Section 701.32.12. Exemption for vehicles previously purchased for rental.

The use of motor vehicles subject to registration and previously purchased for rental is exempt from tax if the following circumstances exist:

        1.            The motor vehicle was registered and titled between July 1, 1982, and July 1, 1992, inclusive;

        2.            The motor vehicle was registered and titled to a motor vehicle dealer licensed under Iowa Code chapter 322;

        3.            The motor vehicle was rented to a “user” as that term is defined in Iowa Code section 422C.2 and 701—27.1(422,422C,423);

        4.            The dealer kept the vehicle on the inventory of vehicles for sale at all times;

        5.            The vehicle was to be immediately taken from the user when a buyer was found; and

        6.            The user was aware of this fact.

This rule is intended to implement Iowa Code chapter 423.