HF 2180 (LSB 5154YH (5) 89)

HOUSE FILE 2180

BY  FISHER

A BILL FOR

An Act reducing the state sales and use tax imposed on the sales price of American-made products.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  423.3A  Reduced rate —— American-made products.
   1.  Notwithstanding section 423.2, a tax of three percent shall be imposed upon all sales of personal property sold at retail in the state if the personal property is primarily manufactured in the United States.
   2.  This section does not apply unless the manufacturer certifies the personal property has been primarily manufactured in the United States.
   3.  As used in this section, “manufacturer” means a business that primarily purchases, receives, or holds personal property of any description for the purpose of adding to its value by a process of manufacturing with a view to selling the property for gain or profit.
   4.  The department shall adopt rules pursuant to chapter 17A to administer this section.
    Sec. 2.  NEW SECTION.  423.5A  Reduced rate —— American-made products.
   1.  Notwithstanding section 423.5, an excise tax of three percent of the purchase price shall be imposed upon the use in this state of tangible personal property purchased for use in this state if the personal property is primarily manufactured in the United States.
   2.  This section does not apply unless the manufacturer certifies the personal property has been primarily manufactured in the United States.
   3.  As used in this section, “manufacturer” means a business that primarily purchases, receives, or holds personal property of any description for the purpose of adding to its value by a process of manufacturing with a view to selling the property for gain or profit.
   4.  The department shall adopt rules pursuant to chapter 17A to administer this section.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill reduces the state sales and use tax imposed on the sales price of American-made products.
   The bill reduces the state sales and use tax rate from 6 percent to 3 percent on the sales price of personal property subject to such tax in this state, if the personal property is primarily manufactured in the United States.
   The bill does not apply unless the manufacturer certifies the personal property has been primarily manufactured in the United States.
   The department of revenue is required to adopt rules to administer the bill.