This bill introduces a sales and use tax exemption for child restraint systems, which are defined as specially designed seating systems that meet federal safety standards. Specifically, it amends Section 423.3 of the Iowa Code to include a new subsection that exempts the sales price of child restraint systems from taxation. Additionally, it clarifies the definitions of "automobile" and "child restraint system" by referencing existing definitions in the Iowa Code.

Furthermore, the bill mandates that the value of any child restraint systems present in an automobile at the time of a partial or total loss must be included in insurance settlements. This requirement is outlined in a new section, 507B.4D, and applies to automobile losses occurring on or after July 1, 2025. The bill aims to ensure that the value of child restraint systems is recognized in both tax exemptions and insurance settlements, thereby promoting their use and safety in vehicles.

Statutes affected:
Introduced: 423.3