Bill Text: IA SSB3225 | 2013-2014 | 85th General Assembly | Introduced


Bill Title: A study bill for an act relating to state regulatory matters by exempting from sales tax the furnishing of certain environmental testing services, modifying the registration and regulation of motorsports recreational vehicles, recreational vehicle operators, and recreational vehicle cargo, and including fees, penalties, and effective date provisions.

Spectrum: Unknown

Status: (N/A - Dead) 2014-05-01 - In Ways and Means [SSB3225 Detail]

Download: Iowa-2013-SSB3225-Introduced.html
Senate Study Bill 3225 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON BOLKCOM) A BILL FOR An Act relating to state regulatory matters by exempting from 1 sales tax the furnishing of certain environmental testing 2 services, modifying the registration and regulation of 3 motorsports recreational vehicles, recreational vehicle 4 operators, and recreational vehicle cargo, and including 5 fees, penalties, and effective date provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 6234XC (3) 85 mm/jp
S.F. _____ DIVISION I 1 ENVIRONMENTAL TESTING SALES TAX EXEMPTION 2 Section 1. Section 423.2, subsection 6, paragraph a, Code 3 2014, is amended to read as follows: 4 a. The sales price of any of the following enumerated 5 services is subject to the tax imposed by subsection 6 5 : alteration and garment repair; armored car; vehicle repair; 7 battery, tire, and allied; investment counseling; service 8 charges of all financial institutions; barber and beauty; 9 boat repair; vehicle wash and wax; campgrounds; carpentry; 10 roof, shingle, and glass repair; dance schools and dance 11 studios; dating services; dry cleaning, pressing, dyeing, and 12 laundering; electrical and electronic repair and installation; 13 excavating and grading; farm implement repair of all kinds; 14 flying service; furniture, rug, carpet, and upholstery 15 repair and cleaning; fur storage and repair; golf and country 16 clubs and all commercial recreation; gun and camera repair; 17 house and building moving; household appliance, television, 18 and radio repair; janitorial and building maintenance or 19 cleaning; jewelry and watch repair; lawn care, landscaping, 20 and tree trimming and removal; limousine service, including 21 driver; machine operator; machine repair of all kinds; motor 22 repair; motorcycle, scooter, and bicycle repair; oilers and 23 lubricators; office and business machine repair; painting, 24 papering, and interior decorating; parking facilities; pay 25 television; pet grooming; pipe fitting and plumbing; wood 26 preparation; executive search agencies; private employment 27 agencies, excluding services for placing a person in employment 28 where the principal place of employment of that person is to 29 be located outside of the state; reflexology; security and 30 detective services, excluding private security and detective 31 services furnished by a peace officer with the knowledge and 32 consent of the chief executive officer of the peace officer’s 33 law enforcement agency; sewage services for nonresidential 34 commercial operations; sewing and stitching; shoe repair 35 -1- LSB 6234XC (3) 85 mm/jp 1/ 10
S.F. _____ and shoeshine; sign construction and installation; storage 1 of household goods, mini-storage, and warehousing of raw 2 agricultural products; swimming pool cleaning and maintenance; 3 tanning beds or salons; taxidermy services; telephone 4 answering service; test laboratories, including mobile testing 5 laboratories and field testing by testing laboratories, 6 and excluding tests on humans or animals and excluding 7 environmental testing services ; termite, bug, roach, and 8 pest eradicators; tin and sheet metal repair; transportation 9 service consisting of the rental of recreational vehicles or 10 recreational boats, or the rental of motor vehicles subject 11 to registration which are registered for a gross weight of 12 thirteen tons or less for a period of sixty days or less, or 13 the rental of aircraft for a period of sixty days or less; 14 Turkish baths, massage, and reducing salons, excluding services 15 provided by massage therapists licensed under chapter 152C ; 16 water conditioning and softening; weighing; welding; well 17 drilling; wrapping, packing, and packaging of merchandise other 18 than processed meat, fish, fowl, and vegetables; wrecking 19 service; wrecker and towing. 20 Sec. 2. Section 423.3, Code 2014, is amended by adding the 21 following new subsection: 22 NEW SUBSECTION . 101. The sales price from the furnishing 23 of environmental testing services performed at a laboratory, 24 in the field, or by a mobile testing service. For purposes 25 of this subsection, “environmental testing” means the physical 26 or chemical analysis of soil, water, wastewater, air, or 27 solid waste performed in order to ascertain the presence of 28 environmental contamination or degradation. 29 Sec. 3. EFFECTIVE DATE. This division of this Act takes 30 effect July 1, 2015. 31 DIVISION II 32 MOTORSPORTS RECREATIONAL VEHICLES 33 Sec. 4. Section 321.1, subsection 8, Code 2014, is amended 34 by adding the following new paragraph: 35 -2- LSB 6234XC (3) 85 mm/jp 2/ 10
S.F. _____ NEW PARAGRAPH . i. A person operating a motorsports 1 recreational vehicle is not a chauffeur. 2 Sec. 5. Section 321.1, subsection 36C, Code 2014, is amended 3 by adding the following new paragraph: 4 NEW PARAGRAPH . e. “Motorsports recreational vehicle” means 5 a modified motor vehicle used for the purpose of participating 6 in motorsports competitions and consisting of a conversion unit 7 mounted on a truck tractor or motor truck chassis such that the 8 motor vehicle can be used as a conveyance on the highway and as 9 a temporary or recreational dwelling. The motor vehicle must 10 have at least four of the permanently installed systems listed 11 in paragraph “d” , two of which shall be systems specified in 12 paragraph “d” , subparagraph (1), (4), or (5). 13 Sec. 6. Section 321.109, subsection 1, paragraph a, Code 14 2014, is amended to read as follows: 15 a. The annual fee for all motor vehicles including vehicles 16 designated by manufacturers as station wagons, 1993 and 17 subsequent model year multipurpose vehicles, and 2010 and 18 subsequent model year motor trucks with an unladen weight of 19 ten thousand pounds or less, except motor trucks registered 20 under section 321.122 , business-trade trucks, special trucks, 21 motor homes, motorsports recreational vehicles, ambulances, 22 hearses, motorcycles, motorized bicycles, and 1992 and older 23 model year multipurpose vehicles, shall be equal to one 24 percent of the value as fixed by the department plus forty 25 cents for each one hundred pounds or fraction thereof of 26 weight of vehicle, as fixed by the department. The weight 27 of a motor vehicle, fixed by the department for registration 28 purposes, shall include the weight of a battery, heater, 29 bumpers, spare tire, and wheel. Provided, however, that for 30 any new vehicle purchased in this state by a nonresident 31 for removal to the nonresident’s state of residence the 32 purchaser may make application to the county treasurer in 33 the county of purchase for a transit plate for which a fee 34 of ten dollars shall be paid. And provided, however, that 35 -3- LSB 6234XC (3) 85 mm/jp 3/ 10
S.F. _____ for any used vehicle held by a registered dealer and not 1 currently registered in this state, or for any vehicle held 2 by an individual and currently registered in this state, 3 when purchased in this state by a nonresident for removal to 4 the nonresident’s state of residence, the purchaser may make 5 application to the county treasurer in the county of purchase 6 for a transit plate for which a fee of three dollars shall 7 be paid. The county treasurer shall issue a nontransferable 8 certificate of registration for which no refund shall be 9 allowed; and the transit plates shall be void thirty days 10 after issuance. Such purchaser may apply for a certificate 11 of title by surrendering the manufacturer’s or importer’s 12 certificate or certificate of title, duly assigned as provided 13 in this chapter . In this event, the treasurer in the county 14 of purchase shall, when satisfied with the genuineness and 15 regularity of the application, and upon payment of a fee of 16 twenty dollars, issue a certificate of title in the name and 17 address of the nonresident purchaser delivering the title 18 to the owner. If there is a security interest noted on the 19 title, the county treasurer shall mail to the secured party an 20 acknowledgment of the notation of the security interest. The 21 county treasurer shall not release a security interest that 22 has been noted on a title issued to a nonresident purchaser 23 as provided in this paragraph. The application requirements 24 of section 321.20 apply to a title issued as provided in this 25 subsection , except that a natural person who applies for a 26 certificate of title shall provide either the person’s social 27 security number, passport number, or driver’s license number, 28 whether the license was issued by this state, another state, or 29 another country. The provisions of this subsection relating to 30 multipurpose vehicles are effective for all 1993 and subsequent 31 model years. The annual registration fee for multipurpose 32 vehicles that are 1992 model years and older shall be in 33 accordance with section 321.124 . 34 Sec. 7. Section 321.124, Code 2014, is amended by adding the 35 -4- LSB 6234XC (3) 85 mm/jp 4/ 10
S.F. _____ following new subsection: 1 NEW SUBSECTION . 4. a. The annual registration fee 2 for a motorsports recreational vehicle is four hundred 3 dollars. For purposes of determining that portion of the 4 annual registration fee which is based upon the value of the 5 motorsports recreational vehicle, sixty percent of the annual 6 fee is attributable to the value of the vehicle. The owner of 7 a motor vehicle registered under this subsection shall certify 8 at the time of registration or renewal of registration that 9 the motor vehicle is used for the purpose of participating in 10 motorsports competition. 11 b. If the department determines by audit or other means that 12 a person registered a vehicle as a motorsports recreational 13 vehicle that is not qualified for such registration, the person 14 shall be required to pay the difference between the regular 15 annual registration fees owed for the vehicle for each year the 16 vehicle was registered in violation of this section and the 17 fees actually paid. 18 c. If the department determines by audit or other 19 means that the person knowingly registered a vehicle as a 20 motorsports recreational vehicle that is not qualified for such 21 registration, the person shall be required to pay a penalty 22 for improper registration in the amount of seven hundred fifty 23 dollars for each registration year in which the vehicle was 24 registered in violation of this section, not to exceed two 25 thousand two hundred fifty dollars. 26 Sec. 8. Section 321.152, subsection 1, Code 2014, is amended 27 by adding the following new paragraph: 28 NEW PARAGRAPH . g. Twenty-five percent of each penalty 29 collected for improper motorsports recreational vehicle 30 registration under section 321.124, subsection 4. 31 Sec. 9. Section 321.284A, subsection 2, Code 2014, is 32 amended to read as follows: 33 2. This section does not apply to a passenger being 34 transported in a motor vehicle designed, maintained, or used 35 -5- LSB 6234XC (3) 85 mm/jp 5/ 10
S.F. _____ primarily for the transportation of persons for compensation, 1 or a passenger being transported in the living quarters of a 2 motor home, motorsports recreational vehicle, manufactured or 3 mobile home, travel trailer, or fifth-wheel travel trailer. 4 Sec. 10. Section 321.310, subsections 1 and 2, Code 2014, 5 are amended to read as follows: 6 1. A motor vehicle shall not tow a four-wheeled trailer with 7 a steering axle, or more than one trailer or semitrailer, or 8 both in combination. However, this section does not apply to 9 a motor home, motorsports recreational vehicle, multipurpose 10 vehicle, motor truck, truck tractor or road tractor nor to 11 a farm tractor towing a four-wheeled trailer, nor to a farm 12 tractor or motor vehicle towing implements of husbandry, nor to 13 a wagon box trailer used by a farmer in transporting produce, 14 farm products , or supplies hauled to and from market. 15 2. Any four-wheeled trailer towed by a truck tractor or road 16 tractor shall be registered under the semitrailer provisions 17 of section 321.123 , ; provided , however, that the provisions 18 of this section subsection shall not be applicable apply to 19 motor vehicles drawing wagon box trailers used by a farmer 20 in transporting produce, farm products , or supplies hauled 21 to and from market , or to a four-wheeled trailer towed by a 22 motorsports recreational vehicle . 23 Sec. 11. Section 321.446, subsection 3, paragraph b, Code 24 2014, is amended to read as follows: 25 b. The transportation of children in 1965 model year or 26 older vehicles, authorized emergency vehicles, buses, or motor 27 homes, or motorsports recreational vehicles except when a child 28 is transported in a motor home’s or motorsports recreational 29 vehicle’s passenger seat situated directly to the driver’s 30 right. 31 Sec. 12. Section 321.450, Code 2014, is amended by adding 32 the following new subsection: 33 NEW SUBSECTION . 6. Notwithstanding other provisions of 34 this section, rules adopted under this section applicable to 35 -6- LSB 6234XC (3) 85 mm/jp 6/ 10
S.F. _____ the transportation of any fuel used in race car engines shall 1 not apply to the transportation of such fuel if the fuel is 2 contained in the fuel cells of a race car being transported in 3 a trailer and the fuel cells are certified by SFI foundation, 4 inc. 5 Sec. 13. Section 321.454, Code 2014, is amended to read as 6 follows: 7 321.454 Width of vehicles. 8 The total outside width of a vehicle or the load on 9 the vehicle shall not exceed eight feet six inches. This 10 limitation on the total outside width of a vehicle or the load 11 on the vehicle does not include safety equipment on a vehicle 12 or incidental appurtenances or retracted awnings on motor 13 homes, motorsports recreational vehicles, travel trailers, or 14 fifth-wheel travel trailers if the incidental appurtenance or 15 retracted awning is less than six inches in width. However, 16 if hay, straw, or stover is moved on an implement of husbandry 17 and the total width of load of the implement of husbandry 18 exceeds eight feet six inches, the implement of husbandry is 19 not subject to the permit requirements of chapter 321E . If 20 hay, straw, or stover is moved on any other vehicle subject to 21 registration, the moves are subject to the permit requirements 22 for transporting loads exceeding eight feet six inches in width 23 as required under chapter 321E . 24 Sec. 14. Section 321.457, subsection 2, paragraph j, Code 25 2014, is amended to read as follows: 26 j. A motor home or motorsports recreational vehicle shall 27 not have an overall length, excluding front and rear bumpers 28 and safety equipment, in excess of forty-five feet. 29 Sec. 15. Section 321.457, subsection 2, Code 2014, is 30 amended by adding the following new paragraph: 31 NEW PARAGRAPH . o. Notwithstanding any other provision of 32 this chapter, and to the extent allowed under federal law, a 33 combination of two vehicles coupled together, one of which is 34 a motorsports recreational vehicle, shall not have an overall 35 -7- LSB 6234XC (3) 85 mm/jp 7/ 10
S.F. _____ length in excess of eighty-five feet. 1 Sec. 16. Section 322.2, subsection 11, Code 2014, is amended 2 to read as follows: 3 11. “Manufacturer” means any person engaged in the business 4 of fabricating or assembling motor vehicles. “Manufacturer” 5 does not include a person who converts, modifies, or alters a 6 completed motor vehicle manufactured by another person or a 7 person who assembles a glider kit vehicle as defined in section 8 321.1 . “Manufacturer” includes a person who uses a completed 9 motor vehicle manufactured by another person to construct 10 a class “B” motor home as defined in section 321.124 or a 11 motorsports recreational vehicle as defined in section 321.1 . 12 EXPLANATION 13 The inclusion of this explanation does not constitute agreement with 14 the explanation’s substance by the members of the general assembly. 15 This bill relates to state regulatory matters. 16 ENVIRONMENTAL TESTING SALES TAX EXEMPTION. Division I of 17 the bill provides a sales tax exemption for the furnishing of 18 environmental testing services performed at a laboratory, in 19 the field, or by a mobile testing service. “Environmental 20 testing” means the physical or chemical analysis of soil, 21 water, wastewater, air, or solid waste performed in order 22 to ascertain the presence of environmental contamination or 23 degradation. 24 By operation of Code section 423.6, an item exempt from the 25 imposition of the sales tax is also exempt from the use tax 26 imposed in Code section 423.5. 27 The division takes effect July 1, 2015. 28 MOTORSPORTS RECREATIONAL VEHICLES. Division II of the 29 bill establishes a new motorsports recreational vehicle 30 classification for purposes of motor vehicle regulation and 31 driver licensing. The bill defines “motorsports recreational 32 vehicle” as a modified motor vehicle used for the purpose 33 of participating in motorsports competitions, consisting of 34 a conversion unit mounted on a truck tractor or motor truck 35 -8- LSB 6234XC (3) 85 mm/jp 8/ 10
S.F. _____ chassis, and containing systems similar to the systems required 1 in a motor home, so that the motor vehicle can be used as a 2 conveyance on the highway and as a temporary or recreational 3 dwelling. 4 The annual registration fee for a motorsports recreational 5 vehicle is $400. At the time of registration or registration 6 renewal, the owner must certify that the vehicle is used for 7 the purpose of participating in motorsports competitions. If 8 the department of transportation determines that a person 9 registered a vehicle as a motorsports recreational vehicle that 10 was not qualified for such registration, the person shall be 11 required to pay the difference between the regular registration 12 fee for the vehicle and the fee actually paid for each year 13 the vehicle was improperly registered. In addition, the 14 bill imposes a penalty of $750 for each year the vehicle was 15 improperly registered, not to exceed $2,250. From each penalty 16 collected by a county treasurer for improper registration of 17 a motorsports recreational vehicle, the county shall retain 18 25 percent of the penalty for deposit in the county’s general 19 fund. 20 The bill specifies that a person operating a motorsports 21 recreational vehicle is not a chauffeur. 22 Current motor vehicle provisions applicable to motor homes 23 are amended to apply to motorsports recreational vehicles as 24 well. These provisions include an exception to open-container 25 restrictions for a passenger being transported in the living 26 quarters of a motorsports recreational vehicle; child restraint 27 requirements for a child seated directly to the driver’s 28 right; the exclusion of incidental appurtenances or retracted 29 awnings from vehicle width limitations; and an exemption from 30 restrictions on towing a four-wheeled trailer with a steering 31 axle or more than one trailer or semitrailer. The bill states 32 that a four-wheeled trailer towed by a motorsports recreational 33 vehicle is not required to be registered as a semitrailer. 34 The bill limits the length of a motorsports recreational 35 -9- LSB 6234XC (3) 85 mm/jp 9/ 10
S.F. _____ vehicle, excluding front and rear bumpers and safety equipment, 1 to not more than 45 feet. To the extent allowed under federal 2 law, the maximum length for a combination of two vehicles 3 coupled together, one of which is a motorsports recreational 4 vehicle, is 85 feet. 5 Under current law, the department of transportation has 6 adopted rules, in compliance with federal regulations, 7 relating to the transportation of hazardous materials. The 8 bill provides that rules applicable to the transportation 9 of any fuel used in race car engines shall not apply to the 10 transportation of fuel contained in the fuel cells of a race 11 car being transported in a trailer if the fuel cells are 12 certified by SFI foundation, inc. 13 The bill amends the definition of “manufacturer” to include 14 a person who uses a completed motor vehicle manufactured by 15 another person to construct a motorsports recreational vehicle. 16 The definition is applicable to the licensing and regulation 17 of motor vehicle manufacturers, distributors, wholesalers, and 18 dealers. 19 -10- LSB 6234XC (3) 85 mm/jp 10/ 10
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