The intent of this publication is to help clarify misunderstandings in sales and use tax which have been found through the audit procedures of the Iowa Department of Revenue and Finance. Errors found relate to purchases by these companies for their own use. All vehicles subject to registration are taxable without qualification.
All equipment attached to a vehicle subject to registration are taxable without qualification.
Replacement parts for exempt machinery and equipment are usually exempt. Labor to repair exempt machinery and equipment is always taxable. If parts are not separately itemized from labor, the entire charge is subject to tax. Computers are taxable unless they are used in processing or storage of data by an insurance company, financial institution or commercial enterprise. If a nurse tank is attached to a vehicle subject to registration, the nurse tank is taxable.