HF 2183 (LSB 6604HH (2) 91)

HOUSE FILE 2183

BY  BRADLEY

A BILL FOR

An Act crediting excise taxes imposed upon the sale of aircraft to the aviation fund.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 328.56, subsection 1, Code 2026, is amended to read as follows:
   1.  A state aviation fund is created under the authority of the department. The fund shall consist of moneys deposited in the fund pursuant to sections 328.36, 423.43, and 452A.82 and other moneys appropriated to the fund.
    Sec. 2.  Section 423.43, subsection 1, paragraph a, Code 2026, is amended to read as follows:
   a.  Except as provided in subsections 2, and 3, and 4, all revenue arising under the operation of the use tax under subchapter III shall be deposited into the general fund of the state.
    Sec. 3.  Section 423.43, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  4.  All revenues attributable to the imposition of the excise tax upon the purchase of aircraft subject to taxation under section 423.5, subsection 1, paragraph “a”, shall be credited to the state aviation fund created in section 328.56.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill credits excise taxes (use taxes) imposed upon the sale of aircraft to the state aviation fund. Currently, the use tax is imposed at a rate of 6 percent upon the sale of aircraft subject to registration under Code section 328.20, if the aircraft is purchased for use in this state. The bill changes the deposit of the use taxes from the sale of such aircraft from the general fund of the state to the state aviation fund. Moneys in the state aviation fund are for use by the department of transportation for airport engineering studies, construction or improvements, and the windsock program for public airports and marketing at commercial service airports.