Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 200 - Definitions › Rule 701-200.1 - Definitions

Current through Register Vol. 47, No. 3, July 24, 2024
The definitions set out in this chapter are applicable
				  wherever the terms they define appear in this title unless the context
				  indicates otherwise.
"Agricultural production"
is limited to what
				  would ordinarily be considered a farming operation undertaken for profit. The
				  term "agricultural production" refers to the raising of crops or livestock for
				  market on an acreage. Included within the meaning of the phrase "agricultural
				  production" is any feedlot operation whether or not the land upon which a
				  feedlot operation is located is used to grow crops to feed the livestock in the
				  feedlot and regardless of whether or not the livestock fed are owned by persons
				  conducting the feedlot operation, and operations growing and raising hybrid
				  seed corn or other seed for sale to nurseries, ranches, orchards, and dairies.
				  "Agricultural production" includes the raising of flowering, ornamental, or
				  vegetable plants in commercial greenhouses or elsewhere for sale in the
				  ordinary course of business. "Agricultural production" also includes any kind
				  of aquaculture, silviculture, commercial greenhouses, and raising catfish.
				  Beekeeping and the raising of mink, other nondomesticated furbearing animals,
				  and nondomesticated fowl (other than ostriches, rheas, and emus) continue to be
				  excluded from the term "agricultural production." The above list of exclusions
				  and inclusions within the term "agricultural production" is not exhaustive.
				  "Agricultural products" includes flowering, ornamental, or vegetable plants and
				  those products of aquaculture and silviculture.
"Aquaculture"
means the cultivation of
				  aquatic animals and plants, including fish, shellfish, and seaweed, in natural
				  or controlled marine or freshwater environments.
"Chemical"
means a substance that is
				  primarily used for producing a chemical effect. A chemical effect results from
				  a chemical process wherein the number and kind of atoms in a molecule are
				  changed in form (e.g., where oxygen and hydrogen are combined to make water). A
				  chemical process is distinct from a physical process wherein only the state of
				  matter changes (e.g., where water is frozen into ice or heated into
				  steam).
"Domesticated fowl"
means any domesticated
				  bird raised as a source of food, either eggs or meat. "Domesticated fowl"
				  includes, but is not limited to, chickens, ducks, turkeys, pigeons, ostriches,
				  rheas, and emus that are raised for meat rather than for racing or as pets.
				  Excluded from the meaning of "domesticated fowl" are nondomesticated birds,
				  such as pheasants, raised for meat or any other purpose.
"Livestock"
means domestic animals that are
				  raised on a farm as a source of food or clothing. "Livestock" includes cattle,
				  sheep, hogs, goats, chickens, ducks, turkeys, ostriches, rheas, emus, bison,
				  and farm deer. "Farm deer" means the same as defined in Iowa Code section
				  170.1 and commonly includes
				  animals belonging to the Cervidae family, such as fallow deer, red deer or elk
				  and sika. However, "farm deer" does not include unmarked free-ranging elk. Fish
				  and any other animals that are products of aquaculture are considered to be
				  "livestock" as well.
Excluded from the term "livestock" are horses, mules, other
				  draft animals, dogs, cats, and other pets. Also excluded from the term
				  "livestock" are mink, bees, or other nondomesticated animals even if raised in
				  captivity and even if raised as a source of food or clothing. Also excluded
				  from "livestock" is any animal raised for racing.
"Plants"
means fungi such as mushrooms and
				  crops commonly grown in this state such as corn, soybeans, oats, hay, alfalfa
				  hay, wheat, sorghum, and rye. Also included within the meaning of the term
				  "plants" are flowers, shrubs, and fruit trees. Excluded from the meaning of the
				  term "plants" are products of silviculture, such as trees raised for Christmas
				  trees and any trees raised to be harvested for wood.
"Reagent"
means a substance used for various
				  purposes (i.e., in detecting, examining, or measuring other substances; in
				  preparing materials; in developing photographs) because it takes part in one or
				  more chemical reactions or biological processes. A reagent is also a substance
				  used to convert one substance into another by means of the reaction that it
				  causes. To be a reagent for purposes of the exemption, a substance must be
				  primarily used as a reagent.
"Silviculture"
means the establishment,
				  growth, care, and cultivation of trees. "Silvicultural activities" includes
				  logging. "Silvicultural products" includes trees raised and offered for sale
				  for Christmas trees and any trees raised to be harvested for wood.
"Solvent"
means a substance in which another
				  substance can be dissolved and that is primarily used for that purpose.
"Sorbent"
means a solid material, often in a
				  powder or granular form, that acts to retain another substance, usually on the
				  sorbent's surface, thereby removing the other substance from the gas or liquid
				  phase. The sorbent and the second material bond together at the molecular or
				  atomic scale via physiochemical interactions. A substance is not a sorbent
				  based on an ability to absorb heat or thermal energy.
"Tax"
means the tax imposed upon retail
				  sales or use of tangible personal property, specified digital products, or
				  taxable services.