reglab/statecodes huggingface dataset:
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 215 - Exemptions Primarily Benefiting Manufacturers and Other Persons Engaged in Processing › Rule 701-215.20 - Exemption for the Sale of Pollution-control Equipment Used by a Manufacturer

Current through Register Vol. 47, No. 3, July 24, 2024
The sales price of pollution-control equipment, including but
				  not limited to equipment required or certified by an agency of Iowa or of the
				  United States government, is exempt from sales and use tax when the property is
				  used by a manufacturer.
(1) Required
				elements. To qualify for exemption under this rule, the purchaser must prove
				the property is:
a. Pollution-control
				equipment as described in subrule 215.20(2); and
b. Used by a manufacturer as described in
				subrule 215.15(4).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 215 - Exemptions Primarily Benefiting Manufacturers and Other Persons Engaged in Processing › Rule 701-215.21 - Exemption for the Sale of Fuel or Electricity Used in Exempt Property

Current through Register Vol. 47, No. 3, July 24, 2024
The sales price of fuel or electricity consumed by computers,
				  computer peripherals, machinery, or equipment that is exempt from sales and use
				  tax under rule 701-230.14(423),
				  701-230.15(423),
				  701-230.16(423),
				  701-230.17(423),
				  701-230.19(423), or
				  701-230.20(423) is also exempt
				  from sales and use tax. The sales price of electricity or other fuel consumed
				  by replacement parts, supplies, computers, or computer peripherals used in
				  processing or storage of data or information by an insurance company, financial
				  institution, or commercial enterprise remains subject to tax even if such
				  property is exempt under rules
				  701-230.14(423) to
				  701-230.20(423).
EXAMPLE: A manufacturer operates a power plant. The
				  manufacturer uses energy from the power plant to operate machinery and
				  equipment used directly and primarily in processing at its manufacturing
				  facility. The fuel consumed in the manufacturer's power plant is exempt from
				  sales and use tax.
This rule is intended to implement Iowa Code section
				  423.3(47)
"b."
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 215 - Exemptions Primarily Benefiting Manufacturers and Other Persons Engaged in Processing › Rule 701-215.21 - Exemption for the Sale of Fuel or Electricity Used in Exempt Property

Current through Register Vol. 47, No. 3, July 24, 2024
The sales price of fuel or electricity consumed by computers,
				  computer peripherals, machinery, or equipment that is exempt from sales and use
				  tax under rule 701-215.14 (423),
				  701-215.15 (423),
				  701-215.16 (423),
				  701-215.17 (423),
				  701-215.19 (423), or
				  701-215.20 (423) is also exempt
				  from sales and use tax. The sales price of electricity or other fuel consumed
				  by replacement parts, supplies, computers, or computer peripherals used in
				  processing or storage of data or information by an insurance company, financial
				  institution, or commercial enterprise remains subject to tax even if such
				  property is exempt under rules
				  701-215.14 (423) through
				  701-215.20 (423).
EXAMPLE: A manufacturer operates a power plant. The
				  manufacturer uses energy from the power plant to operate machinery and
				  equipment used directly and primarily in processing at its manufacturing
				  facility. The fuel consumed in the manufacturer's power plant is exempt from
				  sales and use tax.
This rule is intended to implement Iowa Code section
				  423.3(47)
"b."
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 215 - Exemptions Primarily Benefiting Manufacturers and Other Persons Engaged in Processing › Rule 701-215.22 - Exemption for the Sale of Services for Designing or Installing New Industrial Machinery or Equipment

Current through Register Vol. 47, No. 3, July 24, 2024
The sales price from the services of designing or installing
				  new industrial machinery or equipment is exempt from sales and use tax. The
				  enumerated services of electrical or electronic installation are included in
				  this exemption.
(1) Required elements.
				To qualify for the exemption, the purchaser must prove the service
				is:
(2) Design or installation
				services include electrical and electronic installation. "Design or
				installation" services do not include any repair service.
a. A design or installation service (see
				subrule 230.22(2));
b. Of new (see
				subrule 230.22(3)); and
c.
				Industrial machinery or equipment (see subrule 230.22(4)).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 215 - Exemptions Primarily Benefiting Manufacturers and Other Persons Engaged in Processing › Rule 701-215.22 - Exemption for the Sale of Services for Designing or Installing New Industrial Machinery or Equipment

Current through Register Vol. 47, No. 3, July 24, 2024
The sales price from the services of designing or installing
				  new industrial machinery or equipment is exempt from sales and use tax. The
				  enumerated services of electrical or electronic installation are included in
				  this exemption.
(1) Required elements.
				To qualify for the exemption, the purchaser must prove the service is:
a. A design or installation service as
				described in subrule 215.22(2);
b.
				Of new as described in subrule 215.22(3); and
c. Industrial machinery or equipment as
				described in subrule 215.22(4).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 216 - Events, Amusements, and Other Related Activities › Rule 701-216.1 - Athletic Events

Current through Register Vol. 47, No. 3, July 24, 2024
The sales price from the sale of tickets or admissions to
				  athletic events occurring in the state of Iowa and sponsored by educational
				  institutions, without regard to the use of the proceeds from such sales, is
				  subject to tax, except when the events are sponsored by elementary and
				  secondary educational institutions.
This rule is intended to implement Iowa Code section
				  423.2(3).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 216 - Events, Amusements, and Other Related Activities › Rule 701-216.2 - Dance Schools and Dance Studios

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
In
				general.
The sales price from the services sold by dance schools or
				dance studios is subject to sales tax. This includes all activities, such as
				acrobatics, exercise, baton-twirling, tumbling, or modeling taught in dance
				schools or dance studios.
(2)
Definitions.
For purposes of this rule:
"Dance school"
means any institution
				  established primarily for the purpose of teaching one or more types of
				  dancing.
"Dance studio"
means any room or groups of
				  rooms in which any one or more types of dancing are taught.
This rule is intended to implement Iowa Code section
				  423.2(6)
"m."
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 216 - Events, Amusements, and Other Related Activities › Rule 701-216.4 - Campgrounds

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
In
				general.
Persons engaged in the business of renting campground sites
				are selling a service subject to sales tax, regardless of the duration of the
				rental. This includes the sales price for the operation of a campground and the
				use of a campground site.
(2)
Definition.
For purposes of this rule:
"Campground"
is any location at which sites
				  are provided for persons to place their own temporary shelter, such as a tent,
				  travel trailer, or motorhome. "Campground" does not include any hunting,
				  fishing, or other type of camp where accommodations are provided, though such
				  camps are likely subject to sales tax as commercial recreation under rule
				  701-216.3
				  (423).
(3)
Related
				charges.
The sale price of charges, whether mandatory or optional,
				imposed on persons using a campground site that are subject to sales tax
				include but are not limited to entry fees, utility (electric, water, sewer)
				fees, fees for the use of swimming pools or showers, and fees for extra persons
				or vehicles.
(4)
Public
				parks.
a. The sales price for the
				use of a state park as a campground is subject to sales tax; however, the sales
				price for the use of a county or municipal park as a campground is not subject
				to sales tax.
b. The sales price of
				vehicle entry fees into any state, county, or municipal park, commonly called
				"park user fees," is not subject to sales tax.
This rule is intended to implement Iowa Code section
				  423.2(6)
"j."
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 216 - Events, Amusements, and Other Related Activities › Rule 701-216.5 - Rental of Personal Property in Connection With the Operation of Amusements

Current through Register Vol. 47, No. 3, July 24, 2024
The sales price from rental of tangible personal property in
				  connection with the operation of amusements is taxable. Such rentals include
				  all tangible personal property or equipment used by patrons in connection with
				  the operation of commercial amusements, notwithstanding the fact that the
				  rental of such personal property may be billed separately.
This rule is intended to implement Iowa Code section
				  423.2(1).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 216 - Events, Amusements, and Other Related Activities › Rule 701-216.6 - Exempt Sales by Excursion Boat Licensees

Current through Register Vol. 47, No. 3, July 24, 2024
(1) The sales price
				of the following sales by licensees authorized to operate excursion gambling
				boats is exempt from Iowa sales and use tax:
a. Charges for admission to excursion
				gambling boats, and
b. The sales
				price from gambling games authorized by the state racing and gaming commission
				and conducted on excursion gambling boats.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 216 - Events, Amusements, and Other Related Activities › Rule 701-216.7 - Tangible Personal Property, Specified Digital Products, or Services Given Away as Prizes

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
In
				general.
The sales price from the sale of tangible personal property,
				specified digital products, or services that will be given as prizes to players
				in games of skill, games of chance, raffles, and bingo games as defined in and
				lawful under Iowa Code chapter 99B is exempt from tax. The rules issued by the
				department of inspections, appeals, and licensing in 481-Chapters 100 through
				106 further describe the games of skill, games of chance, raffles, and bingo
				games that are lawful and may be lawfully awarded.
(2)
Gift certificates.
A
				gift certificate is not tangible personal property. If a person wins a gift
				certificate as a prize and then redeems the gift certificate for merchandise,
				tax is payable at the time the gift certificate is redeemed.
This rule is intended to implement Iowa Code section
				  423.3(63).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 217 - Telecommunication Services › Rule 701-217.1 - Taxable Telecommunication Service and Ancillary Service

Current through Register Vol. 47, No. 3, July 24, 2024
The sales price of all telecommunication service and
				  ancillary service are subject to the sales or use tax.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 217 - Telecommunication Services › Rule 701-217.3 - Imposition of Tax

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Taxable
				telecommunication service and ancillary service.
The sales price of
				the sale of telecommunication service and ancillary service are subject to Iowa
				sales or use tax. The following is a nonexclusive list of taxable
				telecommunication services:
a. Air-to-ground
				radio telephone service;
b.
				Ancillary services except detailed communications billing service;
c. Conference bridging service;
d. Fixed wireless service;
e. Mobile wireless service;
f. Pay telephone service;
g. Postpaid calling service;
h. Prepaid calling service;
i. Prepaid wireless calling
				service;
j. Private communication
				service;
k. Residential
				telecommunication service.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 217 - Telecommunication Services › Rule 701-217.4 - Exempt From the Tax

Current through Register Vol. 47, No. 3, July 24, 2024
This rule provides various specific circumstances involving
				  nontaxable telecommunication service and ancillary service. The following is a
				  nonexclusive list of services that are not subject to the Iowa sales and use
				  tax:
(1) Detailed communications
				billing service.
(2) Internet
				access fees or charges.
(3)
				Value-added non-voice data service.
(4) Separately stated and separately billed
				charges. Fees and charges that are separately stated and billed are exempt from
				the sales and use tax. This exemption includes the following items when
				separately stated and billed:
a. Fees and
				charges for securing only interstate telecommunication services.
b. Federal taxes.
c. Fees and charges for only interstate
				directory assistance.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 217 - Telecommunication Services › Rule 701-217.5 - Bundled Transactions in Telecommunication Service

Current through Register Vol. 47, No. 3, July 24, 2024
More information on general rules on bundled transactions is
				  contained in 701-Chapter 206. In the case of a bundled transaction that
				  includes telecommunication service, ancillary service, Internet access, or
				  audio or video programming service, either separately or in combination:
(1) If the price is attributable to products
				that are taxable and products that are nontaxable, the portion of the price
				attributable to the nontaxable products will be subject to tax unless the
				provider can identify by reasonable and verifiable standards the portion from
				the provider's books and records that are kept in the regular course of
				business for other purposes, including but not limited to nontax
				purposes.
(2) If the price is
				attributable to products that are subject to tax at different tax rates, the
				total price may be treated as attributable to the products subject to tax at
				the highest tax rate, unless the provider can identify by reasonable and
				verifiable standards the portion of the price attributable to the products
				subject to tax at the lower rate from the provider's books and records that are
				kept in the regular course of business for other purposes, including but not
				limited to nontax purposes.
This rule is intended to implement Iowa Code section
				  423.2(8).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 217 - Telecommunication Services › Rule 701-217.7 - General Billing Issues

Current through Register Vol. 47, No. 3, July 24, 2024
This rule is specifically applicable to companies and other
				  persons providing telecommunication service and ancillary service in this
				  state.
(1)
Retailers liable
				for collecting and remitting tax.
A retailer that sells taxable
				telecommunication service and ancillary service is liable for collecting and
				remitting the state sales or use tax and any applicable local sales tax on the
				amounts of the sales.
(2)
Billing date and tax period.
A company that bills the
				company's subscribers for telecommunication service on a quarterly, semiannual,
				annual, or any other periodic basis must include the amount of those billings
				in the company's sales price. The date of the billing determines the period for
				which sales tax is remitted. For example, if the date of a billing is March 31,
				and the due date for payment of the bill without penalty is April 20, tax upon
				the sales price stated in the bill must be included in the sales tax return for
				the first quarter of the year. The same principle must be used to determine
				when tax will be included in payment of a sales tax deposit to the
				department.
(3)
Permitting
				business offices.
A company must have a permit for each business
				office that provides telecommunication service in this state. The company must
				collect and remit tax upon the sales price of the operation of each
				office.
(4)
Credit.
A taxpayer subject to sales or use tax on
				telecommunication service and ancillary service who has paid any legally
				imposed sales or use tax on such service to another jurisdiction outside the
				state of Iowa is allowed a credit against the sales or use tax imposed by the
				state of Iowa equal to the sales or use tax paid to the other taxing
				jurisdiction(s).
(5)
Direct
				pay permit not applicable to telecommunication services.
The
				department may issue a direct pay permit that allows the holder to purchase
				tangible personal property or taxable services without payment of the tax to
				the seller. However, a direct pay permit holder cannot use the direct pay
				permit for the purchase of telecommunication services and ancillary services.
				The seller must charge and collect the sales or use tax from the purchaser on
				the taxable sales of telecommunication services and ancillary
				services.
(6)
Guaranteed
				amounts for coin-operated telephones.
If a minimum amount is
				guaranteed to a company from the operation of any coin-operated telephone, tax
				is computed on the greater of the minimum amount guaranteed or the actual
				taxable sales price collected.
This rule is intended to implement Iowa Code section
				  423.36.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 217 - Telecommunication Services › Rule 701-217.9 - State Sales Tax Exemption for Central Office Equipment and Transmission Equipment

Current through Register Vol. 47, No. 3, July 24, 2024
Central office equipment and transmission equipment primarily
				  used in the furnishing of telecommunications services on a commercial basis are
				  exempt when used by certain providers enumerated in Iowa Code section
				  423.3(47A)
"a."
(1)
Definitions.
The following definitions are applicable to this
				rule:
"Central office equipment"
means the same as
				  defined in Iowa Code section
				  423.3(47A)
"b"
(1).
"Transmission equipment"
means the same as
				  defined in Iowa Code section
				  423.3(47A)
"b"
(4).
(2)
Central office equipment or
				transmission equipment.
The following are central office equipment or
				transmission equipment:
a. Stored program
				control digital switches and their associated equipment used to switch or route
				communication signals with a system from the origination point to the
				appropriate destination.
b.
				Peripheral equipment used to support the transmission of communications over
				the network, such as emergency power equipment, lightning arrestors, fault
				alarm equipment, multiplex equipment, digital cross connects, terminating
				equipment, fiber optic electronics, communication hardware equipment, and test
				equipment.
c. Circuit equipment
				that utilizes the message path to carry signaling information or that utilizes
				separate channels between switching offices to transmit signaling information
				independent of the subscribers' communication paths or transmission
				channels.
d. Radio equipment,
				including radio-transmitters and receivers utilized to transmit communication
				signals through the air from one location to another. Radio equipment also
				includes repeaters, which are located every 20 to 30 miles; at these points,
				radio signals are received, amplified and retransmitted.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 218 - Sales and Services Related to Vehicles › Rule 701-218.1 - Armored Car

Current through Register Vol. 47, No. 3, July 24, 2024
Persons engaged in the business of either providing armored
				  car service to others or converting a vehicle into an armored car are selling a
				  service subject to sales tax. For purposes of this rule, "armored car" means a
				  wheeled vehicle affording defensive protection by use of a metal covering or
				  other elements of ordinance.
This rule is intended to implement Iowa Code section
				  423.2(6)
"b."
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 218 - Sales and Services Related to Vehicles › Rule 701-218.2 - Vehicle Repair

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
In
				general.
Persons engaged in the business of repairing vehicles are
				selling a service subject to sales tax. Rule
				701-225.4 (423) contains more
				information on purchases made by auto body shops.
(2)
Definitions.
For
				purposes of this rule:
"Repair"
includes any type of restoration,
				  renovation or replacement of any motor, engine, working parts, accessories,
				  body, or interior of a vehicle. "Repair" does not include the installation of
				  new parts or accessories, which are not replacements, added to a
				  vehicle.
"Vehicle"
means the same as defined in Iowa
				  Code section 321.1(90).
(3)
Disposal fees.
Fees
				charged with the disposal of any item in connection with the performance of
				this service are subject to sales tax if the disposal fee of the item is not
				separately contracted for or itemized in the billing of the repair service. If
				the disposal fee is itemized or separately contracted for, the disposal fee is
				not subject to sales tax. Items that may be subject to disposal fee include but
				are not limited to air filters, batteries, oil, or tires.
This rule is intended to implement Iowa Code section
				  423.2(6)
"c."
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 218 - Sales and Services Related to Vehicles › Rule 701-218.3 - Motorcycle, Scooter, and Bicycle Repair

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
In
				general.
Persons engaged in the business of repairing motorcycles,
				scooters, and bicycles are selling a service subject to sales tax.
(2)
Definitions.
For
				purposes of this rule:
"Bicycle"
includes human-powered bicycles
				  and electric bicycles.
"Motorcycle"
includes autocycles.
"Repair"
means the same as defined in rule
				  701-211.1 (423).
This rule is intended to implement Iowa Code section
				  423.2(6)
"ag."
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 218 - Sales and Services Related to Vehicles › Rule 701-218.4 - Battery, Tire, and Allied

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Batteries in general.
Persons engaged in the business of
				installing, repairing, maintaining, restoring, or recharging batteries and any
				services related to or connected therewith are selling a service subject to
				sales tax.
(2)
Tires in
				general.
Persons engaged in the business of installing, repairing, or
				maintaining tires and any services related to or connected therewith are
				selling a service subject to sales tax.
(3)
Disposal fees.
Disposal
				fees charged in connection with the performance of the services identified in
				this rule are subject to sales tax if the disposal fee is not itemized or
				separately contracted for in the billing for the charge of the service. If the
				disposal fee charged in connection with the performance of the services
				identified in this rule are itemized or separately contracted for, then the
				disposal fee is not subject to sales tax. Items that may be subject to disposal
				fee include but are not limited to air filters, oil, tires, and batteries.
This rule is intended to implement Iowa Code sections
				  423.2(6)
"d"
and 423.2(7)
"a"
(1).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 218 - Sales and Services Related to Vehicles › Rule 701-218.5 - Boat Repair

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
In
				general.
Persons engaged in the business of repairing watercraft are
				selling a service subject to sales tax.
(2)
Definitions.
For
				purposes of this rule:
"Repair"
means the same as defined in rule
				  701-211.1 (423).
"Watercraft"
means the same as defined in
				  Iowa Code section 462A.2.
This rule is intended to implement Iowa Code section
				  423.2(6)
"h."
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 218 - Sales and Services Related to Vehicles › Rule 701-218.6 - Vehicle Wash and Wax

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
In
				general.
Persons engaged in the business of vehicle washing and waxing
				are selling a service subject to sales tax, whether performed by hand, machine,
				or coin-operated device. Rule
				701-225.7 (423) contains more
				information on purchases of inputs in vehicle wash and wax services.
(2)
Definition.
For purposes
				of this rule:
"Vehicle"
means the same as defined in Iowa
				  Code section 321.1(90).
This rule is intended to implement Iowa Code section
				  423.2(6)
"i."
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 218 - Sales and Services Related to Vehicles › Rule 701-218.7 - Wrecker and Towing

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
In
				general.
Persons engaged in the business of towing any vehicle are
				selling a service subject to sales tax. Included in this are services charges
				for a person to travel to any place to lift, extricate, tow, or salvage a
				vehicle.
(2)
Definitions.
For purposes of this rule:
"Towing"
includes any means of pushing,
				  pulling, carrying, or freeing any vehicle from mud, snow, or any other
				  impediment, including any incidental hoisting. "Towing" does not include
				  transporting operable vehicles from one location to another when no operative
				  aspect of the vehicle is integral to the transporting.
"Vehicle"
means the same as defined in Iowa
				  Code section 321.1(90).
This rule is intended to implement Iowa Code sections
				  423.1(7)  and
				  423.2(6)
"bn."
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 218 - Sales and Services Related to Vehicles › Rule 701-218.8 - Flying Service

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
In
				general.
Persons engaged in the business of teaching a course of
				instruction in the art of operation and flying of an airplane, and instructions
				in repairing, renovating, reconditioning an airplane, or any other related
				service are selling a service subject to sales tax.
(2)
Not included.
Flying
				services do not include those relating to agricultural aerial application,
				those relating to aerial commercial and chartered transportation services, and
				those services exempted by rule
				701-211.2 (423).
(3)
Flight instruction
				charges.
Charges relating to flight instruction can be taxable or
				nontaxable. Taxable charges include but are not limited to the sales price for
				the following:
a. Instructors' services,
				ground instruction, and ground school.
b. Students learning to fly with an
				instructor and dual flying.
c.
				Rental of a plane. Rule
				701-218.9 (423) contains more
				information.
This rule is intended to implement Iowa Code section
				  423.2(6)
"s."
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 218 - Sales and Services Related to Vehicles › Rule 701-218.9 - Aircraft Rental

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
In
				general.
Persons engaged in the business of renting aircraft for 60
				days or less are selling a service subject to sales tax.
(2)
Definition.
For purposes
				of this rule:
"Aircraft"
means the same as defined in Iowa
				  Code section 328.1. "Aircraft" also includes
				  any drone aircraft or any aircraft transporting only the pilot.
This rule is intended to implement Iowa Code section
				  423.2(6)
"bf."
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 218 - Sales and Services Related to Vehicles › Rule 701-218.10 - Snowmobiles, Motorboats, and Certain Other Vehicles

Current through Register Vol. 47, No. 3, July 24, 2024
The sales price of snowmobiles, all-terrain vehicles, dirt
				  bikes, race karts or go-carts, and motorboats is taxable when purchased and not
				  classified as vehicles subject to registration.
This rule is intended to implement Iowa Code chapter
				  423.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 218 - Sales and Services Related to Vehicles › Rule 701-218.11 - Motor Fuel, Special Fuel, Electric Fuel, Aviation Fuels and Gasoline

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
In
				general.
The sales price from the sale of motor fuel, including
				ethanol, special fuel, and electric fuel is exempt from sales tax if (1) the
				fuel is consumed for highway use, in watercraft, or in aircraft, (2) the Iowa
				fuel tax has been imposed and paid, and (3) no refund or credit of fuel tax has
				been made or will be allowed. The sales price from the sale of special fuel for
				diesel engines used in commercial watercraft on rivers bordering Iowa is exempt
				from sales tax, even though no fuel tax has been imposed and paid, providing
				the seller delivers the fuel to the owner's watercraft while it is
				afloat.
(2)
Refunds or
				credits of motor fuel and special fuel.
Claims for refund or credit of
				fuel taxes under the provisions of Iowa Code chapter 452A must be reduced by
				any sales or use tax owing the state unless a sales tax exemption is
				applicable. Generally, refund claims or credits are allowed where fuel is
				purchased tax-paid and used for purposes other than to propel a motor vehicle
				or used in watercraft.
(3)
Refunds of tax on fuel purchased in Iowa and consumed outside of
				Iowa.
Even though fuel is purchased in Iowa, fuel tax is paid in Iowa,
				and the fuel tax is subject to refund under the provisions of division III of
				Iowa Code chapter 452A relating to interstate motor vehicle operations, the
				refund of the fuel tax does not subject the purchase of the fuel to sales
				tax.
(4)
Tax base.
The basis for computing the Iowa sales tax will be the retail sales price of
				the fuel less any Iowa fuel tax included in such price. Federal excise tax
				should not be removed from the sales price in determining the proper sales tax
				due. Rule 701-288.12 (423) contains more
				information.
This rule is intended to implement Iowa Code section
				  423.3(56).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 218 - Sales and Services Related to Vehicles › Rule 701-218.12 - Ships, Barges, and Other Waterborne Vessels

Current through Register Vol. 47, No. 3, July 24, 2024
Tax will not be imposed upon the use, within Iowa, of any
				  ship, barge, or other waterborne vessel if that use is primarily for the
				  transportation of property or cargo for hire on the rivers bordering this
				  state. This exemption is also applicable to tangible personal property used as
				  material in the construction of or as a part for the repair of any such ship,
				  barge, or waterborne vessel. The use must be on a river or rivers bordering
				  Iowa, not on any river or rivers bounded on both banks by Iowa
				  territory.
This rule is intended to implement Iowa Code section
				  423.4(10).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 219 - Sales and Use Tax on Construction Activities › Rule 701-219.2 - Contractors-consumers of Building Materials, Supplies, and Equipment by Statute

Current through Register Vol. 47, No. 3, July 24, 2024
Iowa Code section
				  423.2(1)
"b"
provides that sales of building materials, supplies and
				  equipment to owners, contractors, subcontractors or builders for the erection
				  of buildings or the alteration, repair or improvement of real property are
				  retail sales in whatever quantity sold. This means that a contractor,
				  subcontractor, or builder cannot claim an exemption for resale when purchasing
				  building materials or supplies even if the contractor, subcontractor, or
				  builder later separately itemizes material and labor charges for construction
				  contracts. Building materials and supplies would generally consist of items
				  which are incorporated into real property, lose their identity as tangible
				  personal property and cannot be removed without altering the realty, or which
				  are consumed by the contractor during the performance of the construction
				  contract. See subrules 219.3(1), 219.3(2) and 219.3(3). Building equipment
				  would ordinarily consist of machinery and tools. See subrule 219.3(4). The fact
				  that a contractor, subcontractor or builder holds an Iowa retail sales tax
				  permit and has a tax number does not entitle that person to purchase building
				  materials, supplies and equipment without paying sales tax to the vendor. See
				  rules 701-219.3 (423) and
				  701-219.4 (423).
When bidding on a contract, a contractor (general, special or
				  subcontractor) should anticipate that sales or use taxes will increase the cost
				  of materials by the tax unless the sponsor is a designated exempt entity;
				  reference rule 701-219.23 (423). The necessary
				  allowance should be made in figuring the bid inasmuch as the contractor will be
				  held responsible for paying the tax on building supplies, materials and
				  equipment. The tax should not be identified as a separate item in the formal
				  bid since the contractor cannot charge sales tax.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 219 - Sales and Use Tax on Construction Activities › Rule 701-219.2 - Contractors-consumers of Building Materials, Supplies, and Equipment by Statute

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Inapplicability of resale exemption.
A contractor,
				subcontractor, or builder cannot claim an exemption for resale when purchasing
				building materials or supplies even if the contractor, subcontractor, or
				builder later separately itemizes material and labor charges for construction
				contracts or contracts for reconstruction, alteration, expansion, or
				remodeling.
(2)
Bidding
				considerations.
When bidding on a contract, a contractor (general,
				special or subcontractor) should anticipate that sales or use taxes will
				increase the cost of materials by the tax unless the sponsor is a designated
				exempt entity. The necessary allowance should be made in figuring the bid
				inasmuch as the contractor will be held responsible for paying the tax on
				building supplies, materials and equipment. The tax should not be identified as
				a separate item in the formal bid since the contractor cannot charge sales tax.
This rule is intended to implement Iowa Code section
				  423.2(1)
"b."
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 219 - Sales and Use Tax on Construction Activities › Rule 701-219.5 - Building Materials, Supplies, and Equipment Used in the Performance of Construction Contracts Within and Outside Iowa

Current through Register Vol. 47, No. 3, July 24, 2024
(1) The use of
				building materials, supplies, or equipment in the performance of construction
				contracts by the manufacturer outside Iowa is not a sale of tangible personal
				property and, therefore, is not a taxable event. The use of tangible personal
				property as building materials, supplies, or equipment by the manufacturer in
				the performance of construction contracts in Iowa is a sale at retail and a
				taxable event. The tax is computed on the manufacturer's fabricated cost or
				cost of production. See rule 219.6(423) for a characterization of the term
				manufacturer's "fabricated cost."
(2) A contractor-retailer's withdrawal of
				materials from inventory for use in construction contracts outside this state
				is not a taxable event.
(3) A
				contractor is a consumer by statute. A contractor's purchase of materials for
				use in a construction contract is subject to tax whether the materials are
				purchased for use in construction contracts performed in Iowa or outside this
				state.
(4) A manufacturer's
				purchase of tangible personal property consumed as building material in the
				manufacturer's or the manufacturer's subcontractor's performance of
				construction contracts within Iowa is taxable. The tax is computed on the
				fabricated cost or cost of production of the materials. See rule 219.6(423) for
				a characterization of the term "fabricated cost." The purchase of tangible
				personal property consumed by a manufacturer as building material in the
				manufacturer's or the manufacturer's subcontractor's performance of a
				construction contract outside Iowa is not subject to tax.
(5) Reference rule
				701-328.
				(423) for an exemption from use tax for building materials, supplies, or
				equipment purchased outside Iowa, brought into this state, and subsequently
				used in the performance of a construction contract outside this
				state.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 219 - Sales and Use Tax on Construction Activities › Rule 701-219.5 - Building Materials, Supplies, and Equipment Used in the Performance of Construction Contracts Within and Outside Iowa

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Use by manufacturer.
a.
Outside of Iowa.
The use
				of building materials, supplies, or equipment in the performance of
				construction contracts or contracts for reconstruction, alteration, expansion,
				or remodeling by the manufacturer outside Iowa is not a sale of tangible
				personal property and, therefore, is not a taxable event.
b.
Within Iowa.
The use of
				tangible personal property as building materials, supplies, or equipment by the
				manufacturer in the performance of construction contracts or contracts for
				reconstruction, alteration, expansion, or remodeling in Iowa is a sale at
				retail and a taxable event. The tax is computed on the manufacturer's
				fabricated cost or cost of production.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 219 - Sales and Use Tax on Construction Activities › Rule 701-219.6 - Tangible Personal Property Used or Consumed by the Manufacturer Thereof

Current through Register Vol. 47, No. 3, July 24, 2024
When a person who is primarily engaged in the manufacture of
				  building materials, supplies, or equipment for sale and not for the person's
				  own use or consumption, considering the totality of the business, from time to
				  time uses or consumes the building materials, supplies, or equipment for
				  construction purposes, the person is deemed to be making retail sales to one's
				  self and subject to tax on the basis of the fabricated cost of the items so
				  used or consumed for construction purposes. If equipment, building materials,
				  or supplies are used by a manufacturer in the performance of a construction
				  contract, a "sale" occurs only if the equipment, materials, or supplies are
				  used in the performance of a construction contract in Iowa. For purposes of
				  this rule, the term "fabricated cost" means and includes the cost of all
				  materials as well as the cost of labor, power, transportation to the plant, and
				  other plant expenses but not installation on the job site.
Associated
				  General Contractors of Iowa v. State Tax commission,
255 Iowa 673, 123
				  N.W.2d 922 (1963). Also see rule 219.4(423) relating to contractors and rule
				  219.5(423) relating to materials, supplies, and equipment used in construction
				  contracts within and outside Iowa.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 219 - Sales and Use Tax on Construction Activities › Rule 701-219.6 - Tangible Personal Property Used or Consumed by the Manufacturer Thereof

Current through Register Vol. 47, No. 3, July 24, 2024
When a person who is primarily engaged in the manufacture of
				  building materials, supplies, or equipment for sale and not for the person's
				  own use or consumption, considering the totality of the business, from time to
				  time uses or consumes the building materials, supplies, or equipment for
				  construction purposes, the person is deemed to be making retail sales to one's
				  self and subject to tax on the basis of the fabricated cost of the items so
				  used or consumed for construction purposes. If equipment, building materials,
				  or supplies are used by a manufacturer in the performance of a construction
				  contract or a contract for reconstruction, alteration, expansion, or
				  remodeling, a "sale" occurs only if the equipment, materials, or supplies are
				  used in the performance of such contract in Iowa.
This rule is intended to implement Iowa Code section
				  423.2(1)
"c."
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 219 - Sales and Use Tax on Construction Activities › Rule 701-219.7 - Prefabricated Structures

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Basic concepts.
Prefabricated structures include modular homes, mobile homes, manufactured
				housing, sectionalized housing, precut housing packages, and panelized
				construction.
(2)
Taxability.
a. Sales or use
				tax on the full purchase price is due when prefabricated structures are sold to
				or used by owners, contractors, subcontractors, or builders, or delivered under
				a contract for sale or sold for use in Iowa.
b. Sales of prefabricated structures that
				have not been erected on a foundation are considered sales of tangible personal
				property and thus are taxable on the purchase price charged to a consumer or
				user by the seller at the time of retail sale.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 219 - Sales and Use Tax on Construction Activities › Rule 701-219.9 - Machinery and Equipment Sales Contracts With Installation

Current through Register Vol. 47, No. 3, July 24, 2024
Machinery and equipment sales contracts with installation are
				  transactions which are considered a sale of tangible personal property to a
				  final consumer Therefore, the individual who sells the equipment with
				  installation must purchase the machinery and equipment tax-free as a purchase
				  for resale. This rule should not be confused with subrule 219.3(3) regarding
				  building equipment. The contract should itemize the sales tax separately. If a
				  contractor wishes to avoid an itemization of sales and use tax on machinery and
				  equipment which remains tangible personal property, the contractor can do so by
				  figuring the tax as a general overhead expense and including a statement in the
				  contract and related invoices that "sales tax is included in the contract
				  price."
If the sales transaction is one completed out of state and
				  shipped in interstate commerce to a consumer or a user in Iowa, and not
				  otherwise exempt from tax, the final purchaser is required to pay Iowa use tax
				  on the purchase price of the machinery and equipment.
In a "mixed contract" (a construction contract mingled with a
				  machinery and equipment sales contract), the elements of the contract should be
				  separated for sales tax purposes. See rule 219.10(423).
Certain services which are enumerated in 2005 Iowa Code
				  section
				  4232. are subject to
				  tax when performed under a contract for the installation of machinery and
				  equipment which is not done in connection with new construction,
				  reconstruction, alteration, expansion or remodeling of a building or structure.
				  Reference rule
				  701-1514.
				  (422,423) relating to installation charges. Examples of the enumerated services
				  are: electrical installation; plumbing; welding; and pipe fitting. Other labor
				  charges for job site installation which do not involve a taxable enumerated
				  service are not subject to tax if the charges are separately contracted or, if
				  no written contract exists, are separately itemized on the billing from the
				  seller to the purchaser
Example. company B contracts with company A to furnish and
				  install a portable conveyor unit, in company A's new building. company B can
				  purchase the portable conveyor unit, tax-free because the portable conveyor
				  unit maintains its identity as tangible personal property after installation
				  and does not become a component part of the real property. company B would then
				  charge tax to company A on the sale of the portable conveyor unit,.
				  Installation charges would be part of the total sales price subject to tax
				  unless they are separately contracted or, if no written contract exists,
				  separately itemized on the billing from company B to company
				  A.