Governor Vilsack has signed into law a bill that excludes car wash equipment as being taxed as real estate in Iowa. All car wash owners should check with their local assessors in regards to making sure that their car wash equipment is not included in their current assessments. This change to Chapter 427 of the Iowa Code is retroactive to January 1, 2006. If car wash owners in Iowa have any questions, they should contact the HCA office for further details. The exact text of the bill is as follows:

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"Section 427A.1, Code 2005, is amended by adding the following new subsection:

NEW SUBSECTION. 5A. Notwithstanding the other provisions of this section, property that is equipment used for the washing, waxing, drying, or vacuuming of motor vehicles and point-of-sale equipment necessary for the purchase of car wash services shall not be assessed and taxed as real property."

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