Smith wants rental dealers to set a retail value based on the
dollar amount that like-merchandise would sell for in the market area. The
proposed language is an exact copy of the West Virginia Rental
Purchase Act:
"Retail value" of personal property means the price at which
personal property of like type, quality, and quantity would
change hands between a willing seller and a willing buyer, at
retail, for cash, in the particular market area at the time the
consumer rental purchase agreement is entered into, which price
does not include any applicable sales, use, privilege, excise,
or documentary stamp taxes payable upon the transfer of such
property.
"There's a lot of bad things about this bill, Ralston continued.
"We don't like price controls. We believe the free enterprise
system works best."
Even Representative Smith, who does not have a history of
activist legislation, doubts the bill has legs. "I rather doubt
that the chair of the commerce committee will take any action on
it," Smith told RTO Online.
Onlookers are at a loss to explain why Smith introduced this
bill in the first place. Representative Smith claims that that no group or constituent brought the issue to his attention.
Smith also confirmed that he is unaware of any issues or problems associated with the
current state law regulating rental-purchase in Iowa. So - why
now? "I was reading the
West Virginia Law and thought it was something that would be
beneficial here in Iowa," he said.
The Iowa
Association of Business and Industry opposes HF 2308. The group
has received assurances from House leadership that the bill would be stopped.