Iowa Code 423.26 – Vehicles subject only to the issuance of title — vehicle lease transactions not requiring title or registration
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1. a. The use tax imposed upon the use of vehicles subject only to the issuance of a certificate of title shall be paid by the owner of the vehicle to the county treasurer or the state department of transportation from whom the certificate of title is obtained. A certificate of title shall not be issued until the tax has been paid. The county treasurer or the state department of transportation shall require every applicant for a certificate of title to supply information as the county treasurer or the director deems necessary as to the time of purchase, the purchase price, and other information relative to the purchase of the vehicle. On or before the tenth day of each month, the county treasurer or the state department of transportation shall remit to the department the amount of the taxes collected during the preceding month.
b. A person who willfully makes a false statement in regard to the purchase price of a vehicle subject to taxation under this subsection is guilty of a fraudulent practice. A person who willfully makes a false statement in regard to the purchase price of such a vehicle with the intent to evade the payment of tax shall be assessed a penalty of seventy-five percent of the amount of tax unpaid and required to be paid on the actual purchase price less trade-in allowance.
Terms Used In Iowa Code 423.26
- Agreement: means the streamlined sales and use tax agreement authorized by subchapter IV of this chapter to provide a mechanism for establishing and maintaining a cooperative, simplified system for the application and administration of sales and use taxes. See Iowa Code 423.1
- Certificate of title: means a certificate of title issued for a vehicle or for manufactured housing under chapter 321. See Iowa Code 423.1
- Department: means the department of revenue. See Iowa Code 423.1
- following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- month: means a calendar month, and the word "year" and the abbreviation "A. See Iowa Code 4.1
- Owner: means any of the following:a. See Iowa Code 425A.2
- Person: means any individual, firm, association, partnership, joint stock company, joint adventure, corporation, trustee, agency, or receiver, or any legal representative of any of the foregoing. See Iowa Code 453A.42
- Person: means an individual, trust, estate, fiduciary, partnership, limited liability company, limited liability partnership, corporation, or any other legal entity. See Iowa Code 423.1
- Purchase: means any transfer, exchange, or barter, conditional or otherwise, in any manner or by any means whatsoever, for a consideration. See Iowa Code 423.1
- Purchase price: means the same as "sales price" as defined in this section. See Iowa Code 423.1
- State: means any state of the United States, the District of Columbia, and Puerto Rico. See Iowa Code 423.1
- Use: means the exercise of any right or power incidental to the ownership of tobacco products. See Iowa Code 453A.42
- Use: means and includes the exercise by any person of any right or power over or access to tangible personal property or a specified digital product incident to the ownership of that property, or any right or power over or access to the product or result of a service. See Iowa Code 423.1
- Use tax: means the tax levied under subchapter III of this chapter. See Iowa Code 423.1
2. a. The use tax imposed upon the use of leased vehicles if the lease transaction does not require titling or registration of the vehicle shall be remitted to the department. Tax and the reporting of tax due to the department shall be remitted on or before fifteen days from the last day of the month that the tax becomes due. Failure to timely report or remit any of the tax when due shall result in a penalty and interest being imposed on the tax due pursuant to section 423.40, subsection 1, and section 423.42, subsection 1.b. The amount subject to tax shall be computed on each separate lease transaction by taking the total of the lease payments, plus the down payment, and excluding all of the following:(1) Title fee.(2) Registration fees.(3) Use tax pursuant to this subsection.(4) Federal excise taxes attributable to the sale of the vehicle to the owner or to the lease of the vehicle by the owner.(5) Optional service or warranty contracts subject to tax pursuant to section 423.2, subsection 1.(6) Insurance.(7) Manufacturer’s rebate.(8) Refundable deposit.(9) Finance charges, if any, on items listed in subparagraphs (1) through (8).c. If any or all of the items in paragraph “b”, subparagraphs (1) through (8) are excluded from the taxable lease price, the owner shall maintain adequate records of the amounts of those items. If the parties to a lease enter into an agreement providing that the tax imposed under this subsection is to be paid by the lessee or included in the monthly lease payments to be paid by the lessee, the total cost of the tax shall not be included in the computation of lease price for the purpose of taxation under this subsection.