Senate Study Bill 1224 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED DEPARTMENT OF REVENUE BILL) A BILL FOR An Act relating to the policy administration of the tax and 1 related laws by the department of revenue. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1309XD (2) 86 mm/sc

S.F. _____ H.F. _____ DIVISION I 1 SALES AND USE TAXES 2 Section 1. Section 423.3, subsection 8, paragraph d, Code 3 2015, is amended to read as follows: 4 d. (1) For purposes of this subsection , the following 5 items are exempt under paragraph “a” when used primarily in 6 agricultural production: 7 (a) A diesel fuel trailer, regardless of the vehicle to 8 which it is to be attached. 9 (b) A seed tender, regardless of the vehicle to which it is 10 to be attached. 11 (c) An all-terrain vehicle. 12 (d) An off-road utility vehicle. 13 (2) For purposes of this paragraph: 14 (a) “All-terrain vehicle” means the same as defined in 15 section 321I.1. 16 (a) (b) “Fuel trailer” means a trailer that holds dyed 17 diesel fuel or diesel exhaust fluid and that is used to 18 transport such fuel or fluid to a self-propelled implement of 19 husbandry. 20 (c) “Off-road utility vehicle” means the same as defined in 21 section 321I.1. 22 (b) (d) “Seed tender” means a trailer that holds seed and 23 that is used to transport seed to an implement of husbandry and 24 load seed into an implement of husbandry. 25 DIVISION II 26 FLOOD MITIGATION BOARD 27 Sec. 2. Section 418.5, subsections 1 and 6, Code 2015, are 28 amended to read as follows: 29 1. The flood mitigation board is established consisting 30 of nine voting members and four five ex officio, nonvoting 31 members, and is located for administrative purposes within 32 the department. The director of the department shall provide 33 office space, staff assistance, and necessary supplies and 34 equipment for the board. The director shall budget funds to 35 -1- LSB 1309XD (2) 86 mm/sc 1/ 3

S.F. _____ H.F. _____ pay the necessary expenses of the board. In performing its 1 functions, the board is performing a public function on behalf 2 of the state and is a public instrumentality of the state. 3 6. The board’s ex officio membership shall include be 4 comprised of the following: 5 a. four Four members of the general assembly with one 6 each appointed by the majority leader of the senate, the 7 minority leader of the senate, the speaker of the house of 8 representatives, and the minority leader of the house of 9 representatives. A legislative member serves for a term as 10 provided in section 69.16B in an ex officio, nonvoting capacity 11 and is eligible for per diem and expenses as provided in 12 section 2.10 . 13 b. The director of revenue or the director’s designee. 14 EXPLANATION 15 The inclusion of this explanation does not constitute agreement with 16 the explanation’s substance by the members of the general assembly. 17 This bill relates to the policy administration of the tax and 18 related laws by the department of revenue. 19 DIVISION I —— SALES AND USE TAXES. Division I exempts 20 the sales price of all-terrain vehicles and off-road utility 21 vehicles used primarily in agricultural production from the 22 sales and use tax. Under current law, such vehicles are not 23 exempt from sales and use tax unless they are directly and 24 primarily used in production of agricultural products. 25 “All-terrain vehicle” means a motorized vehicle with not 26 less than three and not more than six nonhighway tires that 27 is limited in engine displacement to less than 1,000 cubic 28 centimeters and in total dry weight to less than 1,200 pounds 29 and that has a seat or saddle designed to be straddled by the 30 operator and handlebars for steering control. 31 “Off-road utility vehicle” means a motorized vehicle with 32 not less than four and not more than eight nonhighway tires or 33 rubberized tracks that has a seat that is of bucket or bench 34 design, not intended to be straddled by the operator, and a 35 -2- LSB 1309XD (2) 86 mm/sc 2/ 3

S.F. _____ H.F. _____ steering wheel or control levers for control. 1 By operation of Code section 423.6, an item exempt from the 2 imposition of the sales tax is also exempt from the use tax 3 imposed in Code section 423.5. 4 DIVISION II —— FLOOD MITIGATION BOARD. Division II adds 5 the director of revenue, or a designee of the director, as an 6 ex officio, nonvoting member of the flood mitigation board 7 created in Code chapter 418. The flood mitigation board is 8 currently composed of nine voting members and four ex officio, 9 nonvoting members who are members of the general assembly, and 10 is responsible for overseeing the flood mitigation program 11 administered by the department of homeland security and 12 emergency management. 13 -3- LSB 1309XD (2) 86 mm/sc 3/ 3