reglab/statecodes huggingface dataset:
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 11 - Administration › Rule 701-11.4 - Retailers Required to Keep Records

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Records required.
The
				records required in this rule must be made available for examination upon
				request by the director or the director's authorized representative. The
				records must include the normal books of account ordinarily maintained by a
				person engaged in the activity in question and include all bills, receipts,
				invoices, cash register tapes, or other documents of original entry supporting
				the entries in the books of account as well as all schedules or working papers
				used in connection with the preparation of tax returns. In addition to the
				above, the following more specific records requirements apply:
a. A daily record of the amount of all cash
				and time payments and credit sales.
b. A record of the amount of all merchandise
				purchased and of all services performed for a retailer, including all bills of
				lading, invoices and copies of purchase orders.
c. A record of all deductions and exemptions
				taken in filing a sales or use tax return.
d. A true and complete inventory of the value
				of the stock on hand taken at least once a year. This includes an inventory of
				merchandise accepted as partial payment of the sales price on new
				merchandise.
e. An accurate record
				of all services performed, including materials purchased for use in performing
				these services.
f. Exemption
				certificates which are evidence of exempt sales must be executed or be in
				effect at or near (within 30 days of sale) the time of the sale. See
				701-subrule 15.3(2).
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 11 - Administration › Rule 701-11.5 - Audit of Records

Current through Register Vol. 47, No. 3, July 24, 2024
The department shall have the right and duty to examine or
				  cause to be examined the books, papers, records, memoranda or documents of a
				  taxpayer for the purpose of verifying the correctness of a return filed or
				  estimating the tax liability of any taxpayer The right to examine records
				  includes the right to examine copies of the taxpayer's state and federal income
				  tax returns. When a taxpayer fails or refuses to produce the records for
				  examination when requested by the department, the director shall have authority
				  to require, by a subpoena, the attendance of the taxpayer and any other
				  witness(es) whom the department deems necessary or expedient to examine and
				  compel the taxpayer and witness(es) to produce books, papers, records,
				  memoranda or documents relating in any manner to sales and use tax.
The department shall have the legal obligation to inform the
				  taxpayer when an examination of the taxpayer's books, papers, records,
				  memoranda, or documents has been completed and the amount of tax liability, if
				  any, due upon completion of the audit. Tax liability includes the amount of
				  tax, interest, penalty and fees which may be due.
This rule is intended to implement Iowa Code sections 422.50,
				  42270.,
				  42321., and
				  42323..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 11 - Administration › Rule 701-11.6 - Billings

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Notice
				of adjustments.
a. An agent,
				auditor, clerk, or employee of the department, designated by the director to
				examine returns and make audits, who discovers discrepancies in returns or
				learns that gross receipts, gross purchases, or services subject to sales and
				use tax may not have been listed, in whole or in part, or that no return was
				filed when one was due, is authorized to notify the person of this discovery by
				ordinary mail. This notice is not an assessment. It informs the person what
				amount would be due if the information discovered is correct.
b. Right of person upon receipt of notice of
				adjustment. A person who has received notice of an adjustment in connection
				with a return may pay the additional amount stated to be due. If payment is
				made, and the person wishes to contest the matter, they should then file a
				claim for refund. However, payment will not be required until an assessment has
				been made (although interest will continue to accrue if payment is not made).
				If no payment is made, the person may discuss with the agent, auditor, clerk,
				or employee who notified them of the discrepancy, either in person or through
				correspondence, all matters of fact and law which may be relevant to the
				situation. This person may also ask for a conference with the Audit and
				compliance Division, Des Moines, Iowa. Documents and records supporting the
				person's position may be required.
c. Power of agent, auditor or employee to
				compromise tax claim. No employee of the department has the power to compromise
				any tax claims. The power of the agent, auditor, clerk or employee who notified
				the person of the discrepancy is limited to the determination of the correct
				amount of tax.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 11 - Administration › Rule 701-11.7 - Collections

Current through Register Vol. 47, No. 3, July 24, 2024
If the director determines it expedient or advisable, the
				  director may enforce the collection of the tax liability which has been
				  determined to be due. In the action, the attorney general shall appear for the
				  department and have the assistance of the county attorney in the county in
				  which the action is pending.
The remedies for the enforcement and collection of sales and
				  use tax are cumulative, and action taken by the department or attorney general
				  shall not be construed to be an election on the part of the state or any of its
				  officers to pursue any remedy to the exclusion of any other remedy.
This rule is intended to implement Iowa Code sections
				  42226.,
				  422.56, and
				  42317..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 11 - Administration › Rule 701-11.8 - No Property Exempt From Distress and Sale

Current through Register Vol. 47, No. 3, July 24, 2024
By reference, Iowa Code section 422.56 makes section
				  42226.
				  apart of the sales and use tax law and provides that said section shall apply
				  in respect to a sales and use tax liability determined to be due by the
				  department. The department shall proceed to collect the tax liability after the
				  same has become delinquent; but no property of the taxpayer shall be exempt
				  from the payment of said tax.
This rule is intended to implement Iowa Code sections
				  42226.,
				  422.56, and
				  42317..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 11 - Administration › Rule 701-11.9 - Information Confidential

Current through Register Vol. 47, No. 3, July 24, 2024
When requested to do so by any person having a legitimate
				  interest in such information, the department shall, after being presented with
				  sufficient proof of the entire situation, disclose to the person the amount of
				  unpaid taxes due by a taxpayer The person shall provide the department with
				  sufficient proof consisting of all relevant facts and the reason or reasons for
				  seeking information as to the amount of unpaid taxes due by the taxpayer The
				  information sought shall not be disclosed if the department determines that the
				  person requesting information does not have a legitimate interest. Examples of
				  those who might seek information on a taxpayer are persons from whom a taxpayer
				  is seeking credit, or with whom the taxpayer is negotiating the sale of any
				  personal property.
Upon request, the department may disclose to any person
				  whether or not a taxpayer has a sales tax permit because the law requires the
				  taxpayer's permit to be conspicuously posted at all times in the taxpayer's
				  place of business, thus becoming public information.
All other information obtained by employees of the department
				  in the performance of their official duties is confidential and cannot be
				  disclosed. See rule
				  701-63.
				  (17A).
This rule is intended to implement Iowa Code sections 422.56,
				  42272.,
				  and
				  42323..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 15 - Determination of a Sale and Sale Price › Rule 701-15.3 - Exemption Certificates, Direct Pay Permits, Fuel Used in Processing, and Beer and Wine Wholesalers

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
General provision.
The sales price from the sale of tangible
				personal property or specified digital products to a purchaser for any exempt
				purpose are not subject to tax as provided by the Iowa sales and use tax
				statutes. In addition, a seller of tangible personal property or specified
				digital products need not collect Iowa sales or use tax from a purchaser that
				possesses a valid direct pay permit issued by the department of revenue.
				However, the following are requirements for the exemption and noncollection of
				tax by a seller when a direct pay permit is involved:
a. The sales tax liability for all sales of
				tangible personal property, specified digital products, and taxable services is
				upon the seller and the purchaser unless the seller takes from the purchaser a
				valid exemption certificate stating under penalty of perjury that the purchase
				is for a nontaxable purpose and is not a retail sale, or the seller is not
				obligated to collect tax due, or unless the seller takes a fuel exemption
				certificate. If the tangible personal property, specified digital products, or
				services are purchased tax-free pursuant to a valid exemption certificate and
				the tangible personal property, specified digital products, or services are
				used or disposed of by the purchaser in a nonexempt manner, the purchaser is
				solely liable for the taxes and shall remit the taxes directly to the
				department. The protection afforded a seller by this paragraph does not apply
				to a seller who fraudulently fails to collect tax or to a seller who solicits
				purchasers to participate in the unlawful claiming of an exemption.
b. The director is required to provide
				exemption certificates to assist retailers in properly accounting for
				nontaxable sales of tangible personal property, specified digital products, or
				services to buyers for exempt purposes. These exemption certificates must be
				completed as to the information required on the form in order to be
				valid.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 15 - Determination of a Sale and Sale Price › Rule 701-15.8 - Returned Merchandise

Current through Register Vol. 47, No. 3, July 24, 2024
When merchandise is sold and returned by a customer who
				  secures an allowance or a return of the full purchase price, the seller may
				  deduct the amount allowed as full credit or refund, provided the merchandise is
				  taxable merchandise and tax has been previously paid on the sales price.
An allowance shall not be made for the return of any
				  merchandise which (1) is exempt from either sales or use tax; or (2) has not
				  been reported in the taxpayer's tax previously paid.
This rule is intended to implement Iowa Code section
				  423.31.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 15 - Determination of a Sale and Sale Price › Rule 701-15.11 - Leased Departments

Current through Register Vol. 47, No. 3, July 24, 2024
When a permit holder leases a part of the premises where the
				  permit holder's retail business is conducted, the lessor shall immediately
				  notify the department and supply the following information:
(1) name and home office address of the
				lessee;
(2) type of merchandise
				sold by the lessee or service performed;
(3) date when the lessee began making sales
				or performing services at retail in Iowa on the leased premises; and
(4) whether the lessee has secured a permit
				to account directly to the department for tax due or if the lessee's sales will
				be accounted for in the lessor's tax return. Upon request, the department shall
				furnish a form to the lessor on which to report this information.
If the lessor fails to notify the department that a part of
				  the premises has been leased and does not furnish the requested information,
				  the lessor shall be responsible for tax due as a result of sales by the lessee,
				  unless the lessee has properly remitted the tax due.
The lessor who has leased a part of the premises shall report
				  to the department the names and addresses of all lessees. If the lessor is
				  accounting for the lessee's sales, the lessor shall, after the name of each
				  lessee, show the amount of net taxable sales made by the lessee and which net
				  taxable sales are included in the lessor's return. If the lessee is reporting
				  the tax directly to the department, the lessor shall show the permit number of
				  the lessee.
When the lessee has terminated selling activities, the lessor
				  shall immediately notify the department. This rule is intended to implement
				  Iowa Code section
				  423.25.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 15 - Determination of a Sale and Sale Price › Rule 701-15.15 - Premiums and Gifts

Current through Register Vol. 47, No. 3, July 24, 2024
A person who gives away or donates tangible personal
				  property, specified digital products, or taxable services shall be deemed to be
				  a consumer of such property, products, or services for tax purposes. The sales
				  price from the sale of tangible personal property, specified digital products,
				  or taxable services to such persons for such purposes shall be subject to
				  tax.
When a retailer purchases tangible personal property, a
				  specified digital product, or a taxable service, exclusive of tax, for the
				  purpose of resale in the regular course of business and later gives it away or
				  donates it, the retailer shall include in the return the value of the property,
				  product, or service at the retailer's cost price.
When a retailer sells tangible personal property, specified
				  digital products, or taxable services and furnishes a premium with the
				  property, product, or service sold, the retailer is considered to be the
				  ultimate consumer or user of the premium furnished.
This rule is intended to implement Iowa Code sections
				  423.1 and
				  423.2.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 17 - Exempt Sales › Rule 701-17.2 - Fuel Used in Processing-when Exempt

Current through Register Vol. 47, No. 3, July 24, 2024
Receipts from the sale of tangible personal property which
				  is to be consumed as fuel in creating power, heat or steam for processing,
				  including grain drying or for generating electric current, shall be exempt from
				  sales tax.
The exemption provided in the case of tangible personal
				  property consumed as fuel in creating heat applies only when such heat is
				  directly applied in the actual processing of tangible personal property
				  intended to be sold ultimately at retail, as distinguished from heat which is
				  used for the purpose of heating buildings, whether such buildings be
				  manufacturing or processing plants, warehouses or offices.
Chicago, B.
				  & Q. R. Co. v. Iowa State Tax commission,
259 Iowa 178, 142 N.W.2d
				  407 (1966).
Fuel used in processing is exempt to creameries, dairies or
				  ice cream factories only to the extent that the fuel is used in the actual
				  processing of the finished product. This does not include combustible fuel used
				  for storage after the manufacturing process is completed. For the treatment of
				  electricity or steam used as a fuel or for any other purposes in processing by
				  creameries, dairies, ice cream factories or other processors before, on or
				  after July 1, 1985, see rule 17.3(422,423).
This rule is intended to implement Iowa Code section
				  422.42(3).
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 17 - Exempt Sales › Rule 701-17.3 - Processing Exemptions

Current through Register Vol. 47, No. 3, July 24, 2024
Carbon dioxide in a liquid, solid or gaseous form,
				  electricity, steam, or other taxable services to be used in the processing of
				  tangible personal property intended to be sold ultimately at retail are exempt
				  from sales tax.
(1)
Services
				used in processing.
Electricity, steam, or any other taxable service
				is used in processing only if the taxable service is used in any operation
				which subjects raw material to some special treatment which changes, by
				artificial or natural means, the form, context, or condition of the raw
				material and results in a change of the raw material into marketable tangible
				personal property intended to be sold ultimately at retail. The following are
				nonexclusive examples of what would and would not be considered electricity,
				steam or other taxable services used in processing:
a. The gross receipts from the sale of
				electricity or steam consumed as power or used in the actual processing of
				tangible personal property intended to be sold ultimately at retail would be
				exempt from tax. The gross receipts are to be distinguished from those of
				electricity or steam consumed for the purpose of lighting, ventilating, or
				heating manufacturing plants, warehouses, or offices. These latter gross
				receipts would be taxable.
b. The
				gross receipts from electricity used in the freezing of tangible personal
				property, ultimately to be sold at retail, to make the property marketable
				would be exempt from sales tax,
Fischer Artificial Ice & Cold
				Storage Co. v. Iowa State Tax commission,
81 N.W.2d 437 (Iowa
				1957).
c. Electricity used merely
				in the refrigeration or the holding of tangible personal property for the
				purpose of preventing spoilage or to preserve the property in its present state
				would not be "used in processing" and, therefore, its gross receipts would be
				subject to tax, Fischer Artificial Ice, supra.
d. Prior to July 1, 1995, electricity or
				other fuel used by greenhouses and their related facilities for the purposes of
				growing plants is not under any circumstances fuel which is used in processing,
				and the gross receipts from its sales would be subject to tax. On and after
				July I, 1995, electricity or other fuel used for heating or cooling of a
				building used in the commercial production of flowering, ornamental, or
				vegetable plants, is exempt from tax. See 701-subrule 18.57(2) for more
				information.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 17 - Exempt Sales › Rule 701-17.4 - Commercial Fertilizer and Agricultural Limestone

Current through Register Vol. 47, No. 3, July 24, 2024
Prior to July 1, 1987, sales of all commercial fertilizer and
				  agricultural limestone were exempt from tax. On and subsequent to that date,
				  sales of commercial fertilizer and agricultural limestone are exempt from tax
				  only if the purchaser will utilize the fertilizer or limestone for the health
				  promotion of plants which are produced as part of agricultural production for
				  market. See subrule 17.9(3) for characterizations of "Agricultural production"
				  and "Plants" respectively. Plant hormones are considered to be commercial
				  fertilizer By way of nonexclusive example, commercial fertilizer sold for
				  application on a lawn, golf course, or cemetery would be taxable.
This rule is intended to implement Iowa Code section
				  422.42(3).
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 17 - Exempt Sales › Rule 701-17.5 - Sales to the American Red Cross, the Coast Guard Auxiliary, Navy-marine Corps Relief Society, and U.s.o

Current through Register Vol. 47, No. 3, July 24, 2024
Receipts from the sale of tangible personal property or from
				  rendering, furnishing, or providing taxable services to the American Red Cross,
				  Coast Guard Auxiliary, Navy-Marine Corps Relief Society, and U.S.O. shall be
				  exempt from sales tax.
Purchases made by the Red Cross, Coast Guard Auxiliary,
				  Navy-Marine Corps Relief Society or U.S.O. outside of Iowa for use in Iowa
				  shall be exempt from use tax.
Department of Employment V. United States,
1966, 385 U.S. 355, 87 S.Ct. 464, 17L.Ed.2d 414.
This rule is intended to implement Iowa Code sections
				  422.45(1), 422.45(5), and
				  4234(4)..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 17 - Exempt Sales › Rule 701-17.6 - Sales of Vehicles Subject to Registration-new and Used-by Dealers

Current through Register Vol. 47, No. 3, July 24, 2024
Receipts derived from the sale at retail in Iowa of new and
				  used vehicles subject to registration under the motor vehicle laws of Iowa
				  shall be exempt from sales tax. When the vehicles are registered at the office
				  of the county treasurer or the motor vehicle registration division, Iowa
				  department of transportation, the tax is collected as use tax. Vehicle dealers
				  selling tangible personal property or taxable services in Iowa, in addition to
				  new or used vehicles, shall be required to hold a permit. Upon filing their
				  quarterly returns, dealers shall show the amount of their gross receipts
				  derived from the sale of new and used vehicles subject to registration and
				  shall take appropriate deductions.
The purchaser of a new or used vehicles subject to
				  registration shall be required to pay use tax when the vehicle is registered in
				  Iowa under the Iowa motor vehicle law; and, the county treasurer or the motor
				  vehicle registration division, department of transportation (whichever issues
				  the registration) shall collect use tax.
This rule is intended to implement Iowa Code sections
				  422.45(4),
				  4237. and
				  4238..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 17 - Exempt Sales › Rule 701-17.7 - Sales to Certain Federal Corporations

Current through Register Vol. 47, No. 3, July 24, 2024
The department holds that the following are some of the
				  federal corporations immune from the imposition of sales and use tax in
				  connection with their purchases:
1.
				Central Bank for Cooperatives and Banks for Cooperatives
2. commodity Credit Corporation
3. Farm Credit Banks
4. Farmers Home Administration
5. Federal Credit Unions
6. Federal Crop Insurance
				Corporation
7. Federal Deposit
				Insurance Corporation
8. Federal
				Financing Bank
9. Federal Home Loan
				Banks
10. Federal Intermediate
				Credit Banks
11. Federal Land Banks
				and Federal Land Bank Associations
12. Federal National Mortgage
				Association
13. Federal Reserve
				Bank
14. Federal Savings & Loan
				Insurance Corporation
15.
				Production Credit Association
16.
				Student Loan Marketing Association
17. Tennessee Valley Authority
The federal statutes creating the above corporations contain
				  provisions substantially identical with Section 26 of the Federal Farm Loan Act
				  which has been construed as barring the imposition of state and local sales
				  taxes.
This rule is intended to implement Iowa Code sections
				  422.45(1), 422.45(5), and 423.4(4).
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 17 - Exempt Sales › Rule 701-17.8 - Sales in Interstate Commerce-goods Transported or Shipped From This State

Current through Register Vol. 47, No. 3, July 24, 2024
When tangible personal property is sold within the state and
				  it is transported to a point outside the state, or it is transferred to a
				  common carrier, to the mails, or to parcel post for shipment to a point without
				  the state, sales tax shall not apply, provided the property is not returned to
				  a point within the state except solely in the course of interstate commerce or
				  transportation. See 701-subrule 26.2(3) for a description of an exemption
				  applicable to services performed on the above-described property on or after
				  May 22, 1999.
Example: company A sells point-of-sale computer equipment.
				  The company is located in Des Moines, Iowa. company A enters into a contract
				  with company B to sell the latter company a large number of point-of-sale
				  computers. company B is located in Little Rock, Arkansas. A transfers
				  possession of the computers to a common carrier in Des Moines, Iowa, for
				  shipment to B in Little Rock. Sale of the computers is exempt from Iowa sales
				  tax.
(1)
Proof of
				transportation.
The most acceptable proof of transportation outside
				the state shall be:
a. A waybill or bill of
				lading made out to the retailer's order calling for transport; or
b. An insurance or registry receipt issued by
				the United States postal department, or a post office department's receipts;
				or
c. A trip sheet signed by the
				retailer's transport agency which shows the signature and address of the person
				outside the state who received the transported goods.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 17 - Exempt Sales › Rule 701-17.10 - Materials Used for Seed Inoculations

Current through Register Vol. 47, No. 3, July 24, 2024
All forms of inoculation, whether for promotion of better
				  growth and healthier plants or for prevention or cure of mildew of plants or
				  disease of seeds and bulbs, are intended for the same general purpose. Sales
				  tax shall not be imposed on any material used for inoculation.
This rule is intended to implement Iowa Code sections
				  422.42(3) and
				  4231(1)..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 17 - Exempt Sales › Rule 701-17.12 - Coat or Hat Checkrooms

Current through Register Vol. 47, No. 3, July 24, 2024
The operation of a checkroom is not a taxable service or an
				  admission to any amusement or athletic event; therefore, the gross receipts
				  from this operation shall not be included in the gross receipts on which sales
				  tax is computed.
This rule is intended to implement Iowa Code section
				  422.43.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 17 - Exempt Sales › Rule 701-17.13 - Railroad Rolling Stock

Current through Register Vol. 47, No. 3, July 24, 2024
Railroad rolling stock is that portion of railroad property
				  which is incapable of being affixed or annexed on any one place but is wholly
				  intended for movement on rails to transport persons or property whether for
				  hire or not for hire and includes materials and parts used therefor
				  Locornotives, railroad cars, and materials and parts used therefor shall be
				  exempt from tax. This exemption includes maintenance-of-way equipment which is
				  used to transport persons or property. Also, fuel and lubricants used in
				  railroad rolling stock are materials used in railroad rolling stock and their
				  sales are exempt from tax. Enumerated services are not railroad rolling stock
				  and are not exempt from tax.
This rule is intended to implement Iowa Code section
				  422.45(10).
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 17 - Exempt Sales › Rule 701-17.14 - Chemicals, Solvents, Sorbents, or Reagents Used in Processing

Current through Register Vol. 47, No. 3, July 24, 2024
Chemicals, solvents, sorbents, and reagents directly used and
				  consumed, dissipated, or depleted in processing tangible personal property
				  intended to be sold ultimately at retail shall be exempt from sales and use
				  tax. For the purpose of this rule for periods on or after January 1, 1980, free
				  newspapers or shoppers' guides or both are considered to be retail sales for
				  the purpose of the processing exemption.
(1)
Definitions.
a.
"Chemical"
is a
				substance which 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).
b.
"Solvent"
is a substance (usually liquid) primarily used in dissolving
				something; as water is the appropriate solvent of most salts, alcohol of
				resins, and ether of fats.
c.
"Sorbent"
is a substance which takes up and holds either by
				adsorption or absorption. To be a sorbent for purpose of the exemption, a
				substance must be primarily used as a sorbent.
d.
"Reagent"
is a substance
				used for various purposes, (as 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 which it causes. To be a reagent for purpose of the exemption, a
				substance must be primarily used as a reagent.
For the purpose of this rule, a catalyst is considered to be
				  a chemical, solvent, sorbent, or reagent. A catalyst is a substance which
				  promotes or initiates a chemical reaction, and as such is exempt from tax if
				  consumed, dissipated, or depleted during processing of tangible personal
				  property which is intended to be ultimately sold at retail.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 17 - Exempt Sales › Rule 701-17.15 - Demurrage Charges

Current through Register Vol. 47, No. 3, July 24, 2024
Charges for returning tangible personal property after the
				  agreed-upon date which are true demurrage charges supported by a written
				  agreement do not constitute taxable sales and are exempt from tax.
This rule is intended to implement Iowa Code section
				  422.43.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 17 - Exempt Sales › Rule 701-17.16 - Sale of a Draft Horse

Current through Register Vol. 47, No. 3, July 24, 2024
The gross receipts from the sale of draft horses, when
				  purchased for use and so used as a draft horse, shall not be subject to tax.
				  For the purposes of this rule, horses commonly known as Clydesdale, Belgian,
				  Shire, and Percheron will be considered draft horses. However, upon proper
				  showing, other breeds will be granted the exemption by the director, but the
				  burden of proof lies with the one seeking the exemption.
Jones v. Iowa
				  State Tax commission,
74 N.W.2d 563 (Iowa 1956). These breeds are used
				  as a draft horse when they are used to pull a load. It is not required that the
				  load be of a commercial nature. Such horses used to pull loads in shows or for
				  the conveyance of persons or property are being so used as draft horses.
The effective date of this rule is for periods beginning on
				  or after July 1, 1978.
This rule is intended to implement Iowa Code sections
				  422.45(17) and
				  4234(4)..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 17 - Exempt Sales › Rule 701-17.17 - Beverage Container Deposits

Current through Register Vol. 47, No. 3, July 24, 2024
Tax shall not apply to beverage container deposits. This rule
				  is also applicable to all mandatory beverage container deposits required under
				  the provisions of Iowa Code chapter 455C including deposits on items sold
				  through vending machines.
This rule is intended to implement Iowa Code chapter 455
				  C.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 17 - Exempt Sales › Rule 701-17.18 - Films, Video Tapes and Other Media, Exempt Rental and Sale

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Exempt rental.
The gross
				receipts from the rental of films, video and audio tapes or discs, records,
				photos, copy, scripts, or other media used for the purpose of transmitting that
				which can be seen, heard or read shall not be taxable if the lessee either:
a. Imposes a charge for the viewing or rental
				of the media and that charge will be subject to Iowa sales or use tax,
				or
b. The lessee broadcasts the
				contents of the media for public viewing or listening.
The gross receipts from lessees who are film exhibitors or
				  who rent video tapes and discs would ordinarily be exempt from tax under this
				  rule. The rental of media for reproduction of images into newspapers or
				  periodicals will not be exempt from tax under this rule since neither of
				  criteria
"a "
or
"b"
above will occur The
				  rental of films, video tapes and video discs for home viewing is not exempt
				  from tax.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 17 - Exempt Sales › Rule 701-17.19 - Gross Receipts From the Sale or Rental of Tangible Personal Property or From Services Performed, Rendered, or Furnished to Certain Nonprofit Corporations Exempt From Tax

Current through Register Vol. 47, No. 3, July 24, 2024
(1) On and after
				July 1, 1988, the gross receipts from the sale or rental of tangible personal
				property or from services performed, rendered, or furnished to the following
				nonprofit corporations are exempt from tax.
a. community health centers as defined in 42
				U.S.C.A. Section 254c.
b. Migrant
				health centers as defined in 42 U.S.C.A. Section 254b.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 17 - Exempt Sales › Rule 701-17.20 - Raffles

Current through Register Vol. 47, No. 3, July 24, 2024
Gross receipts from the sale of fair raffle tickets pursuant
				  to Iowa Code section
				  99B5.
				  are not subject to tax.
This rule is intended to implement Iowa Code section
				  422.45(32).
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 17 - Exempt Sales › Rule 701-17.22 - Modular Homes

Current through Register Vol. 47, No. 3, July 24, 2024
On and after July 1, 1988, 40 percent of the gross receipts
				  from the sale of a modular home is exempt from tax. A "modular home" is any
				  structure, built in a factory, made to be used as a place for human habitation
				  which cannot be attached or towed behind a motor vehicle and which does not
				  have permanently attached to its body or frame any wheels or axles.
This rule is intended to implement Iowa Code section
				  422.45.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 17 - Exempt Sales › Rule 701-17.23 - Sales to Other States and Their Political Subdivisions

Current through Register Vol. 47, No. 3, July 24, 2024
On and after July 1, 1990, gross receipts from the sale of
				  tangible personal property or from the furnishing of electrical energy, natural
				  or artificial gas, or communication service to another state or political
				  subdivision of another state are exempt from tax if that other state provides a
				  similar reciprocal exemption for Iowa and its political subdivisions. The
				  states known to provide a similar reciprocal exemption to Iowa and its
				  subdivisions (as of October 1, 1998) are Illinois, Kentucky, North Dakota,
				  South Dakota, and the District of Columbia. This rule is intended to implement
				  Iowa Code section 422.45.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 17 - Exempt Sales › Rule 701-17.24 - Nonprofit Private Museums

Current through Register Vol. 47, No. 3, July 24, 2024
For sales occurring on or after July 1, 1990, the gross
				  receipts of all sales of goods, wares, merchandise, or services used for
				  educational, scientific, historic preservation, or aesthetic purpose to a
				  nonprofit private museum are exempt from tax. A "museum" is an institution
				  organized for educational, scientific, historical preservation, or aesthetic
				  purposes which is predominately devoted to the care and exhibition of a
				  collection of objects in a room, building, or locale. This collection must be
				  open to the public on a regular basis, and its staff must be available to
				  answer questions regarding the collection. See the example at the end of the
				  rule for a characterization of the phrase "open to the public on a regular
				  basis."
Words contained in exemption statutes are strictly construed;
				  all doubt regarding their meaning is resolved in favor of taxation and against
				  exemption.
Ballstadt v. Iowa Department of Revenue,
368 N.W.2d
				  147 (Iowa 1985) and
Iowa Movers and Warehousemen's Association v.
				  Briggs, 237
N.W.2d 759 (Iowa 1976). Furthermore, an institution is not
				  a "museum" unless it can be included in the "ordinary and usual public concept"
				  of a museum, regardless of the abstract definition of the term within which the
				  institution might fit. See
Sorg v. Department of Revenue,
269
				  N.W.2d 129 (Iowa 1978). Using the above principles, the department excludes
				  from its definition of "museum" the following: aquariums, arboreturns,
				  botanical gardens, nature centers, planetariums, and zoos. Included within the
				  meaning of "museum" are: art galleries, historical museums, museums of natural
				  history, and museums devoted to one particular subject or one person.
Example: The Blank County History Museum is open every
				  Tuesday afternoon from 1 p.m. to 4:30 p.m., other than on national holidays.
				  The museum is open periodically or at fixed intervals, so it is open "on a
				  regular basis," even though, each week, it is open only briefly.
This rule is intended to implement Iowa Code section
				  422.45(43).
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 17 - Exempt Sales › Rule 701-17.25 - Exempt Sales by Excursion Boat Licensees

Current through Register Vol. 47, No. 3, July 24, 2024
The following sales by licensees authorized to operate
				  excursion gambling boats are exempt from Iowa sales and use tax:
(1) charges for admission to excursion
				gambling boats, and
(2) gross
				receipts from gambling games authorized by the state racing and gaming
				commission and conducted on excursion gambling boats.
Gross receipts from charges other than those for admissions
				  or authorized gambling games would ordinarily be taxable. The following is a
				  nonexclusive list of taxable licensee sales: parking fees, sales of souvenirs,
				  vending machine sales, prepared meals, liquor and other beverage sales, and
				  gross receipts from nongambling video games and other types of games which do
				  not involve gambling.
This rule is intended to implement Iowa Code section
				  99F.10(6).
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 17 - Exempt Sales › Rule 701-17.26 - Bedding for Agricultural Livestock or Fowl

Current through Register Vol. 47, No. 3, July 24, 2024
See subrules 17.9(1) and 17.9(2) and paragraph
				  17.9(3)
"a"
for definitions applicable to this rule. Between
				  July 1, 1985, and June 30, 1992, inclusive, only the sale of woodchips or
				  sawdust used in the production of agricultural livestock or fowl was exempt
				  from tax. The sale of other materials used as bedding in the production of
				  agricultural livestock or fowl was not exempt from tax. On and after July 1,
				  1992, the gross receipts from the sale of not only woodchips or sawdust but
				  also of hay, straw, paper or any other materials used for bedding in the
				  production of agricultural livestock or fowl is exempt from tax.
This rule is intended to implement Iowa Code section
				  422.45(30).
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 17 - Exempt Sales › Rule 701-17.27 - Statewide Notification Center Service Exemption

Current through Register Vol. 47, No. 3, July 24, 2024
On and after January 1, 1995, taxable services rendered,
				  furnished or performed by a statewide notification center established under
				  Iowa Code section
				  4803.
				  which provides notice to operators of underground facilities who excavate in
				  the area of these facilities are exempt from tax. This exemption is also
				  applicable to taxable services rendered, furnished, or performed by any vendor
				  selected by the board of directors of the statewide notification center to
				  provide notification services.
This rule is intended to implement Iowa Code section 422.45
				  as amended by 1995 Iowa Acts, House File 550.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 17 - Exempt Sales › Rule 701-17.28 - State Fair and Fair Societies

Current through Register Vol. 47, No. 3, July 24, 2024
For periods beginning on or after July 1, 1996, the gross
				  receipts from sales or services rendered, furnished, or performed by the state
				  fair organized under Iowa Code chapter 173 or a county, district or fair
				  society organized under Iowa Code chapter 174 are exempt from sales tax. This
				  exemption does not apply to individuals, entities, or others that sell or
				  provide services at the state, county, district fair, or fair societies
				  organized under Iowa Code chapters 173 and 174. See 701-subrule 16.26(2) for
				  examples of this rule's application.
This rule is intended to implement Iowa Code section 422.45
				  as amended by 1996 Iowa Acts, chapter 1124.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 17 - Exempt Sales › Rule 701-17.29 - Reciprocal Shipment of Wines

Current through Register Vol. 47, No. 3, July 24, 2024
A winery licensed or permitted pursuant to laws regulating
				  alcoholic beverages in a state which affords this state an equal reciprocal
				  shipping privilege may ship into this state by private common carrier, to a
				  person 21 years or age or older, not more than 18 liters of wine per month, for
				  consumption or use by such person. Such wine shall not be resold. Shipment of
				  wine pursuant to this rule is not subject to sales tax under Iowa Code section
				  422.43 or use tax under Iowa Code section
				  4232..
"Equal reciprocal shipping privilege" means allowing wineries
				  located in this state to ship wine into another state, not for resale, but for
				  consumption or use by a person 21 years of age or older.
This rule is intended to implement Iowa Code section
				  123187.
				  as enacted by 1996 Iowa Acts, chapter 1101.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 17 - Exempt Sales › Rule 701-17.30 - Nonprofit Organ Procurement Organizations

Current through Register Vol. 47, No. 3, July 24, 2024
On and after July 1, 1998, the gross receipts from sales of
				  tangible personal property to, or from services rendered, furnished, or
				  performed for, a statewide, nonprofit organ procurement organization are exempt
				  from tax.
An "organ procurement organization" is an organization which
				  performs or coordinates the activities of retrieving, preserving, or
				  transplanting organs, which maintains a system of locating prospective
				  recipients for available organs, and which is registered with the United
				  Network for Organ Sharing and designated by the United States Secretary of
				  Health and Human Services pursuant to 42 CFR § 485, subpt. D.
This rule is intended to implement Iowa Code section 422.45
				  as amended by 1998 Iowa Acts, chapter 1156.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 17 - Exempt Sales › Rule 701-17.31 - Sale of Electricity to Water Companies

Current through Register Vol. 47, No. 3, July 24, 2024
On or after July 1,1998, the gross receipts from the sale of
				  electricity to water companies assessed for property tax pursuant to Iowa Code
				  sections
				  42824.,
				  42826., and
				  42828.,
				  which is used solely for the purpose of pumping water from a river or well is
				  exempt from sales tax. For the purposes of this rule, "river" means a natural
				  body of water or waterway that is commonly known as a river "Well," for the
				  purposes of this rule, means an issue of water from the earth; a mineral
				  spring; a pit or hole simk into the earth to reach a water supply; a shaft or
				  hole simk to obtain oil, water, gas, etc.; a shaft or excavation in the earth,
				  in mining, from which run branches...
Pacific Gas and Electric company
				  v. Hufford,
319 P.2d 1033, 1040 (Calif. 1957), citing Webster's New
				  International Dictionary, 2nd ed., unabridged. Also see rule
				  701-173.
				  (422,423) for additional information regarding the processing exemption.
This rule is intended to implement Iowa Code section 422.45
				  as amended by 1998 Iowa Acts, chapter 1161.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 17 - Exempt Sales › Rule 701-17.32 - Food and Beverages Sold by Certain Organizations Are Exempt

Current through Register Vol. 47, No. 3, July 24, 2024
Retroactively to July 1, 1988, the gross receipts from sales
				  of food and beverages for human consumption by certain organizations that
				  promote Iowa products and any other food or beverage sold in conjunction with
				  the promoted Iowa product by the organization.
(1) To claim the exemption, an organization
				must meet all of the following qualifications:
a. The organization must be
				nonprofit,
b. The organization must
				principally promote a food or beverage product for human consumption that is
				produced, grown, or raised in Iowa, and
c. The organization must be exempt from
				federal income tax under Section 501(c) of the Internal Revenue Code.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 17 - Exempt Sales › Rule 701-17.33 - Sales of Building Materials, Supplies and Equipment to Not-for-profit Rural Water Districts

Current through Register Vol. 47, No. 3, July 24, 2024
Retroactive to July 1, 1998, sales of building materials,
				  supplies, and equipment to not-for-profit rural water districts (those
				  organized under Iowa Code chapter 504A and as provided by Iowa Code chapter
				  357A), which are used by the districts for the construction of their
				  facilities, are exempt from tax. See rule
				  701-193.
				  (422,423) for definitions of the terms "building materials," "building
				  supplies," and "building equipment" which are applicable to this rule.
				  Additionally, for the purposes of this rule, cranes, underground boring
				  machines, water main pulling equipment, and similar machinery used by a rural
				  water district for the construction of its facilities are "building equipment."
				  This rule does not exempt rentals of building equipment from tax, but a rural
				  water district's rentals of building equipment may be exempt from tax if the
				  rental is on or in connection with new construction, alteration,
				  reconstruction, remodeling, or expansion of real property or a structure. See
				  rule
				  701-1913.
				  (422,423).
This rule is intended to implement Iowa Code section 422.45
				  as amended by 1999 Iowa Acts, chapter 59.