Bill Text: IA HSB68 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act exempting certain leases or rentals between affiliates from the sales and use tax and from the fee for new vehicle registration, and including effective date and retroactive applicability provisions.(See HF 664.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2023-03-13 - Committee report approving bill, renumbered as HF 664. [HSB68 Detail]
Download: Iowa-2023-HSB68-Introduced.html
House
Study
Bill
68
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
KAUFMANN)
A
BILL
FOR
An
Act
exempting
certain
leases
or
rentals
between
affiliates
1
from
the
sales
and
use
tax
and
from
the
fee
for
new
vehicle
2
registration,
and
including
effective
date
and
retroactive
3
applicability
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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Section
1.
Section
321.105A,
subsection
3,
paragraph
f,
1
Code
2023,
is
amended
by
adding
the
following
new
subparagraph:
2
NEW
SUBPARAGRAPH
.
(3)
(a)
A
vehicle
leased
between
3
affiliates,
when
the
lessor
has
paid
the
fee
imposed
in
4
subsection
2
on
the
leased
vehicle
prior
to
the
lease.
5
(b)
For
purposes
of
this
subparagraph:
6
(i)
“Affiliate”
means
an
entity
that
directly
or
indirectly
7
controls,
is
controlled
with
or
by,
or
is
under
common
control
8
with
another
entity.
9
(ii)
“Control”
or
“controlled”
means
any
of
the
following:
10
(A)
In
the
case
of
a
United
States
corporation,
the
11
ownership,
directly
or
indirectly,
of
fifty
percent
or
more
of
12
the
voting
power
to
elect
directors.
13
(B)
In
the
case
of
a
foreign
corporation,
if
the
voting
14
power
to
elect
the
directors
is
less
than
fifty
percent,
the
15
maximum
amount
allowed
by
applicable
law.
16
(C)
In
the
case
of
an
entity
other
than
a
corporation,
fifty
17
percent
or
more
ownership
interest
in
the
entity,
or
the
power
18
to
direct
the
management
of
the
entity.
19
Sec.
2.
Section
423.3,
Code
2023,
is
amended
by
adding
the
20
following
new
subsection:
21
NEW
SUBSECTION
.
110.
a.
The
sales
price
on
the
lease
22
or
rental
of
personal
property
between
affiliates
when
the
23
affiliate
has
paid
a
tax
on
the
sales
price
imposed
under
this
24
subchapter,
a
use
tax
imposed
under
subchapter
III,
or
a
fee
25
imposed
under
section
321.105A
on
the
personal
property
leased
26
or
rented
prior
to
such
lease
or
rental.
27
b.
For
purposes
of
this
subsection:
28
(1)
“Affiliate”
means
an
entity
that
directly
or
indirectly
29
controls,
is
controlled
with
or
by,
or
is
under
common
control
30
with
another
entity.
31
(2)
“Control”
or
“controlled”
means
any
of
the
following:
32
(a)
In
the
case
of
a
United
States
corporation,
the
33
ownership,
directly
or
indirectly,
of
fifty
percent
or
more
of
34
the
voting
power
to
elect
directors.
35
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(b)
In
the
case
of
a
foreign
corporation,
if
the
voting
1
power
to
elect
the
directors
is
less
than
fifty
percent,
the
2
maximum
amount
allowed
by
applicable
law.
3
(c)
In
the
case
of
an
entity
other
than
a
corporation,
fifty
4
percent
or
more
ownership
interest
in
the
entity,
or
the
power
5
to
direct
the
management
of
the
entity.
6
Sec.
3.
REFUNDS.
Refunds
of
taxes,
interest,
or
penalties
7
which
arise
from
the
enactment
of
this
Act,
for
leases
or
8
rentals
occurring
between
January
1,
2015,
and
the
effective
9
date
of
this
Act,
shall
be
limited
to
fifteen
thousand
dollars
10
in
the
aggregate
for
any
calendar
year
in
which
claims
are
11
eligible
for
a
refund
and
shall
not
be
allowed
unless
refund
12
claims
are
filed
by
October
1,
2023,
notwithstanding
any
other
13
law
to
the
contrary.
If
the
amount
of
claims
totals
more
than
14
fifteen
thousand
dollars
in
the
aggregate
for
any
calendar
15
year
in
which
claims
are
eligible
for
a
refund,
the
department
16
of
revenue
shall
prorate
the
fifteen
thousand
dollars
in
the
17
aggregate
among
all
the
claimants
for
that
particular
calendar
18
year
in
relation
to
the
amounts
of
the
claimants’
valid
claims.
19
Sec.
4.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
20
importance,
takes
effect
upon
enactment.
21
Sec.
5.
RETROACTIVE
APPLICABILITY.
This
Act
applies
22
retroactively
to
January
1,
2015,
for
leases
or
rentals
23
occurring
on
or
after
that
date.
24
EXPLANATION
25
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
26
the
explanation’s
substance
by
the
members
of
the
general
assembly.
27
This
bill
exempts
certain
leases
or
rentals
between
28
affiliates
from
the
sales
and
use
tax
and
from
the
fee
for
new
29
vehicle
registration.
30
The
bill
exempts
from
the
fee
for
new
registration
under
Code
31
section
321.105A(3)(a)
a
vehicle
leased
between
affiliates,
32
when
the
fee
for
new
registration
imposed
under
Code
section
33
321.105A(2)
has
been
paid
by
the
lessor
prior
to
the
lease.
34
The
bill
exempts
from
the
sales
and
use
tax
the
lease
or
35
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_____
rental
of
personal
property
between
affiliates
when
a
sales
1
tax,
use
tax,
or
fee
for
new
registration
for
a
vehicle
has
2
been
paid
by
an
affiliate
on
the
personal
property
leased
or
3
rented
prior
to
such
lease
or
rental.
4
The
bill
requires
refunds
of
taxes,
interest,
or
penalties
5
arising
from
claims
resulting
from
the
enactment
of
the
bill
6
for
leases
or
rentals
occurring
between
January
1,
2015,
and
7
the
effective
date
of
the
bill
to
be
filed
prior
to
October
8
1,
2023.
Refunds
of
taxes,
interest,
or
penalties
shall
not
9
exceed
$15,000
in
the
aggregate
in
any
calendar
year
in
which
10
claims
are
eligible
for
a
refund.
If
the
amount
of
claims
11
totals
more
than
$15,000
in
the
aggregate
for
any
calendar
year
12
in
which
claims
are
eligible
for
a
refund,
the
department
of
13
revenue
shall
prorate
the
$15,000
in
the
aggregate
among
all
14
the
claimants
for
that
particular
calendar
year.
15
The
bill
defines
“affiliate”
to
mean
an
entity
that
directly
16
or
indirectly
controls,
is
controlled
with
or
by,
or
is
under
17
common
control
with
another
entity.
18
The
bill
defines
“control”
in
most
instances
to
mean
the
19
ownership,
directly
or
indirectly,
of
50
percent
or
more
of
the
20
voting
power
to
elect
directors.
21
The
bill
takes
effect
upon
enactment
and
applies
22
retroactively
to
January
1,
2015,
for
leases
or
rentals
23
occurring
on
or
after
that
date.
24
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