Bill Text: IA HF2473 | 2017-2018 | 87th General Assembly | Introduced

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Bill Title: A bill for an act modifying the sales and use tax exemption for the sale of certain component parts attached to or services performed on aircraft. (Formerly HF 2069.)

Spectrum: Committee Bill

Status: (Introduced - Dead) 2018-03-26 - Fiscal note. [HF2473 Detail]

Download: Iowa-2017-HF2473-Introduced.html

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House File 2473 - Introduced




                                 HOUSE FILE       
                                 BY  COMMITTEE ON WAYS AND
                                     MEANS

                                 (SUCCESSOR TO HF 2069)

                                      A BILL FOR

  1 An Act modifying the sales and use tax exemption for the sale
  2    of certain component parts attached to or services performed
  3    on aircraft.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    TLSB 5176HV (1) 87
    mm/jh

PAG LIN



  1  1    Section 1.  Section 423.3, subsections 74 and 76, Code 2018,
  1  2 are amended to read as follows:
  1  3    74.  The sales price from the sale or rental of aircraft for
  1  4 use in a scheduled interstate federal aviation administration
  1  5 certificated air carrier operation.
  1  6    76.  The sales price from the sale or rental of tangible
  1  7 personal property permanently affixed or attached as a
  1  8 component part of the aircraft, including but not limited
  1  9 to repair or replacement materials or parts; and the sales
  1 10 price of all services used for aircraft repair, remodeling,
  1 11 and maintenance services when such services are performed on
  1 12 aircraft, aircraft engines, or aircraft component materials or
  1 13 parts. For the purposes of this exemption, "aircraft" means
  1 14 aircraft used in nonscheduled interstate federal aviation
  1 15 administration certificated air carrier operation operating
  1 16 under 14 C.F.R. ch. 1, pt. 135 the same as defined in section
  1 17 328.1.
  1 18    Sec. 2.  Section 423.3, subsection 75, Code 2018, is amended
  1 19 by striking the subsection.
  1 20                           EXPLANATION
  1 21 The inclusion of this explanation does not constitute agreement with
  1 22 the explanation's substance by the members of the general assembly.
  1 23    Current law exempts from the Iowa sales and use tax the
  1 24 sale, rental, or use of aircraft component parts permanently
  1 25 attached to an aircraft, including repair or replacement
  1 26 materials or parts, and repair, remodeling, and maintenance
  1 27 services used on an aircraft, aircraft engine, or aircraft
  1 28 component materials or parts,  provided the aircraft is used
  1 29 in either a scheduled or nonscheduled interstate federal
  1 30 aviation administration (FAA) certified air carrier operation
  1 31 (scheduled or nonscheduled FAA operation).  This bill removes
  1 32 the requirement that the aircraft be used in a scheduled or
  1 33 nonscheduled FAA operation to qualify for the exemption.  The
  1 34 sale, rental, or use of the component parts and services
  1 35 described above will be exempt from the sales and use tax
  2  1 when permanently attached to or performed on any aircraft.
  2  2 The bill defines "aircraft" to mean the same as it does for
  2  3 purposes of Code chapter 328 (aeronautics), which includes any
  2  4 contrivance now known, or hereafter invented, used or designed
  2  5 for navigation of or flight in the air, for the purpose of
  2  6 transporting persons or property, or both.
  2  7    The bill also makes nonsubstantive changes to Code sections
  2  8 423.3(74) and 423.3(75) to strike or move similar language
  2  9 relating to the sales and use tax exemption described in the
  2 10 bill and to the sales and use tax exemption for the sale or
  2 11 rental of aircraft used in a scheduled FAA operation.
       LSB 5176HV (1) 87
       mm/jh