House File 2180 - Introduced HOUSE FILE 2180 BY FISHER A BILL FOR An Act reducing the state sales and use tax imposed on the 1 sales price of American-made products. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5154YH (5) 89 jm/jh

H.F. 2180 Section 1. NEW SECTION . 423.3A Reduced rate —— 1 American-made products. 2 1. Notwithstanding section 423.2, a tax of three percent 3 shall be imposed upon all sales of personal property sold at 4 retail in the state if the personal property is primarily 5 manufactured in the United States. 6 2. This section does not apply unless the manufacturer 7 certifies the personal property has been primarily manufactured 8 in the United States. 9 3. As used in this section, “manufacturer” means a business 10 that primarily purchases, receives, or holds personal property 11 of any description for the purpose of adding to its value by a 12 process of manufacturing with a view to selling the property 13 for gain or profit. 14 4. The department shall adopt rules pursuant to chapter 17A 15 to administer this section. 16 Sec. 2. NEW SECTION . 423.5A Reduced rate —— American-made 17 products. 18 1. Notwithstanding section 423.5, an excise tax of three 19 percent of the purchase price shall be imposed upon the use in 20 this state of tangible personal property purchased for use in 21 this state if the personal property is primarily manufactured 22 in the United States. 23 2. This section does not apply unless the manufacturer 24 certifies the personal property has been primarily manufactured 25 in the United States. 26 3. As used in this section, “manufacturer” means a business 27 that primarily purchases, receives, or holds personal property 28 of any description for the purpose of adding to its value by a 29 process of manufacturing with a view to selling the property 30 for gain or profit. 31 4. The department shall adopt rules pursuant to chapter 17A 32 to administer this section. 33 EXPLANATION 34 The inclusion of this explanation does not constitute agreement with 35 -1- LSB 5154YH (5) 89 jm/jh 1/ 2

H.F. 2180 the explanation’s substance by the members of the general assembly. 1 This bill reduces the state sales and use tax imposed on the 2 sales price of American-made products. 3 The bill reduces the state sales and use tax rate from 6 4 percent to 3 percent on the sales price of personal property 5 subject to such tax in this state, if the personal property is 6 primarily manufactured in the United States. 7 The bill does not apply unless the manufacturer certifies 8 the personal property has been primarily manufactured in the 9 United States. 10 The department of revenue is required to adopt rules to 11 administer the bill. 12 -2- LSB 5154YH (5) 89 jm/jh 2/ 2