This text of Iowa § 423C.3 (Tax on rental of automobiles — collection and remittance of tax) is published on Counsel Stack Legal Research, covering Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
1.A tax of five percent is imposed upon the rental price of an automobile if the rental
§423C.3, AUTOMOBILE RENTAL EXCISE TAX 2
transaction is subject to the sales tax under chapter 423, subchapter II, or the use tax under
chapter423,subchapterIII. Thetaxshallnotbeimposedonanyrentaltransactionnottaxable
under the state sales tax, as provided in section 423.3, or the state use tax, as provided in
section 423.6, on automobile rental receipts.
2.The tax imposed under subsection 1 shall be collected and remitted to the department
by all persons required to collect state sales and use tax on the rental transaction under
chapter 423.
3.A person is not required to collect and remit the tax imposed under this chapter if the
person meets all of the following requirements:
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1. A tax of five percent is imposed upon the rental price of an automobile if the rental
§423C.3, AUTOMOBILE RENTAL EXCISE TAX 2
transaction is subject to the sales tax under chapter 423, subchapter II, or the use tax under
chapter423,subchapterIII. Thetaxshallnotbeimposedonanyrentaltransactionnottaxable
under the state sales tax, as provided in section 423.3, or the state use tax, as provided in
section 423.6, on automobile rental receipts.
2. The tax imposed under subsection 1 shall be collected and remitted to the department
by all persons required to collect state sales and use tax on the rental transaction under
chapter 423.
3. A person is not required to collect and remit the tax imposed under this chapter if the
person meets all of the following requirements:
a. The person or any affiliate of the person is not an automobile provider.
b. The person or any affiliate of the person facilitates the renting or sharing of an
automobile by doing all of the following:
(1) Thepersonowns,operates,orcontrolsapeer-to-peerautomobilesharingmarketplace
that allows a host or an automobile provider who is not an affiliate of the person to offer or
list an automobile for sharing or rent on the marketplace. For purposes of this paragraph, it
is immaterial whether or not the automobile provider has a tax permit under this chapter or
chapter 423 or whether the automobile is owned by a natural person or by a business entity.
(2) The person or affiliate of the person collects or processes the rental price charged to
the user.
c. The only sales the person and affiliates of the person facilitate that are subject to tax
under chapter 423 are sales of a transportation service under section 423.2, subsection 6,
paragraph “bf”, or section 423.5, subsection 1, paragraph “d”, consisting of the rental of
vehicles subject to registration which are registered for a gross weight of thirteen tons or less
for a period of sixty days or less.
4. Foranyrentaltransactionforwhichapersonisrequiredtoorelectstocollectandremit
the tax under this chapter, the person shall also be liable for the collection and remittance
of any sales or use tax due on that transaction under section 423.2, subsection 6, paragraph
“bf”, or section 423.5, subsection 1, paragraph “d”, notwithstanding any other provision to
the contrary in chapter 423.
5. For any rental transaction for which the person is not required to collect and remit the
taxunderthischapterasprovidedundersubsection3, theautomobileprovidershallbesolely
liable for any amount of uncollected or unremitted tax under this chapter and chapter 423.