Senate File 2038 - Introduced SENATE FILE 2038 BY ROZENBOOM A BILL FOR An Act exempting remotely piloted aircraft used directly 1 and primarily for agricultural purposes from aircraft 2 registration requirements and sales tax. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5679XS (3) 91 th/ns

S.F. 2038 Section 1. Section 328.35, subsection 1, Code 2026, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . g. A remotely piloted aircraft, as defined 3 in section 715E.1, used directly and primarily for agricultural 4 purposes. 5 Sec. 2. Section 423.3, Code 2026, is amended by adding the 6 following new subsection: 7 NEW SUBSECTION . 7A. The sales price of a remotely piloted 8 aircraft, as defined in section 715E.1, used directly and 9 primarily for agricultural purposes. 10 EXPLANATION 11 The inclusion of this explanation does not constitute agreement with 12 the explanation’s substance by the members of the general assembly. 13 Under current law, an owner of a civil aircraft who resides 14 in Iowa, or who operates or otherwise controls the aircraft 15 within the boundaries of Iowa for a period of more than 30 16 days, must register the aircraft annually with the department 17 of transportation (DOT). Annual aircraft registration fees 18 are paid to the DOT and deposited in the state aviation fund. 19 The fee for the first year of aircraft registration is 1 20 percent of the manufacturer’s list price of the aircraft. Each 21 year thereafter, the fee is reduced by 0.25 percent of the 22 manufacturer’s list price of the aircraft until the fee is set 23 at 0.25 percent for the fourth and subsequent registration 24 years. The minimum fee is $35 and the maximum fee is $5,000. 25 Also under current law, there is imposed a tax of 6 percent 26 upon the sales price of all sales of tangible personal property 27 sold at retail in the state to consumers or users, unless 28 otherwise provided in Code chapter 423. 29 This bill exempts remotely piloted aircraft used directly 30 and primarily for agricultural purposes from the registration 31 requirements for aircraft under Code chapter 328 and from the 32 sales tax. By operation of Code section 423.6, an item exempt 33 from the sales tax is also exempt from the use tax imposed 34 in Code section 423.5. For purposes of the bill, “remotely 35 -1- LSB 5679XS (3) 91 th/ns 1/ 2

S.F. 2038 piloted aircraft” means a self-propelled vehicle used for 1 navigation and flight, that is controlled by the use of an 2 electronic system and is not designed to carry a human. 3 -2- LSB 5679XS (3) 91 th/ns 2/ 2