House File 187 - Introduced HOUSE FILE 187 BY PETTENGILL and R. TAYLOR A BILL FOR An Act relating to limousine drivers and services, including 1 sales and use taxes on such services. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1991YH (3) 87 ns/nh
H.F. 187 Section 1. Section 321.1, subsection 8, Code 2017, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . l. A person operating a limousine is not a 3 chauffeur. 4 Sec. 2. Section 325A.6, subsection 2, Code 2017, is amended 5 to read as follows: 6 2. All motor vehicles providing taxicab services, having 7 a seating capacity of less than seven passengers, and not 8 operating on a regular route or between specified points , and 9 all motor vehicles providing limousine services not operating 10 on a regular route or between specified points, shall maintain 11 primary automobile insurance in the amount of at least one 12 million dollars because of bodily injury to or death of one or 13 more persons and injury to or destruction of property of others 14 in any one accident. A political subdivision of the state 15 shall not enact an ordinance requiring insurance coverage for 16 such vehicles in an amount different than the amount required 17 by this subsection . 18 Sec. 3. Section 423.2, subsection 6, paragraph a, Code 2017, 19 is amended to read as follows: 20 a. The sales price of any of the following enumerated 21 services is subject to the tax imposed by subsection 22 5 : alteration and garment repair; armored car; vehicle repair; 23 battery, tire, and allied; investment counseling; service 24 charges of all financial institutions; barber and beauty; boat 25 repair; vehicle wash and wax; campgrounds; carpentry; roof, 26 shingle, and glass repair; dance schools and dance studios; 27 dating services; dry cleaning, pressing, dyeing, and laundering 28 excluding the use of self-pay washers and dryers; electrical 29 and electronic repair and installation; excavating and 30 grading; farm implement repair of all kinds; flying service; 31 furniture, rug, carpet, and upholstery repair and cleaning; fur 32 storage and repair; golf and country clubs and all commercial 33 recreation; gun and camera repair; house and building moving; 34 household appliance, television, and radio repair; janitorial 35 -1- LSB 1991YH (3) 87 ns/nh 1/ 3
H.F. 187 and building maintenance or cleaning; jewelry and watch 1 repair; lawn care, landscaping, and tree trimming and removal; 2 limousine service, including driver; machine operator; machine 3 repair of all kinds; motor repair; motorcycle, scooter, and 4 bicycle repair; oilers and lubricators; office and business 5 machine repair; painting, papering, and interior decorating; 6 parking facilities; pay television; pet grooming; pipe 7 fitting and plumbing; wood preparation; executive search 8 agencies; private employment agencies, excluding services 9 for placing a person in employment where the principal place 10 of employment of that person is to be located outside of the 11 state; reflexology; security and detective services, excluding 12 private security and detective services furnished by a peace 13 officer with the knowledge and consent of the chief executive 14 officer of the peace officer’s law enforcement agency; sewage 15 services for nonresidential commercial operations; sewing 16 and stitching; shoe repair and shoeshine; sign construction 17 and installation; storage of household goods, mini-storage, 18 and warehousing of raw agricultural products; swimming pool 19 cleaning and maintenance; tanning beds or salons; taxidermy 20 services; telephone answering service; test laboratories, 21 including mobile testing laboratories and field testing by 22 testing laboratories, and excluding tests on humans or animals 23 and excluding environmental testing services; termite, bug, 24 roach, and pest eradicators; tin and sheet metal repair; 25 transportation service consisting of the rental of recreational 26 vehicles or recreational boats, or the rental of vehicles 27 subject to registration which are registered for a gross 28 weight of thirteen tons or less for a period of sixty days or 29 less, or the rental of aircraft for a period of sixty days or 30 less; Turkish baths, massage, and reducing salons, excluding 31 services provided by massage therapists licensed under chapter 32 152C ; water conditioning and softening; weighing; welding; 33 well drilling; wrapping, packing, and packaging of merchandise 34 other than processed meat, fish, fowl, and vegetables; wrecking 35 -2- LSB 1991YH (3) 87 ns/nh 2/ 3
H.F. 187 service; wrecker and towing. 1 Sec. 4. LOCAL ORDINANCES VOID —— VALIDITY OF 2 PROCEEDINGS. On July 1, 2017, all local ordinances, 3 regulations, and rules not consistent with this Act are 4 void. However, this Act shall not affect the validity of any 5 proceeding brought or punishment imposed prior to July 1, 2017, 6 for a violation of such a local ordinance, regulation, or rule. 7 EXPLANATION 8 The inclusion of this explanation does not constitute agreement with 9 the explanation’s substance by the members of the general assembly. 10 This bill provides that persons operating limousines are not 11 chauffeurs for the purposes of Code chapter 321 (motor vehicles 12 and law of the road). 13 In addition, the bill requires motor vehicles providing 14 limousine services to maintain primary automobile insurance in 15 the amount of at least $1 million because of bodily injury to 16 or death of one or more persons and injury to or destruction 17 of property of others in any one accident. The bill prohibits 18 political subdivisions of the state from enacting ordinances 19 requiring insurance coverage for such vehicles in an amount 20 different than the required amount. On July 1, 2017, all local 21 ordinances, regulations, and rules not consistent with the bill 22 are void. However, the bill does not affect the validity of 23 any proceeding brought or punishment imposed prior to July 1, 24 2017, for a violation of such a local ordinance, regulation, 25 or rule. 26 The bill removes limousine services from the list of 27 services subject to the 6 percent sales and use tax. 28 -3- LSB 1991YH (3) 87 ns/nh 3/ 3