reglab/statecodes huggingface dataset:
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 285 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-285.9 - Computer Software and Hardware

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
In general.
a.
Applicability of tax.
For
				the purposes of this rule, the sales price of the tangible personal property,
				specified digital products, and services found within Iowa Code section
				423.2 is subject to
				tax.
b.
Definitions.
"Program"
is interchangeable with the term
				  "software" for purposes of this rule.
"Rental or lease"
means the same as defined
				  in Iowa Code section 423.1(24).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 285 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-285.10 - Florists

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
				Florists are engaged in the business of selling tangible personal property at
				retail and shall be liable for payment of tax measured by the receipts from the
				sale of flowers, wreaths, bouquets, potted plants and other items of tangible
				personal property.
(2) When
				florists conduct transactions through a florists' telephonic delivery
				association, the following rules shall apply when computing tax liability:
a. On all orders taken by an Iowa florist and
				telephoned to a second florist in Iowa for delivery in the state, the sending
				florist shall be liable for tax, measured at the current rate of tax on gross
				receipts from the total amount collected from the customer, except the cost of
				a telegram when a separate charge is made therefor.
b. In cases where a florist receives an order
				pursuant to which the florist gives telephonic instructions to a second florist
				located outside Iowa for delivery to a point outside Iowa, tax is not owing
				with respect to any receipts which the florist may realize from the
				transaction.
c. In cases where Iowa
				florists receive telephonic instructions from other florists located either
				within or outside of Iowa for the delivery of flowers, the receiving florist
				will not be held liable for tax with respect to any receipts which the florist
				may realize from the transaction.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 285 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-285.10 - Envelopes for Advertising

Current through Register Vol. 47, No. 3, July 24, 2024
Some envelopes that contain advertising are exempt from tax.
				  Envelopes that are not primarily used for advertising are taxable. The primary
				  use of the envelopes should control whether they will be taxable or
				  exempt.
EXAMPLE 1: XYZ mails coupons and advertisements to persons
				  giving discounts on a certain item that is sold at retail. The envelope used to
				  package these materials is exempt from tax since it is primarily used to
				  contain advertising materials.
EXAMPLE 2: XYZ mails a monthly billing statement to its
				  charge account customers. In addition to the billing statement, XYZ encloses an
				  advertisement in the envelope. The envelope has a dual purpose:
(1) the collection of accounts receivable
				and
(2) the distribution of
				advertising. However, the envelope is not primarily used for advertising but
				for billing the customer, therefore, the exemption does not apply.
This rule is intended to implement Iowa Code section
				  423.3(42).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 285 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-285.11 - Landscaping Materials

Current through Register Vol. 47, No. 3, July 24, 2024
The gross receipts from the sale of sod, dirt, trees,
				  shrubbery, bulbs, sand, rock, woodchips and other similar landscaping
				  materials, when used for landscaping and sold to final consumers, shall be
				  subject to sales tax. For the purpose of this rule, "final consumer" ordinarily
				  means the owner of the land to which the landscaping materials are applied, or
				  a general building contractor when the landscaping contractor contracts with
				  the general building contractor. When a landscaping contractor uses materials
				  to fulfill a contract, the landscape contractor is considered the retailer of
				  the landscaping materials and shall be obligated to collect sales tax on the
				  selling price from the final consumer.
When the retailer of sod, dirt, trees, shrubbery, bulbs,
				  sand, rock, woodchips and other similar landscaping materials installs these
				  items as a part of a contract for landscaping or improving land for a lump sum,
				  the entire gross receipts shall be subject to tax. Any retailer's charges for
				  "landscaping" shall be taxable. See rule
				  701-26.62 (422) for a
				  description of this service. However, a retailer's charges for nontaxable
				  services are not taxable if contracted for separately; or, if no written
				  contract exists, the charges are itemized separately on the invoice.
EXAMPLE: A sodding contractor agrees to furnish and install
				  20 yards of sod for the lump sum of $20.00 per yard. The sodding contractor
				  must charge the customer $20.00 sales tax (5% x $400.00).
EXAMPLE: XYZ Company enters into a contract for the
				  landscaping of an existing office building. XYZ Company agrees to furnish
				  shrubs at $25.00 each, white rock for $5.00 per bag and woodchips for $4.00 per
				  bag. XYZ Company also contracts to install all of the landscaping materials for
				  a fee of $25.00 per hour. XYZ Company's hourly fee is taxable if paid for the
				  service of "landscaping" or for some other taxable service, e.g., excavation.
				  If the service is not taxable, the charge is excluded from tax because it was
				  separately contracted for.
The gross receipts from the sale of uncut sod and unexcavated
				  trees, shrubs, and rock shall not be subject to sales or use tax. This is
				  considered a sale of intangible property and not the sale of tangible personal
				  property.
This rule does not apply to the gross receipts from the sale
				  of plants and trees which are eligible for purchase with food coupons under
				  rule 701-20.1 (422,423).
This rule is intended to implement Iowa Code sections
				  422.42,
				  422.45(12) and
				  423.1.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 285 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-285.11 - Newspapers, Free Newspapers and Shoppers' Guides

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Sales
				price of newspapers.
The sales price from the sales of newspapers,
				free newspapers, and shoppers' guides are exempt from tax. The sales price from
				the sales of magazines, newsletters, and other periodicals that are not
				newspapers are taxable.
(2)
General characteristics of a newspaper.
"Newspaper" is a term
				with a common definition. A "newspaper" is a periodical, published at short,
				stated, and regular intervals, usually daily or weekly. It is printed on
				newsprint with news ink. The format of a newspaper is that of sheets folded
				loosely together without stapling. A newspaper is admitted to the U.S. mails as
				second-class material.
(3)
Characteristics of newspaper publishing companies.
Companies
				in the business of publishing newspapers are differently structured from other
				companies. Often, companies publishing larger newspapers will subscribe to
				various syndicates or "wire services." A larger newspaper will employ a general
				editor and a number of subordinate editors as well, for example, sports and
				lifestyle editors; business, local, agricultural, national, and world news
				editors; and editorial page editors. A larger newspaper will also employ a
				variety of reporters and staff writers. Smaller newspapers may or may not have
				these characteristics or may consolidate these functions.
(4)
Characteristics that distinguish
				a newsletter from a newspaper.
A "newsletter" is generally distributed
				to members or employees of a single organization and not usually to a large
				cross section of the general public. It is often published at irregular
				intervals by a volunteer, rather than the paid individual who usually publishes
				a newspaper. A newsletter is often printed on sheets that are held together at
				one point only by a staple, rather than folded together.
This rule is intended to implement Iowa Code section
				  423.3(55).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 285 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-285.12 - Hatcheries

Current through Register Vol. 47, No. 3, July 24, 2024
The gross receipts from the sale of egg-type cockerel chicks,
				  broiler chicks and turkey poults shall be subject to tax. If sale of domestic
				  poultry is for breeding, see rule
				  701-17.9 (422,423).
When pullets and poults are sold for production purposes, the
				  receipts from the sales shall be exempt from tax.
This rule is intended to implement Iowa Code sections
				  422.42(3),
				  422.43,
				  423.1 and
				  423.2.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 285 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-285.13 - Sales by the State of Iowa, Its Agencies and Instrumentalities

Current through Register Vol. 47, No. 3, July 24, 2024
The state of Iowa, its agencies and instrumentalities, are
				  required to collect and remit tax on the gross receipts from taxable retail
				  sales of tangible personal property and taxable services.
This rule does not apply to sales made by cities and counties
				  in the state of Iowa which are specifically exempted from collecting tax by
				  Iowa Code section 422.45(20).
This rule is intended to implement Iowa Code chapters 422 and
				  423.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 285 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-285.14 - Sales of Livestock and Poultry Feeds

Current through Register Vol. 47, No. 3, July 24, 2024
Tax shall not apply to the sale of feed for any form of
				  animal life when the product of the animals constitutes food for human
				  consumption. Tax shall apply on feed sold for consumption by pets.
Antibiotics, when administered as an additive to feed or
				  drinking water, and vitamins and minerals sold for livestock and poultry shall
				  be exempt from tax.
This rule is intended to implement Iowa Code sections
				  422.42(3),
				  422.43,
				  423.1 and
				  423.2.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 285 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-285.15 - Student Fraternities and Sororities

Current through Register Vol. 47, No. 3, July 24, 2024
Student fraternities and sororities are not considered to be
				  engaged in the business of selling tangible personal property at retail within
				  the meaning of the sales tax law when they provide their members with meals and
				  lodging for which a flat rate or lump sum is charged. A person engaged in the
				  selling of foods and beverages to such organizations for use in the preparation
				  of meals is making exempt sales at retail and shall not be liable for tax if
				  the food purchases would be exempt under rule
				  701-20.1 (422,423).
Student fraternities or sororities engaged in the business of
				  serving meals to persons other than members for which separate charges are
				  made, or owning and operating canteens through which tangible personal property
				  is sold are deemed to be making taxable sales.
When student fraternities or sororities do not provide their
				  own meals but are provided by caterers, concessionaires or other persons, such
				  caterers, concessionaires or other persons shall be liable for the collection
				  and remittance of tax with respect to their receipts from meals furnished. A
				  similar liability is attached to persons engaged in the business of operating
				  boarding houses, whether for students or other persons.
This rule is intended to implement Iowa Code sections
				  422.42(3),
				  422.43,
				  423.1 and
				  423.2.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 285 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-285.16 - Photographers and Photostaters

Current through Register Vol. 47, No. 3, July 24, 2024
Tax shall apply to the sale of photographs and photostat
				  copies, whether or not produced to the special order of the customer and to
				  charges for the making of photographs or photostat copies out of materials
				  furnished by the customer. A deduction shall not be allowed for the expenses
				  incurred by the photographer, such as rental of equipment or salaries or wages
				  paid to assistants or models, whether or not the expenses are itemized in
				  billings to customers.
Tax shall not apply to the sale of tangible personal property
				  to photographers and photostat producers which becomes an ingredient or
				  component part of photographs or photostat copies sold, such as mounts, frames
				  and sensitized paper; but tax shall apply to the sale of materials to
				  photographers or producers which is used in the processing of photographs or
				  photostat copies.
(1)
Sales of
				photographs to newspaper or magazine publishers for reproduction.
The
				sale of photographs by a person engaged in the business of making and selling
				photographs to newspaper or magazine publishers for reproduction shall be
				taxable.
(2) Reserved.
This rule is intended to implement Iowa Code sections
				  422.42(3),
				  422.43,
				  423.1 and
				  423.2.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 285 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-285.17 - Gravel and Stone

Current through Register Vol. 47, No. 3, July 24, 2024
When a contract is entered between a contractor and a
				  governmental body and the contract calls for a stockpile delivery along a road
				  to be improved, it is a sale of tangible personal property to the governmental
				  body. Transactions of this type are exempt from tax. When a contract not only
				  provides for the sale and delivery of materials but also the conversion of the
				  materials into realty improvements, the contractor is the ultimate consumer of
				  the material used and shall be liable for tax. Tax shall apply on the purchase
				  price of the material.
This rule is intended to implement Iowa Code sections
				  422.42(3),
				  422.43,
				  422.45(5),
				  423.1 and
				  423.2.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 285 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-285.18 - Sale of Ice

Current through Register Vol. 47, No. 3, July 24, 2024
The sale of ice for human consumption which may be purchased
				  with food coupons is exempt from tax. The sale of ice used for cooling is
				  subject to tax. See rule
				  701-20.1 (422,423).
This rule is intended to implement Iowa Code sections
				  422.42(3),
				  422.43,
				  422.45(12),
				  423.2 and
				  423.4.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 285 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-285.19 - Antiques, Curios, Old Coins or Collector's Postage Stamps

Current through Register Vol. 47, No. 3, July 24, 2024
Curios, antiques, art work, coins, collector's postage stamps
				  and such articles sold to or by art collectors, philatelists, numismatists and
				  other persons who purchase or sell such items of tangible personal property for
				  use and not primarily for resale are sales at retail and shall be subject to
				  tax.
(1) Stamps, whether canceled or
				uncanceled, which are sold by a collector or person engaged in retailing stamps
				to collectors shall be taxable.
(2)
				The distinction between stamps which are purchased by a collector and stamps
				which are purchased for their value as evidence of the privilege of the owner
				to have certain mail carried by the United States government is that which
				determines whether or not a stamp is taxable or not taxable. A stamp becomes an
				article of tangible personal property having market value when, because of the
				demand, it can be sold for a price greater than its face value. On the other
				hand, when a stamp has only face value, as evidence of the right to certain
				services or an indication that certain revenue has been paid, it shall not be
				subject to either sales or use tax.
This rule is intended to implement Iowa Code sections
				  422.42(3),
				  422.43,
				  423.1 and
				  423.2.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 285 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-285.22 - Physicians, Dentists, Surgeons, Ophthalmologists, Oculists, Optometrists, and Opticians

Current through Register Vol. 47, No. 3, July 24, 2024
Physicians, dentists, surgeons, ophthalmologists, oculists,
				  optometrists, and opticians shall not be liable for tax on services rendered
				  such as examinations, consultations, diagnosis, surgery and other kindred
				  services, nor on the applicable exemptions prescribed under 701-Chapter
				  20.
The purchase of materials, supplies, and equipment by these
				  persons is subject to tax unless the particular item is exempt from tax when
				  purchased by an individual for the individual's own use. For example, the
				  purchase for use in the office of prescription drugs would not be subject to
				  tax nor would the purchase of prosthetic devices such as artificial limbs or
				  eyes.
Sales of tangible personal property to dentists, which are to
				  be affixed to the person of a patient as an ingredient or component part of a
				  dental prosthetic device, are exempt from tax. These include artificial teeth,
				  and facings, dental crowns, dental mercury and acrylic, porcelain, gold,
				  silver, alloy, and synthetic filling materials.
Sales of tangible personal property to physicians or
				  surgeons, which are prescription drugs to be used or consumed by a patient, are
				  exempt from tax.
Sales of tangible personal property to ophthalmologists,
				  oculists, optometrists, and opticians, which are prosthetic devices designed,
				  manufactured, or adjusted to fit a patient, are exempt from tax. These include
				  prescription eyeglasses, contact lenses, frames, and lenses.
The purchase by such persons of materials such as pumice,
				  tongue depressors, stethoscopes, which are not in themselves exempt from tax,
				  would be subject to tax when purchased by such professions.
The purchase of equipment, such as an X-ray machine, X-ray
				  photograph or frames for use by such persons is subject to tax. On the other
				  hand, the purchase of an item of equipment that is utilized directly in the
				  care of an illness, injury or disease, which item would be exempt if purchased
				  directly by the patient, is not subject to tax.
This rule is intended to implement Iowa Code sections
				  422.42(3),
				  422.43,
				  422.45(13-15),
				  423.2 and
				  423.4(4).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 285 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-285.23 - Veterinarians

Current through Register Vol. 47, No. 3, July 24, 2024
Purchase of food, drugs, medicines, bandages, dressings,
				  serums, tonics, and the like, but not to include tools and equipment, which are
				  used in treating livestock raised as part of agricultural production is exempt
				  from tax. Where these same items are used in treating animals maintained as
				  pets for hobby purposes, sales tax is due. See rule
				  701-18.48 (422,423) for an
				  exemption for machinery used in livestock or dairy production which may be
				  applicable to veterinarians but should be claimed only with caution by
				  them.
A veterinarian engaged in retail sales, in addition to
				  furnishing professional services, must account for sales tax on the gross
				  receipts from such sales.
This rule is intended to implement Iowa Code sections
				  422.42(3) and
				  422.43.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 285 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-285.24 - Hospitals, Infirmaries and Sanitariums

Current through Register Vol. 47, No. 3, July 24, 2024
Hospitals, infirmaries, sanitariums, and like institutions
				  are engaged primarily in rendering services. These facilities shall not be
				  subject to tax on their purchases of items of tangible personal property exempt
				  under 701-Chapter 20 when the items would be exempt if purchased by the
				  individual and if the item is used substantially for the tax-exempt purpose.
				  See rule 18.59(422,423) for an exemption applicable to sales of goods and
				  furnishing of services on and after July 1, 1998, to a nonprofit
				  hospital.
Hospitals, infirmaries, and sanitariums may be the purchasers
				  for use or consumption of tangible personal property used or consumed in
				  furnishing services.
Modern Dairy Co. v. Department of
				  Revenue,
413 Ill. 55, 108 N.E.2d 8 (1952). However, tangible personal
				  property can be purchased for resale by these facilities and, if purchased for
				  resale, is exempt from tax on the purchases.
Burrows Co. v.
				  Hollingsworth,
415 Ill. 202, 112 N.E.2d 706 (1953);
Fefferman
				  v. Marohn,
408 Ill. 542, 97 N.E.2d 785 (1951). Property is purchased
				  for resale if the conditions in subrule 18.31(1) are applicable. See also
				  701-subrule 15.3(2) with respect to resale exemption certificates.
Depending upon the circumstances, a nonprofit facility may be
				  a charitable institution or organization; a profit facility is not.
Northwest Community Hospital v. Board of Review of City of Des
				  Moines,
229 N.W.2d 738 (Iowa 1975);
Readlyn Hospital v.
				  Hoth,
223 Iowa 341, 272 N.W. 90 (1937). Sales by these nonprofit
				  facilities would be exempt from tax if the requirements of Iowa Code section
				  422.45(3) are
				  met. See rule 701-17.1 (422,423).
This rule is intended to implement Iowa Code section
				  422.45 as amended by 1998 Iowa
				  Acts, House File 2513, and chapter 423.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 285 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-285.26 - Service Charge and Gratuity

Current through Register Vol. 47, No. 3, July 24, 2024
When the purchase of any food, beverage or meals
				  automatically and invariably results in the inclusion of a mandatory service
				  charge to the total price for such food, beverage or meal, the amounts so
				  included shall be subject to tax. The term "service charge" means either a
				  fixed percentage of the total price of or a charge for food, beverage or
				  meal.
The mandatory service charge shall be considered:
(1) a required part of a transaction arising
				from a taxable sale and a contractual obligation of a purchaser to pay to a
				vendor arising directly from and as a condition of the making of the sale
				and
(2) a fixed labor cost included
				in the price for food, beverage or meal even though such charge is separately
				stated from the charge for the food, beverage or meal.
When a gratuity is voluntarily given for food, beverage or
				  meal it shall be considered a tip and not subject to tax.
Cohen v. Playboy Club International, Inc.,
19 Ill. App. 3d 215, 311 N.E.2d 336;
Baltimore Country Club, Inc. v.
				  Comptroller of Treasury,
272 Md. 65, 321 A.2d 308.
This rule is intended to implement Iowa Code section
				  422.43.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 285 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-285.30 - Taxation of American Indians

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Definitions.
"American Indians"
means all persons of
				  Indian descent who are members of any recognized tribe.
"Settlement"
means all lands within the
				  boundaries of the Mesquakie Indian settlement located in Tama County, Iowa and
				  any other recognized Indian settlement or reservation within the boundaries of
				  the state of Iowa.
(2)
Retail sales tax-tangible personal property.
Retail sales of
				tangible personal property made on a recognized settlement or reservation to
				Indians who are members of the tribe located on that settlement or reservation,
				where delivery occurs on the reservation, are exempt from tax
(Bryan v.
				Itasca County,
426
				U.S. 373,
				376-77 (1976);
Moe v.
				Confederated Salish & Kootenai Tribes,
425 U.S.
				463,
				475-81 (1976)). Retail sales of
				tangible personal property made on a recognized settlement or reservation to
				Indians where delivery occurs off the reservation are subject to tax. Retail
				sales of tangible personal property made to non-Indians on a recognized
				settlement or reservation are subject to tax regardless of where the delivery
				occurs. Sales made to non-Indians are taxable even though the seller may be a
				member of a recognized settlement or reservation.
(3)
Retail sales
				tax-services.
Sales of enumerated taxable services and sales made by
				municipal corporations furnishing gas, electricity, water, heat, or
				communication services to Indians who are members of the tribe located on the
				recognized settlement or reservation where delivery of the service occurs are
				exempt from tax
(Bryan v. Itasca County,
426 U.S.
				373,
				376-77 (1976);
Moe v.
				Confederated Salish & Kootenai Tribes,
425 U.S.
				463,
				475-81 (1976)). Sales of
				enumerated taxable services or sales made by municipal corporations furnishing
				gas, electricity, water, heat, or communication services to Indians where
				delivery of the services occurs off a recognized settlement or reservation are
				subject to tax.
(4)
Off-reservation purchases.
Purchases made by Indians off a
				recognized settlement or reservation are subject to tax if delivery occurs off
				the reservation. Purchases made by Indians off a recognized settlement or
				reservation are not subject to tax if delivery is made on the reservation to
				Indians who are members of the tribe located on that reservation.
See rule
				  701-33.5 (423) for the taxation
				  of tangible personal property and services where the state use tax may be
				  applicable.
This rule is intended to implement Iowa Code sections
				  422.42,
				  422.43, and
				  422.45(1).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 285 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-285.34 - Automatic Data Processing

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
In general.
a.
Applicability of tax.
For
				the purposes of this rule, the tax on automatic data processing is applicable
				to the gross receipts of:
(1) Sales and
				rentals of data processing equipment (hardware).
(2) Sales and rentals of tangible personal
				property produced or consumed by data processing equipment or prewritten
				(canned) computer software used in data processing operations.
(3) Certain enumerated services performed on
				or connected with data processing such as rental of tangible personal property,
				machine repair, services of machine operators, office and business machines
				repair, electrical installation, and any other taxable service enumerated in
				Iowa Code section 422.43.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 285 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-285.35 - Drainage Tile

Current through Register Vol. 47, No. 3, July 24, 2024
The sale or installation of drainage tile which is to be used
				  in disease control, weed control, or the health promotion of plants or
				  livestock produced as part of agricultural production for market is exempt from
				  tax. Drainage tile, when purchased for these purposes, is therefore not subject
				  to tax. In all other cases, drainage tile will be considered a building
				  material and subject to tax under the provisions of Iowa Code subsection
				  422.42(9).
This rule is intended to implement Iowa Code sections
				  422.42(3),
				  422.42(9), and
				  423.2.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 285 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-285.38 - Urban Transit Systems

Current through Register Vol. 47, No. 3, July 24, 2024
A privately owned urban transit system which is not an
				  instrumentality of federal, state or county government is subject to sales tax
				  on fuel purchases which are within the urban transit systems charter.
Tax shall not apply to fuel purchases, made by a privately
				  owned urban transit company, for use outside the urban transit system charter
				  in which a fuel tax has been imposed and paid and no refund has been or will be
				  allowed.
Whether an urban transit company will be considered an
				  instrumentality of federal, state or county government for the purpose of
				  receiving sales tax exemption on its fuel purchases, which are also exempted
				  from fuel tax and used for public purposes, depends upon consideration of the
				  following:
1. Whether it is created by
				government.
2. Whether it is wholly
				owned by government.
3. Whether it
				is operated for profit.
4. Whether
				it is primarily engaged in the performance of some essential governmental
				function.
5. Whether the payment of
				tax will impose an economic burden upon the corporation, or that payment of tax
				serves to materially impair the usefulness or efficiency of the corporation or
				the payment of tax materially restricts the corporation in the performance of
				its duties.
These above enumerated considerations are not all inclusive
				  and the presence of some and absence of others does not necessarily establish
				  the exemption.
Unemployment compensation of North Carolina v. Wachovia
				  Bank and Trust Company,
2 S.E.2d 592, 595, 215 No. Car. 491 (1939);
				  1976 O.A.G. 823, 827, 828.
This rule is intended to implement Iowa Code subsection
				  422.45(1).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 285 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-285.40 - Renting of Rooms

Current through Register Vol. 47, No. 3, July 24, 2024
The gross receipts from the renting of any and all rooms,
				  including but not limited to sleeping rooms, banquet rooms or conference rooms
				  in any hotel, motel, inn, public lodging house, rooming or tourist court, or in
				  any place where sleeping accommodations are furnished to transient guests,
				  whether with or without meals, are subject to the tax. The rental of a mobile
				  home or of manufactured housing which is tangible personal property is treated
				  as room rental rather than tangible personal property rental. The renting of
				  all rooms would be exempt from the tax if rented by the same person for a
				  period of more than 31 consecutive days. The renter must contract to rent for a
				  single period of 31 days or more. The renter may not accumulate these 31 days
				  by contracting for two or more rental transactions. The incremental manner in
				  which the hotel, motel, inn, public lodging house, rooming or tourist court, or
				  any place where sleeping accommodations are furnished to transient guests bills
				  its customers does not influence the accumulation of days that is required to
				  claim the exemption.
This rule is intended to implement Iowa Code section
				  422.43.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 285 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-285.41 - Envelopes for Advertising

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Some envelopes which contain advertising
				are exempt from tax. Envelopes which are not primarily used for advertising are
				taxable. The primary use of the envelopes should control whether they will be
				taxable or exempt.
Iowa Movers and Warehouseman's Assn. v.
				Briggs,
237 N.W.2d 759 (Iowa 1976).
Example 1: XYZ mails coupons and advertisements to persons
				  giving discounts on a certain item which is sold at retail. The envelope used
				  to package these materials is exempt from tax since it is primarily used to
				  contain advertising materials.
Example 2: XYZ mails a monthly billing statement to its
				  charge account customers. In addition to the billing statement, XYZ Company
				  encloses an advertisement in the envelope. The envelope has a dual
				  purpose:
(1) the collection of
				accounts receivable and
(2) the
				distribution of advertising. However, the envelope is not primarily used for
				advertising but for billing the customer, therefore, the exemption does not
				apply.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 285 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-285.42 - Newspapers, Free Newspapers and Shoppers' Guides

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
General
				observations.
The gross receipts from the sales of newspapers, free
				newspapers, and shoppers' guides are exempt from tax. The gross receipts from
				the sales of magazines, newsletters, and other periodicals which are not
				newspapers are taxable. Recent cases decided by the United States Supreme Court
				and the Supreme Court of Iowa prohibit exempting from taxation the sale of any
				periodical if that exemption from taxation is based solely upon the contents of
				that periodical. See
Arkansas Writers' Project, Inc. v.
				Ragland,
481 U.S.
				221,
				107 S.Ct. 1722, 95 L.Ed.2d 209
				(1987) and
Hearst v. Iowa Department of Revenue & Finance,
461 N.W.2d 295 (Iowa 1990).
(2)
General characteristics ofa newspaper.
"Newspaper" is a term
				with a common definition. A "newspaper" is a periodical, published at short,
				stated, and regular intervals, usually daily or weekly. It is printed on
				newsprint with news ink. The format of a newspaper is that of sheets folded
				loosely together without stapling. A newspaper is admitted to the U.S. mails as
				second-class material. Other frequent characteristics of newspapers are the
				following:
a. Newspapers usually contain
				photographs. The photographs are more often in black and white rather than
				color.
b. Information printed on
				newspapers is usually contained in columns on the newspaper pages.
c. The larger the cross section of the
				population which reads a periodical in the area where the periodical
				circulates, the more likely it is that the department will consider that
				periodical to be a "newspaper."
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 285 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-285.44 - Sale or Rental of Farm Machinery and Equipment

Current through Register Vol. 47, No. 3, July 24, 2024
On and after July 1, 1987, the gross receipts from the sale
				  or rental of farm machinery and equipment will be exempt from tax. Effective
				  July 1, 1996, the gross receipts from the sale of property which is a
				  container, label, carton, pallet, packing case, wrapping, baling wire, twine,
				  bag, bottle, shipping case or other similar article or receptacle sold for use
				  in agricultural, livestock or dairy production are not subject to sales
				  tax.
(1)
Characteristics of
				and limitations upon farm machinery and equipment.
To be eligible for
				exemption from or refund of tax under this rule the machinery or equipment
				must:
a. Be directly and primarily used in
				production of agricultural products; and
b. Be one of the following:
(1) A self-propelled implement; or
(2) An implement customarily drawn or
				attached to a self-propelled implement; or
(3) A grain dryer; or
(4) An auxiliary attachment which improves
				the performance, safety, operation, or efficiency of a qualifying implement or
				grain dryer if sale or first use in Iowa is on or after July 1, 1995;
				or
(5) A replacement part for any
				item described in subparagraph (1), (2), (3), or (4).
(6) Effective July 1, 1996, the gross
				receipts from the sale of property which is a container, label, carton, pallet,
				packing case, wrapping, baling wire, twine, bag, bottle, shipping case, or
				other similar article or receptacle sold for use in agricultural, livestock or
				dairy production.
c. No
				vehicle subject to registration, as defined in Iowa Code subsection
				423.1(7),
				implement customarily drawn or attached to a vehicle, auxiliary attachment, or
				any replacement part for a vehicle, implement, or auxiliary attachment is
				eligible for the exemption or refund allowed under this rule.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 285 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-285.46 - Automotive Fluids

Current through Register Vol. 47, No. 3, July 24, 2024
The gross receipts from the sales of certain automotive
				  fluids are exempt from tax. To be considered exempt, the sale must possess the
				  following characteristics:
(1) the sale
				must be to a retailer who will install the automotive fluid in or apply the
				automotive fluid to a motor vehicle; and
(2) the installation or application must be
				done while the retailer is providing a taxable enumerated service (e.g.,
				automobile lubrication); or
(3) the
				automotive fluid must be installed in or applied to a motor vehicle which the
				retailer intends to sell and the sale of which will be subject to Iowa use tax.
Specific but nonexclusive examples of "automotive fluids" are
				  motor oil and other automobile lubricants, hydraulic, brake, and transmission
				  fluids, sealants, undercoatings, antifreeze, and gasoline additives.
This rule is intended to implement Iowa Code section
				  422.45(33).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 285 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-285.49 - Aircraft Sales, Rental, Component Parts, and Services Exemptions Prior To, On, and After July 1, 1999

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Prior to July 1, 1999, sales in Iowa of
				aircraft subject to registration were subject to sales tax. On and after July
				1, 1999, sales of aircraft in Iowa are subject to Iowa use tax rather than Iowa
				sales tax. See rule 701-31.6 (423). Also, on and
				after that date, the use tax imposed on sales of aircraft in Iowa is collected
				by the Iowa department of transportation at the time of the aircraft's
				registration. Sales of certain aircraft parts in Iowa, the performance of
				taxable services in Iowa on or in connection with the repair, remodeling, or
				maintenance of aircraft, and the rental of aircraft in Iowa remain subject to
				Iowa sales tax on and after July 1, 1999. See subrule 18.49(3).
(2) For the purposes of this subrule only, an
				"aircraft" is any contrivance known or hereafter invented which is designed for
				navigation of or flight in the air and is used in a scheduled interstate
				Federal Aviation Administration certified air carrier operation.
a.
Exempt aircraft sales.
As
				of July 1, 1988, and up to and including June 30, 1999, gross receipts from the
				sale of aircraft are exempt from tax.
b.
Exempt rental of
				aircraft.
Effective May 1, 1995, and retroactive to July 1, 1988, the
				taxable rental (see 701-26.74 (422,423)) of
				aircraft, as defined in the introductory paragraph of this subrule, is exempt
				from tax.
c.
Exempt sale or
				rental of aircraft parts.
Effective May 1, 1995, and retroactive to
				July 1, 1988, gross receipts from the sale or rental of tangible personal
				property permanently affixed to any aircraft as a component part of that
				aircraft are exempt from tax. The term "component parts" includes, but is not
				limited to, repair or replacement parts and materials.
d.
Exempt performance of
				services.
Effective May 1, 1995, and retroactive to July 1, 1988,
				gross receipts from the rendering, furnishing, or performing of services in
				connection with the repair, remodeling, or maintenance of aircraft (including
				aircraft engines and component materials or parts) are exempt from
				tax.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 285 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-285.50 - Property Used by a Lending Organization

Current through Register Vol. 47, No. 3, July 24, 2024
On and after July 1, 1988, the gross receipts from the sale
				  of tangible personal property to a nonprofit organization organized for the
				  purpose of lending the tangible personal property to the general public for use
				  by the public for nonprofit purposes are exempt from tax. The exemption
				  contained in this rule is applicable to tangible personal property only, and
				  not to taxable services. It is applicable to the sale of that property and not
				  to its rental to a nonprofit organization. Finally, the exemption is applicable
				  only to property purchased by a nonprofit organization for subsequent rental to
				  the general public. The exemption is not applicable to other property (e.g.,
				  office equipment) which the nonprofit organization might need for its ongoing
				  existence.
This rule is intended to implement Iowa Code section
				  422.45(36).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 285 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-285.51 - Sales to Nonprofit Legal Aid Organizations

Current through Register Vol. 47, No. 3, July 24, 2024
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 a nonprofit legal aid organization are exempt from tax.
This rule is intended to implement Iowa Code subsection
				  422.45(37).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 285 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-285.52 - Irrigation Equipment Used in Farming Operations

Current through Register Vol. 47, No. 3, July 24, 2024
On and after July 1, 1989, the gross receipts from the sale
				  or rental of irrigation equipment used in farming operations are exempt from
				  tax. The term "irrigation equipment" includes, but is not limited to, circle
				  irrigation systems and trickle irrigation systems. The term "farming
				  operations" has the same meaning as the term "agricultural production" set out
				  in 701-subrule 17.9(3), paragraph
"a,"
and as further
				  characterized in 18.44(2)
"a."
Effective May 18, 2001, and
				  retroactive to April 1, 1995, the gross receipts from the sale or rental of
				  irrigation equipment, as defined above, whether installed above or below ground
				  are exempt from tax as long as the equipment is sold or rented by a contractor
				  or farmer and the equipment is primarily used in agricultural
				  operations.
Contractors or farmers entitled to the exemption set forth in
				  the previous paragraph may apply for a refund of taxes, interest or penalties
				  paid on the sale or rental of qualifying irrigation equipment for transactions
				  that occurred between April 1, 1995, and May 18, 2001. To be eligible for
				  refund, refund claims must be filed with the department prior to October 1,
				  2001. Refund claims are limited to $25,000 in the aggregate and will not be
				  allowed if not timely filed. If the amount of refund claims totals more than
				  $25,000 in the aggregate, the department will prorate the $25,000 among all
				  claimants in relation to the amounts of the claimants' valid claims.
This rule is intended to implement Iowa Code section
				  422.45 and 2001 Iowa Acts, House
				  File 723.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 285 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-285.53 - Sales to Persons Engaged in the Consumer Rental Purchase Business

Current through Register Vol. 47, No. 3, July 24, 2024
On and after July 1, 1989, the gross receipts from the sale
				  of tangible personal property, except vehicles subject to registration, to
				  persons regularly engaged in the consumer purchase business are exempt from tax
				  if the property (1) is sold for the purpose of utilization in a transaction
				  involving a "consumer rental purchase agreement" as defined in Iowa Code
				  subsection 537.3604(8), and (2)
				   the gross receipts from the consumer rental
				  of the property are subject to Iowa sales or use tax.
If property exempt under this rule is made use of for any
				  purpose other than a consumer rental purchase, the person claiming the
				  exemption is liable for the tax that would have been due had the exemption not
				  existed. The tax shall be computed on the original purchase price to the person
				  claiming the exemption. The aggregate of the tax paid on the consumer rental
				  purchase of the property, not exceeding the amount of sales or use tax owed,
				  shall be credited against the tax.
This rule is intended to implement Iowa Code section
				  422.45(18).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 285 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-285.54 - Sales of Advertising Material

Current through Register Vol. 47, No. 3, July 24, 2024
On and after July 1, 1990, gross receipts from the sales of
				  advertising material to any person in Iowa are exempt from tax if that person,
				  or any agent of that person, will, after the sale, send that advertising
				  material outside of Iowa and subsequent sole use of that material will be
				  outside this state.
For the purposes of this rule "advertising material" is
				  tangible personal property only, including paper. "Advertising material" is
				  limited to the following: brochures, catalogs, leaflets, fliers, order forms,
				  return envelopes, floppy discs, CD-ROMs, videotapes, and any similar items of
				  tangible personal property which will be used to promote sales of property or
				  services.
This rule is intended to implement Iowa Code section
				  422.45.