Proyectos de ley › 88.ª Asamblea General
Modifying the sales and use tax exemption for the sale of certain component parts attached to or services performed on aircraft
Presentado por el comité Ways and Means de la Cámara
Temas:Taxes
Dónde está ahora
- Hecho: Presentado4 de marzo de 2019
- Hecho: Subcomité28 de enero de 2020
- Hecho: Comité de la Cámara24 de febrero de 2020
- Hecho: Lo aprueba la Cámara5 de marzo de 202089–7
- Se detuvo: Comité del SenadoMurió al terminar la Asamblea General
- Sigue: Lo aprueba el Senado
- Sigue: A gobernador(a)
- Sigue: Firmado como ley
Murió al terminar la sesión La sesión de 2020 terminó el 14 de junio de 2020, la última sesión ordinaria de la Asamblea General. Los proyectos que no pasaron por ambas cámaras murieron. ¿Qué es el embudo (funnel)?
Qué contiene
La explicación oficial está en inglés; todavía no hay resumen en palabras sencillas.
Current law exempts from the Iowa sales and use tax the sale, rental, or use of aircraft component parts permanently attached to an aircraft, including repair or replacement materials or parts, and repair, remodeling, and maintenance services used on an aircraft, aircraft engine, or aircraft component materials or parts, provided the aircraft is used in either a scheduled or nonscheduled interstate federal aviation administration (FAA) certified air carrier operation (scheduled or nonscheduled FAA operation).
Lea la explicación completa
This bill removes the requirement that the aircraft be used in a scheduled or nonscheduled FAA operation to qualify for the exemption. The sale, rental, or use of the component parts and services described above will be exempt from the sales and use tax when permanently attached to or performed on any aircraft. The bill defines “aircraft” to mean the same as it does for purposes of Code chapter 328 (aeronautics), which includes any contrivance now known, or hereafter invented, used or designed for navigation of or flight in the air, for the purpose of transporting persons or property, or both.3(75) to strike or move similar language relating to the sales and use tax exemption described in the bill and to the sales and use tax exemption for the sale or rental of aircraft used in a scheduled FAA operation.
House subcommittee
Named January 28, 2020. On February 6, 2020 it recommended passage.
- Rep. David E. Maxwell R
- Rep. Gaskill
- Rep. Joe Mitchell R
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Nota fiscal
Resumen con IA This bill expands the sales and use tax exemption for aircraft repair and maintenance to include aircraft not used in certified air carrier operations. It is estimated to decrease revenues for the state's General Fund, the Secure an Advanced Vision for Education (SAVE) Fund, and local option sales tax (LOST) revenues. The estimated decreases for fiscal year 2021 are -$542,000 for the General Fund, -$108,000 for the SAVE Fund, and -$83,000 for LOST revenues. (en inglés)2
Lea la nota fiscal (en inglés)
Description
House File 2573 expands the existing aircraft repair and maintenance sales and use tax exemption to include aircraft that are not used in scheduled or nonscheduled interstate Federal Aviation Administration certified air carrier operations.
Background
Iowa Code section 328.20 requires all civilian aircraft owned or operated within the State for more than 30 days to be registered with the Department of Transportation. Fees for registration established in Iowa Code section 328.21 vary based on age and value of the aircraft and range between $35 and $5,000. These fees are deposited into the State Aviation Fund. Nationally, state sales tax laws relating to aircraft maintenance can be broken down into four basic categories:
- States with no sales tax.
- States exempting all aircraft maintenance from sales tax.
- States with a limited sales tax exemption for aircraft maintenance.
- States with a sales tax and no exemption for aircraft maintenance.
Assumptions
- In 2019, there were approximately 2,500 airworthy civilian aircraft registered with the Department of Transportation that had Iowa ownership or likely Iowa ownership. Of these aircraft, 150 (6.0%) had annual registration fees ranging from $3,000 to $5,000; 465 (18.6%) had annual registration fees ranging from $101 to $2,999; and 1,885 (75.4%) had annual registration fees ranging from $35 to $100.
- More expensive aircraft have a higher likelihood of higher maintenance costs. Aircraft in the highest tier of registration fees have estimated annual maintenance costs of $20,000. Aircraft with mid-tier registration fees have annual estimated maintenance costs of $8,000, and those with lowest-tier registration fees have annual estimated maintenance costs of $3,000.
- An unknown number of aircraft owners take the aircraft for scheduled repairs to states that have no sales tax or already have an aircraft maintenance sales tax exemption enacted. Taking repairs out of state is more likely to be cost-effective for owners of aircraft with higher maintenance costs. Therefore, scheduled repairs on an estimated 20.0% of the highest maintenance cost aircraft, and on an estimated 10.0% of the mid-tier and lowest-tier maintenance cost aircraft, are assumed to not take place in Iowa.
Fiscal Impact
House File 2573 is estimated to decrease sales and use tax revenues to the General Fund, the Secure an Advanced Vision for Education (SAVE) Fund, and local option sales tax (LOST) revenues, as presented in the following table.
Sources
- Department of Transportation
- Department of Revenue
- Iowa Public Airports Association
- Aircraft Owners and Pilots Association
- LSA analysis and calculations
- Sales Tax Exemption, Aircraft Parts and Service · 3 de marzo de 2020
Lo que cambia del Código de Iowa (Iowa Code)
Modifica§423.3
Cabildeo
9 a favor · 1 en contra · 5 indecisos · Quiénes →
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88th General Assembly
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Earlier and later bills are matched by wording or an identical title.
Similar bills
- SF 109 Modifying the sales and use tax exemption for the sale of certain component parts attached…89th General Assembly · In committeeNearly identical
Matched by wording or an identical title.