This bill amends Iowa law to exempt the sales price of child restraint systems from sales and use tax, thereby making these essential safety items more affordable for consumers. The bill defines a child restraint system as a specially designed seating system, such as a belt-positioning seat or booster seat, that complies with federal safety standards. This exemption is established in a new subsection of Section 423.3 of the Code, and it is noted that items exempt from sales tax are also exempt from use tax under Code section 423.6.

Additionally, 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, which specifies that the definitions of "automobile" and "child restraint system" align with existing definitions in the Code. The provisions of this bill will apply to automobile losses occurring on or after July 1, 2025.

Statutes affected:
Introduced: 423.3