House
File
607
-
Introduced
HOUSE
FILE
607
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HSB
126)
A
BILL
FOR
An
Act
modifying
the
sales
and
use
tax
exemption
for
the
sale
1
of
certain
component
parts
attached
to
or
services
performed
2
on
aircraft.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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2238HV
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607
Section
1.
Section
423.3,
subsections
74
and
76,
Code
2019,
1
are
amended
to
read
as
follows:
2
74.
The
sales
price
from
the
sale
or
rental
of
aircraft
for
3
use
in
a
scheduled
interstate
federal
aviation
administration
4
certificated
air
carrier
operation.
5
76.
The
sales
price
from
the
sale
or
rental
of
tangible
6
personal
property
permanently
affixed
or
attached
as
a
7
component
part
of
the
aircraft,
including
but
not
limited
8
to
repair
or
replacement
materials
or
parts;
and
the
sales
9
price
of
all
services
used
for
aircraft
repair,
remodeling,
10
and
maintenance
services
when
such
services
are
performed
on
11
aircraft,
aircraft
engines,
or
aircraft
component
materials
or
12
parts.
For
the
purposes
of
this
exemption,
“aircraft”
means
13
aircraft
used
in
nonscheduled
interstate
federal
aviation
14
administration
certificated
air
carrier
operation
operating
15
under
14
C.F.R.
ch.
1,
pt.
135
the
same
as
defined
in
section
16
328.1
.
17
Sec.
2.
Section
423.3,
subsection
75,
Code
2019,
is
amended
18
by
striking
the
subsection.
19
EXPLANATION
20
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
21
the
explanation’s
substance
by
the
members
of
the
general
assembly.
22
Current
law
exempts
from
the
Iowa
sales
and
use
tax
the
23
sale,
rental,
or
use
of
aircraft
component
parts
permanently
24
attached
to
an
aircraft,
including
repair
or
replacement
25
materials
or
parts,
and
repair,
remodeling,
and
maintenance
26
services
used
on
an
aircraft,
aircraft
engine,
or
aircraft
27
component
materials
or
parts,
provided
the
aircraft
is
used
28
in
either
a
scheduled
or
nonscheduled
interstate
federal
29
aviation
administration
(FAA)
certified
air
carrier
operation
30
(scheduled
or
nonscheduled
FAA
operation).
This
bill
removes
31
the
requirement
that
the
aircraft
be
used
in
a
scheduled
or
32
nonscheduled
FAA
operation
to
qualify
for
the
exemption.
The
33
sale,
rental,
or
use
of
the
component
parts
and
services
34
described
above
will
be
exempt
from
the
sales
and
use
tax
35
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607
when
permanently
attached
to
or
performed
on
any
aircraft.
1
The
bill
defines
“aircraft”
to
mean
the
same
as
it
does
for
2
purposes
of
Code
chapter
328
(aeronautics),
which
includes
any
3
contrivance
now
known,
or
hereafter
invented,
used
or
designed
4
for
navigation
of
or
flight
in
the
air,
for
the
purpose
of
5
transporting
persons
or
property,
or
both.
6
The
bill
also
makes
nonsubstantive
changes
to
Code
sections
7
423.3(74)
and
423.3(75)
to
strike
or
move
similar
language
8
relating
to
the
sales
and
use
tax
exemption
described
in
the
9
bill
and
to
the
sales
and
use
tax
exemption
for
the
sale
or
10
rental
of
aircraft
used
in
a
scheduled
FAA
operation.
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