Bills › 90th General Assembly
Relating to transactions involving used catalytic converters, and providing fees
Sponsored by the House Ways and Means Committee
Topics:Business & economyState governmentTaxes
Same legislation: HSB 234
Where it is now
- Done: IntroducedMarch 28, 2023
- Done: SubcommitteeMarch 28, 2023
- Done: House committeeApril 10, 2023
- Done: Passes the HouseApril 13, 202399–0
- Stopped: Senate committeeDied when the General Assembly ended
- Next: Passes the Senate
- Next: To the Governor
- Next: Signed into law
Died when the session ended The 2024 session adjourned on April 19, 2024, the General Assembly’s last regular session. Bills that didn’t pass both chambers died. What’s a funnel?
What’s in it
AI summary People selling used catalytic converters can now choose to show a business license or a registration certificate instead of just a sales tax permit. The law also allows people to register with the Department of Revenue as authorized sellers or purchasers for a $100 fee. Additionally, individuals selling a catalytic converter can provide a signed statement proving they own it instead of showing a receipt or junking certificate.1
Read the official explanation
27A, in which the seller of a used catalytic converter operates a business at a fixed location in this state, the seller must provide to the purchaser a copy of the seller’s valid sales tax permit issued pursuant to Code chapter 423. This bill authorizes such a seller to alternatively provide a copy of the seller’s valid business license or permit or a copy of the person’s certificate of registration as an authorized seller. The seller of a catalytic converter operating a business at a fixed location in another state is authorized to provide a copy of the person’s valid business license or permit from the other state under current law. The bill adds persons registered as an authorized seller or authorized purchaser to the list of persons eligible to conduct a business transaction involving a used catalytic converter. A person may become an authorized seller or purchaser by registering as such with the department of revenue (DOR). The registration fee is $100 and the authorization is valid for one year. The fee must be deposited in the general fund of the state. A person who conducts a business transaction on behalf of another person is considered an authorized seller or purchaser if the other person on whose behalf the person is conducting a transaction is an authorized seller or purchaser. DOR is required to adopt administrative rules including but not limited to rules requiring a person applying for registration as an authorized seller or purchaser to provide the person’s residential address or business address at a fixed location and rules providing for issuance of a certificate of registration as an authorized seller or purchaser. For transactions other than business transactions under current law, the person selling the used catalytic converter is required to provide to the purchaser an original receipt or invoice for a replacement catalytic converter purchased fewer than days before the person sells the replaced catalytic converter, or a junking certificate for a vehicle that was issued fewer than days before the person sells the catalytic converter. The bill authorizes a seller to provide a signed affidavit attesting to the seller’s valid ownership of the catalytic converter instead of the original receipt, invoice, or junking certificate.27A.27A is subject to a civil penalty ranging from $1,000 to $10,000 based on the number of violations that occur within a two-year period.27A(3) is evidence from which the court or jury may infer culpability relating to the theft of a catalytic converter.27A to be subject to the corresponding civil or criminal penalty, as applicable.
Senate subcommittee
Named April 17, 2024. It hasn’t reported yet.
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
Fiscal note
Cost: up to $100,000 Compare with other bills
AI summary This bill allows people who buy or sell used catalytic converters to register as authorized sellers or purchasers with the Iowa Department of Revenue. The state expects a one-time administrative and IT cost of approximately $100,000, but the overall annual impact on the General Fund from the $100 registration fees cannot be determined at this time.3
Read the fiscal note
Description
House File 713 allows for sellers or purchasers of catalytic converters to register as an authorized seller or authorized purchaser with the Iowa Department of Revenue (IDR) and adds persons registered as an authorized seller or authorized purchaser to the list of persons eligible to conduct a business transaction involving a used catalytic converter. The registration fee is $100 and is valid for one year. All fees are deposited into the General Fund. The IDR is required to adopt administrative rules to implement and administer this registration process. The Bill also authorizes the seller of a used catalytic converter who operates a business at a fixed location in the State to provide a copy of the seller’s business license or permit or a copy of the person’s certificate of registration as an authorized seller. For transactions other than business transactions for used catalytic converters, the Bill authorizes sellers to provide a signed affidavit attesting to the seller’s valid ownership of the catalytic converter instead of the original receipt, invoice, or junking certificate.
Lastly, the Bill adds that a person must intentionally violate Iowa Code section 714.27A to be subject to the civil or criminal penalties outlined in the chapter.
Background
2022 Iowa Acts, chapter 1092, created provisions for used catalytic converter transactions in the State. Under current law, a seller of a used catalytic converter who operates a business at a fixed location in the State must provide a copy of a valid sales tax permit. Also under current law, a seller of a catalytic converter operating a business at a fixed location in another state is authorized to provide a copy of a valid business license or permit from the other state. A person who violates Iowa Code section 714.27A is subject to a civil penalty of $1,000 for an initial violation, $5,000 for a second violation within two years, and $10,000 for a third or subsequent violation within two years.
Assumptions
- The IDR will incur administrative and information technology (IT) costs to establish a system for authorized sellers or purchasers to register with the IDR.
- It is unknown how many individuals may register with the IDR as an authorized seller or purchaser.
Fiscal Impact
According to the IDR, the estimated administrative and IT cost to develop a registration system is approximately $100,000. This is a one-time cost.
There will also be a positive annual impact to the General Fund when individuals register with the IDR and remit the $100 registration fee. However, the overall fiscal impact cannot be determined at this time.
Source
- Iowa Department of Revenue
- Used Catalytic Converter Transactions · April 12, 2023 · $100,000
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90th General Assembly
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- HSB 751 HSB 75190th General Assembly · Renumbered as HF 2707Very similar
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