A bill for an act exempting remotely piloted aircraft used directly and primarily for agricultural purposes from aircraft registration requirements and sales tax.

Senate

File

2038

-

Introduced

SENATE

FILE

2038

BY

ROZENBOOM

A

BILL

FOR

An

Act

exempting

remotely

piloted

aircraft

used

directly

1

and

primarily

for

agricultural

purposes

from

aircraft

2

registration

requirements

and

sales

tax.

3

BE

IT

ENACTED

BY

THE

GENERAL

ASSEMBLY

OF

THE

STATE

OF

IOWA:

4

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S.F.

2038

Section

1.

Section

328.35,

subsection

1,

Code

2026,

is

1

amended

by

adding

the

following

new

paragraph:

2

NEW

PARAGRAPH

.

g.

A

remotely

piloted

aircraft,

as

defined

3

in

section

715E.1,

used

directly

and

primarily

for

agricultural

4

purposes.

5

Sec.

2.

Section

423.3,

Code

2026,

is

amended

by

adding

the

6

following

new

subsection:

7

NEW

SUBSECTION

.

7A.

The

sales

price

of

a

remotely

piloted

8

aircraft,

as

defined

in

section

715E.1,

used

directly

and

9

primarily

for

agricultural

purposes.

10

EXPLANATION

11

The

inclusion

of

this

explanation

does

not

constitute

agreement

with

12

the

explanation’s

substance

by

the

members

of

the

general

assembly.

13

Under

current

law,

an

owner

of

a

civil

aircraft

who

resides

14

in

Iowa,

or

who

operates

or

otherwise

controls

the

aircraft

15

within

the

boundaries

of

Iowa

for

a

period

of

more

than

30

16

days,

must

register

the

aircraft

annually

with

the

department

17

of

transportation

(DOT).

Annual

aircraft

registration

fees

18

are

paid

to

the

DOT

and

deposited

in

the

state

aviation

fund.

19

The

fee

for

the

first

year

of

aircraft

registration

is

1

20

percent

of

the

manufacturer’s

list

price

of

the

aircraft.

Each

21

year

thereafter,

the

fee

is

reduced

by

0.25

percent

of

the

22

manufacturer’s

list

price

of

the

aircraft

until

the

fee

is

set

23

at

0.25

percent

for

the

fourth

and

subsequent

registration

24

years.

The

minimum

fee

is

$35

and

the

maximum

fee

is

$5,000.

25

Also

under

current

law,

there

is

imposed

a

tax

of

6

percent

26

upon

the

sales

price

of

all

sales

of

tangible

personal

property

27

sold

at

retail

in

the

state

to

consumers

or

users,

unless

28

otherwise

provided

in

Code

chapter

423.

29

This

bill

exempts

remotely

piloted

aircraft

used

directly

30

and

primarily

for

agricultural

purposes

from

the

registration

31

requirements

for

aircraft

under

Code

chapter

328

and

from

the

32

sales

tax.

By

operation

of

Code

section

423.6,

an

item

exempt

33

from

the

sales

tax

is

also

exempt

from

the

use

tax

imposed

34

in

Code

section

423.5.

For

purposes

of

the

bill,

“remotely

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S.F.

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piloted

aircraft”

means

a

self-propelled

vehicle

used

for

1

navigation

and

flight,

that

is

controlled

by

the

use

of

an

2

electronic

system

and

is

not

designed

to

carry

a

human.

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