SF 221 (LSB 2215XS (2) 85)

SENATE FILE 221

BY  SODDERS

A BILL FOR

An Act providing for an automobile rental surcharge, establishing a public transit assistance fund, making an appropriation, and including effective date and applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  324A.6B  Public transit assistance fund.
   A public transit assistance fund is established in the office of the treasurer of state under the control of the department. The fund shall consist of any moneys appropriated to the fund by the general assembly and the amount credited to the fund from the surcharge imposed on the rental of passenger automobiles pursuant to section 423C.5. Moneys in the fund are not subject to section 8.33. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys deposited in the fund shall be credited to the fund. Moneys in the public transit assistance fund are appropriated to the department to be used on and after October 1, 2014, for purposes of public transit assistance as provided in section 324A.6.
    Sec. 2.  Section 423C.3, subsection 3, Code 2013, is amended to read as follows:
   3.  The tax, when collected, shall be stated as a distinct item separate and apart from the rental price of the automobile, the automobile rental surcharge imposed under section 423A.3A, and the sales and services tax imposed under chapter 423, subchapter II, or the use tax imposed under chapter 423, subchapter III.
    Sec. 3.  NEW SECTION.  423C.3A  Automobile rental surcharge.
   A surcharge of two dollars is imposed on each automobile rental transaction that is subject to the automobile rental tax under section 423C.3. The lessor shall collect the surcharge by adding the surcharge to the total amount due on the rental transaction. The surcharge shall be stated as a distinct item separate and apart from the rental price of the automobile and any taxes imposed under chapter 423, subchapter II or III, or this chapter. The department shall administer the surcharge in conjunction with administration of the automobile rental tax as provided in this chapter.
    Sec. 4.  Section 423C.5, Code 2013, is amended to read as follows:
   423C.5  Deposit of revenue.
   1.  The
 
Except as provided in subsection 2, revenue arising from the operation of this chapter shall be credited to the statutory allocations fund created under section 321.145, subsection 2.
   2.  Revenue from the collection of the surcharge imposed under section 423C.3A shall be credited to the public transit assistance fund created under section 324A.6B.
    Sec. 5.  EFFECTIVE DATE.  This Act takes effect October 1, 2013.
    Sec. 6.  APPLICABILITY.  This Act applies to automobile rental transactions entered into on or after October 1, 2013.
EXPLANATION
   This bill imposes a $2 surcharge on every automobile rental transaction that is subject to the automobile rental excise tax. Pursuant to current law, the automobile rental excise tax is imposed on the rental of motor vehicles designed primarily for carrying nine passengers or less, excluding motorcycles and motorized bicycles, for a period of 60 days or less. The automobile rental surcharge is to be collected by the lessor by adding the surcharge to the total amount due on the rental transaction. The department of revenue is required to administer the surcharge in conjunction with the administration of the automobile rental excise tax.
   The bill establishes a public transit assistance fund to be administered by the department of transportation. Revenue from the collection of the automobile rental surcharge shall be credited to the fund. The bill appropriates moneys in the public transit assistance fund to the department of transportation to be used, beginning October 1, 2014, for providing assistance to public transit for the development, improvement, and maintenance of public transit systems according to current policies established in Code section 324A.6.
   The bill takes effect October 1, 2013, and applies to automobile rental transactions entered into on or after that date.