House File 436 - Introduced HOUSE FILE 436 BY YOUNG , HAYES , GOLDING , HENDERSON , INGELS , MOORE , ANDREWS , DUNWELL , THOMPSON , SITZMANN , FETT , BRADLEY , GEHLBACH , WELDON , GERHOLD , and COLLINS A BILL FOR An Act relating to child restraint systems by excluding 1 purchases from the sales and use tax and by including the 2 value in the loss calculations for specified insurance 3 settlements of automobiles, and including applicability 4 provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 2527YH (6) 91 jm/jh

H.F. 436 DIVISION I 1 SALES AND USE TAX EXEMPTION 2 Section 1. Section 423.3, Code 2025, is amended by adding 3 the following new subsection: 4 NEW SUBSECTION . 111. a. The sales price from the sale of a 5 child restraint system used in an automobile. 6 b. For purposes of this subsection: 7 (1) “Automobile” means the same as defined in section 321.1. 8 (2) “Child restraint system” means the same as defined in 9 section 321.446. 10 DIVISION II 11 INSURANCE SETTLEMENTS 12 Sec. 2. NEW SECTION . 507B.4D Automobile loss settlements —— 13 child restraint systems. 14 If an automobile insurance policy provides for the 15 settlement of an automobile partial loss or total loss, a 16 person shall include the value of any child restraint system 17 that is located in an automobile at the time the automobile is 18 subject to a partial loss or a total loss. For purposes of 19 this section, “automobile” has the same meaning as defined in 20 section 321.1, and “child restraint system” has the same meaning 21 as defined in section 321.446. 22 Sec. 3. APPLICABILITY. This division of this Act applies to 23 automobile losses for automobiles that are subject to a partial 24 loss or a total loss occurring on or after July 1, 2025. 25 EXPLANATION 26 The inclusion of this explanation does not constitute agreement with 27 the explanation’s substance by the members of the general assembly. 28 This bill relates to child restraint systems. 29 DIVISION I —— SALES AND USE TAX EXEMPTION. The bill exempts 30 from the sales and use tax the sales price of a child restraint 31 system. The bill defines “child restraint system”. 32 By operation of Code section 423.6, an item exempt from the 33 imposition of the sales tax is also exempt from the use tax 34 imposed in Code section 423.5. 35 -1- LSB 2527YH (6) 91 jm/jh 1/ 2

H.F. 436 DIVISION II —— INSURANCE SETTLEMENTS. The bill requires 1 a person to include the value of any child restraint systems 2 that are located in an automobile at the time the automobile is 3 subject to a partial or total loss. “Automobile” is defined 4 in the bill as a motor vehicle designed primarily for carrying 5 nine passengers or less, excluding motorcycles and motorized 6 bicycles. The bill defines “child restraint system” as a 7 specially designed seating system, including a belt-positioning 8 seat or a booster seat, that meets federal motor vehicle safety 9 standards set forth in 49 C.F.R. §571.213. 10 The division applies to automobile losses for automobiles 11 that are subject to a partial or total loss occurring on or 12 after July 1, 2025. 13 -2- LSB 2527YH (6) 91 jm/jh 2/ 2