Senate File 8 - Introduced SENATE FILE 8 BY JOHNSON A BILL FOR An Act providing a sales tax exemption for the sale of horses. 1 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 2 TLSB 1316XS (2) 86 mm/sc

S.F. 8 Section 1. Section 423.3, subsection 14, Code 2015, is 1 amended to read as follows: 2 14. The sales price from the sales of horses, commonly known 3 as draft horses, when purchased for use and so used as draft 4 sale of horses. 5 EXPLANATION 6 The inclusion of this explanation does not constitute agreement with 7 the explanation’s substance by the members of the general assembly. 8 Currently, Iowa law exempts the sale of only draft horses 9 from the sales tax. This bill exempts sales of all horses from 10 the sales tax. 11 By operation of Code section 423.6, an item exempt from the 12 imposition of the sales tax is also exempt from the use tax 13 imposed in Code section 423.5. 14 -1- LSB 1316XS (2) 86 mm/sc 1/ 1