 automobile rental transactions entered into on or after that 1 date. 2 -3- LSB 2215XS (2) 85 dea/sc 3/ 3