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 TLSB 2238HV (1) 88 jm/jh
H.F. 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 -1- LSB 2238HV (1) 88 jm/jh 1/ 2
H.F. 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. 11 -2- LSB 2238HV (1) 88 jm/jh 2/ 2