reglab/statecodes huggingface dataset:
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 284 - Exempt Sales › Rule 701-284.15 - 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 III - Sales, Use, and Excise Tax › Chapter 284 - Exempt Sales › Rule 701-284.16 - 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
				  423.4(4).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 284 - Exempt Sales › Rule 701-284.17 - 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
				  455C.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 284 - Exempt Sales › Rule 701-284.18 - 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 III - Sales, Use, and Excise Tax › Chapter 284 - Exempt Sales › Rule 701-284.19 - 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 III - Sales, Use, and Excise Tax › Chapter 284 - Exempt Sales › Rule 701-284.20 - 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 99B.5 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 III - Sales, Use, and Excise Tax › Chapter 284 - Exempt Sales › Rule 701-284.22 - 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 III - Sales, Use, and Excise Tax › Chapter 284 - Exempt Sales › Rule 701-284.23 - 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 III - Sales, Use, and Excise Tax › Chapter 284 - Exempt Sales › Rule 701-284.24 - 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, arboretums, 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 III - Sales, Use, and Excise Tax › Chapter 284 - Exempt Sales › Rule 701-284.25 - 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 III - Sales, Use, and Excise Tax › Chapter 284 - Exempt Sales › Rule 701-284.26 - 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 III - Sales, Use, and Excise Tax › Chapter 284 - Exempt Sales › Rule 701-284.27 - 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 480.3 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 III - Sales, Use, and Excise Tax › Chapter 284 - Exempt Sales › Rule 701-284.28 - 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 III - Sales, Use, and Excise Tax › Chapter 284 - Exempt Sales › Rule 701-284.29 - 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 423.2.
"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
				  123.187 as enacted by 1996 Iowa
				  Acts, chapter 1101.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 284 - Exempt Sales › Rule 701-284.30 - 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 III - Sales, Use, and Excise Tax › Chapter 284 - Exempt Sales › Rule 701-284.31 - 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 428.24,
				  428.26, and
				  428.28, 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 sunk into the
				  earth to reach a water supply; a shaft or hole sunk 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
				  701-17.3 (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 III - Sales, Use, and Excise Tax › Chapter 284 - Exempt Sales › Rule 701-284.32 - 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 III - Sales, Use, and Excise Tax › Chapter 284 - Exempt Sales › Rule 701-284.33 - 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
				  701-19.3 (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
				  701-19.13. (422,423)
This rule is intended to implement Iowa Code section
				  422.45 as amended by 1999 Iowa
				  Acts, chapter 59.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 284 - Exempt Sales › Rule 701-284.34 - Sales to Hospices

Current through Register Vol. 47, No. 3, July 24, 2024
As of July 1, 1999, gross receipts from the sale or rental of
				  tangible personal property to or the performance of services for any
				  freestanding nonprofit hospice facility which operates a hospice program are
				  exempt from tax if the property or service is purchased for use in the
				  hospice's program. A "hospice program" is any program operated by a public
				  agency, a private organization, or a subdivision of either, which is primarily
				  engaged in providing care to terminally ill individuals. A "freestanding
				  hospice facility" is any hospice program housed in a building which is
				  dedicated only to the hospice program and which is not attached to any other
				  building or complex of buildings. An individual is "terminally ill" if that
				  individual has a medical prognosis that the individual's life expectancy is six
				  months or less if the illness runs its normal course.
This rule is intended to implement Iowa Code section
				  422.45 as amended by 1999 Iowa
				  Acts, chapter 62.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 284 - Exempt Sales › Rule 701-284.35 - Sales of Livestock Ear Tags

Current through Register Vol. 47, No. 3, July 24, 2024
On and after July 1, 2000, sales of livestock ear tags by a
				  nonprofit organization, the income of which is exempt from federal taxation
				  under Section 501(c)(6) of the Internal Revenue Code, are exempt from tax if
				  the proceeds of those sales are used in bovine research programs selected or
				  approved by the nonprofit organization. For the purposes of this rule, the
				  definition of "livestock" is found in subrule 17.9(1).
This rule is intended to implement Iowa Code Supplement
				  section 422.45 as amended by 2000 Iowa
				  Acts, chapter 1169.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 284 - Exempt Sales › Rule 701-284.39 - Art Centers

Current through Register Vol. 47, No. 3, July 24, 2024
Effective July 1, 2001, the gross receipts from sales of
				  goods, wares, or merchandise or from services performed, rendered, or furnished
				  to a private nonprofit art center located in Iowa which are used in the
				  operation of the art center are exempt from sales and use tax.
To be eligible for this exemption all of the following
				  criteria must apply:
(1) The
				organization seeking to claim this exemption must be a private nonprofit art
				center. For the purpose of this rule, an "art center" is defined as a structure
				that displays aesthetic objects which are the product of the conscious use of
				skill and creative imagination. The structure housing the art must be open to
				the public with regular hours and with staff available to answer visitors'
				questions. "Open to the public on a regular basis" means the facility is open
				for visitors periodically or at fixed intervals.
(2) The art center must be located in
				Iowa.
(3) Purchases of tangible
				personal property or services must be for the operation of the art center.
This rule is intended to implement 2001 Iowa Acts, House File
				  736, section 4.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 284 - Exempt Sales › Rule 701-284.40 - Community Action Agencies

Current through Register Vol. 47, No. 3, July 24, 2024
Effective July 1, 2002, the gross receipts from sales of
				  tangible personal property and enumerated services performed for, furnished or
				  rendered to a community action agency and used for the purposes of a community
				  action agency, as defined in Iowa Code section
				  216A.93, are exempt from
				  tax.
This rule is intended to implement Iowa Code section
				  422.45 as amended by 2002 Iowa
				  Acts, House File 2622, section 9.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 284 - Exempt Sales › Rule 701-284.41 - Legislative Service Bureau

Current through Register Vol. 47, No. 3, July 24, 2024
Effective April 22, 2002, sales by the legislative service
				  bureau and its legislative information office of mementos and other items
				  relating to Iowa history, historical sites, the general assembly, and the state
				  capitol are exempt from tax. The exemption applies to a sale only if it occurs
				  on the premises of property controlled by the legislative council, at the state
				  capitol, or on other state property.
This rule is intended to implement Iowa Code section
				  422.45 and 2002 Iowa Acts, House
				  File 2585, section 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 701-285.1 - Tangible Personal Property Purchased From the United States Government

Current through Register Vol. 47, No. 3, July 24, 2024
Tangible personal property purchased from the United States
				  government or any of the governmental agencies shall be exempt from sales tax,
				  but such purchases shall be taxable to the purchaser under the provisions of
				  the use tax law. Persons making purchases from the United States government,
				  unless exempt from the provisions of Iowa Code section
				  422.44, shall report and pay use
				  tax at the current rate on the purchase price of such purchases.
This rule is intended to implement Iowa Code sections
				  422.44 and
				  423.3.
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 701-285.1 - Auctioneers as Agents

Current through Register Vol. 47, No. 3, July 24, 2024
(1) An auctioneer in making a sale, whether
				of tangible personal property, specified digital products, or realty, is by
				virtue of this employment making the sale as the agent of the
				principal.
(2) Where an auctioneer
				is conducting a sale and the principal meets the requirement of the casual sale
				exemption found in Iowa Code section
				423.3(39), the
				sales price from the sale is exempt from sales tax.
This rule is intended to implement Iowa Code sections
				  423.2 and
				  423.3(39).
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 701-285.2 - Sales of Butane, Propane and Other Like Gases in Cylinder Drums, Etc

Current through Register Vol. 47, No. 3, July 24, 2024
Sales of butane, propane and other like gases in cylinder
				  drums and other similar containers purchased for cooking, heating and other
				  purposes shall be taxable.
When gas of this type is sold and motor vehicle fuel tax is
				  collected by the seller, tax shall not be due. If Iowa motor vehicle fuel tax
				  is not collected by the seller at the time of the sale, tax shall be collected
				  and remitted to the department, unless the sale is specifically exempt.
If tax is not collected by the seller at the time of sale,
				  any tax due shall be collected by the department at the time the user of the
				  product makes application for a refund of the motor vehicle fuel tax.
The gross receipts from the rental of cylinders, drums and
				  other similar containers by the distributor or dealer of the gas shall be
				  subject to tax when the title remains with the dealer. Gas converter equipment
				  which might be sold to an ultimate consumer shall be subject to tax.
This rule is intended to implement Iowa Code sections
				  422.42,
				  422.43,
				  422.45(11),
				  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 701-285.2 - Florists

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
				Florists are engaged in the business of selling tangible personal property and
				specified digital products at retail. The sales price from the sale of flowers,
				wreaths, bouquets, potted plants and other items of tangible personal property
				and specified digital products are subject to sales tax.
(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, based on
				sales price from the total amount collected from the customer, except the cost
				of a telegram if separately stated on a bill or invoice.
b. In cases where an Iowa florist receives an
				order pursuant to which the Iowa florist gives telephonic instructions to a
				second florist located outside Iowa for delivery to a point outside Iowa, Iowa
				sales tax is not due.
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 Iowa sales tax with respect to the
				transaction.
This rule is intended to implement Iowa Code section
				  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 701-285.3 - Chemical Compounds Used to Treat Water

Current through Register Vol. 47, No. 3, July 24, 2024
Chemical compounds placed in water which is ultimately sold
				  at retail should be purchased exempt from the tax. The chemical compounds
				  become an integral part of property sold at retail. Chemical compounds placed
				  in water which is directly used in processing are exempt from the tax, even if
				  the water is consumed by the processor and not sold at retail.
Chemical compounds which are used to treat water that is not
				  sold at retail or which are not used directly in processing shall be subject to
				  tax. An example would be chlorine or other chemicals used to treat water for a
				  swimming pool.
Special boiler compounds used by processors when live steam
				  is injected into the mash or substance, whereby the steam liquefies and becomes
				  an integral part of the product intended to be sold at retail and does become a
				  part of the finished product, 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 701-285.3 - Student Fraternities and Sororities

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Student fraternities and sororities are
				not considered to be engaged in the business of selling tangible personal
				property at retail 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
				701-220.5 (423).
(2) Student fraternities or sororities
				engaged in the business of selling meals or other tangible personal property to
				persons other than members for which separate charges are made are making
				taxable sales.
(3) Sales by other
				food preparers. When student fraternities or sororities do not provide their
				own meals but meals instead are provided to members by caterers,
				concessionaires or other persons, such caterers, concessionaires or other
				persons shall be liable for the collection and remittance of sales tax on the
				sales price from meals furnished.
This rule is intended to implement Iowa Code sections
				  423.1,
				  423.1(39),
				  423.2, and
				  423.5.
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 701-285.4 - Mortgages and Trustees

Current through Register Vol. 47, No. 3, July 24, 2024
Pursuant to the provisions of a chattel mortgage, the
				  receipts from the sale of tangible personal property at a public auction shall
				  be taxable even if the sale is made by virtue of a court decree of foreclosure
				  by an officer appointed by the court for that purpose.
The tax applies to inventory and noninventory goods provided
				  the owner is in the business of making retail sales of tangible personal
				  property or taxable services. In Re
Hubs Repair Shop, Inc.
28
				  B.R. 858 (Bkrtcy. 1983).
This rule is intended to implement Iowa Code sections
				  422.42,
				  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 701-285.4 - Morticians or Funeral Directors

Current through Register Vol. 47, No. 3, July 24, 2024
A mortician or funeral director is engaged in the business of
				  selling tangible personal property, specified digital products, and funeral
				  services. Examples of the tangible personal property sold by a funeral director
				  include but are not limited to caskets, other burial containers, flowers, and
				  burial clothing. "Funeral services" includes but is not limited to cremation,
				  transportation by hearse and embalming. Tax is due only on the sales price from
				  the sale of tangible personal property, specified digital products, and taxable
				  services, and not on the sales price from the sale of nontaxable
				  services.
If a mortician or funeral director separately itemizes
				  charges for tangible personal property, specified digital products, taxable
				  services and nontaxable services, tax is due only upon the sales price from the
				  sales of tangible personal property and taxable services.
The mortician or funeral director is considered to be
				  purchasing caskets, outer burial containers, burial clothing, and other items
				  sold to customers for resale, and may purchase these items from suppliers
				  without payment of sales tax.
For purposes of this rule, the terms of morticians or funeral
				  directors shall also include cemeteries, cemetery associations and anyone
				  engaged in activities similar to those discussed in the rule.
This rule is intended to implement Iowa Code section
				  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 701-285.5 - Sales to Federal, State, County, Municipal, or Tribal Government or the Government's Agencies or Instrumentalities

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Sales to government or agencies
				or instrumentalities.
a. A sale to a
				government or an agency or instrumentality of government occurs only if a
				government or an agency or instrumentality of government pursuant to a contract
				for sale, takes title or ownership to tangible personal property or a specified
				digital product, or receives an enumerated taxable service as a buyer from a
				seller.
b. No sale to a government
				or an agency or instrumentality of government occurs if a government or an
				agency or instrumentality of government pays some portion of the sales price of
				the sale of tangible personal property, a specified digital product, or a
				taxable service but title to and ownership of the tangible personal property or
				specified digital product are transferred to or a taxable service is received
				by another person as a result of the sale.
c. Independent contractors who deal with
				agencies, instrumentalities, or other entities of government do not, by virtue
				of their contracting with those entities, acquire immunity or exemption from
				taxation for themselves. Sales to these contractors are still subject to tax.
				See rule 701-19.12 (422,423) for rules
				concerning construction contracts with designated exempt
				entities.
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 701-285.5 - Physicians, Dentists, Surgeons, Ophthalmologists, Optometrists, and Opticians

Current through Register Vol. 47, No. 3, July 24, 2024
Physicians, dentists, surgeons, ophthalmologists,
				  optometrists, and opticians are not liable for sales tax on services rendered,
				  including but not limited to examinations, consultations, diagnosis, and
				  surgery.
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 of prescription drugs would not be subject to sales tax if purchased
				  for use in the practice of the physician, dentist, surgeon, ophthalmologist,
				  optometrist, or optician. Sales of tangible personal property and specified
				  digital products 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 sales 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 and specified digital
				  products 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 and specified digital
				  products to ophthalmologists, 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 equipment that is utilized directly in the care of an
				  illness, injury or disease, which would be exempt if purchased directly by the
				  patient, is not subject to tax.
This rule is intended to implement Iowa Code section
				  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 701-285.6 - Warranties and Maintenance Contracts

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Mandatory warranties. A warranty is a
				mandatory warranty when the buyer, as a condition of the sale, is required to
				purchase the warranty from the seller. When the sale of tangible personal
				property, specified digital products, or services includes the furnishing or
				replacement of parts or materials that are pursuant to the guaranty provisions
				of the sales contract, a mandatory warranty exists. If the property subject to
				the warranty is sold at retail, and the measure of the tax includes any amount
				charged for the guaranty or warranty, whether or not such amount is purported
				to be separately stated from the purchase price, the sale of replacement parts
				and materials to the seller furnishing them thereunder is a sale for resale and
				not taxable. Labor performed under a mandatory warranty that is in connection
				with an enumerated taxable service is also exempt from tax.
(2) Optional warranties. A warranty is an
				optional warranty when the buyer is not required to purchase the warranty from
				the seller.
a. The sale of optional service or
				warranty contracts that provide for the furnishing of labor and materials and
				require the furnishing of any taxable service enumerated under Iowa Code
				section 423.2 is considered a sale of tangible personal property the sales
				price of which is subject to tax at the time of sale except as described
				below.
b. The sale of a residential
				service contract regulated under Iowa Code chapter 523C is not the sale of
				tangible personal property, and the sales price from the sales of these service
				contracts is not subject to tax, and the sales price from taxable services
				performed for the providers of residential service contracts are now subject to
				tax. "Residential service contract" is defined in Iowa Code section
				523C.1(8).
c. If an optional service or warranty
				contract is a computer software maintenance or support service contract and the
				contract provides for the furnishing of technical support services only, then
				no tax is imposed on the furnishing of those services. If a computer software
				maintenance or support service contract provides for the performance of
				nontaxable services and the taxable transfer of tangible personal property, and
				no separate fee is stated for either the performance of the service or the
				transfer of the property, then sales tax shall be imposed on the sales price
				from the sale of the contract.
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 701-285.7 - Containers, Including Packing Cases, Shipping Cases, Wrapping Material and Similar Items

Current through Register Vol. 47, No. 3, July 24, 2024
The gross receipts from the sale of containers, labels,
				  cartons, pallets, packing cases, wrapping paper, twine, bags, bottles, shipping
				  cases, garment hangers, and other similar articles and receptacles sold to
				  retailers or manufacturers which are purchased for the purpose of packaging or
				  facilitating the transportation of tangible personal property which is sold
				  either at retail or for resale shall be exempt from the tax.
For the purpose of this rule, producers, wholesalers and
				  jobbers are considered retailers or manufacturers.
(1)
Sales to other than retailers or
				manufacturers.
a. Containers and all
				other specified items delivered with tangible personal property which are sold
				to a final buyer or ultimate consumer shall be exempt from the tax when no
				separate charge is made for the container. This group includes such items as
				boxes, cartons, pallets, paper bags, bottles, shipping cases, wrapping paper
				and twine. If a separate charge is made for the container, the sale of the
				container is subject to the tax. The sale of wrapping paper, paper bags and
				like items are subject to the tax when sold at retail.
EXAMPLE: A meat locker purchases materials such as wrapping
				  paper and tape which it uses to wrap meat for customers to whom meat is sold.
				  The wrapping paper and tape would be exempt from tax as being purchased as a
				  packaging material of tangible personal property sold at retail.
EXAMPLE: A meat locker purchases materials such as wrapping
				  paper and tape which it uses to wrap meat for customers who own the meat. The
				  meat locker only performs the service of processing the meat. The wrapping
				  paper and tape are subject to tax as they were not purchased for packaging or
				  for the facilitating of transportation of tangible personal property sold at
				  retail, but were used in the rendering of a service.
b. Packing paper, lining paper, paper used to
				line boxes and crates, and similar items shall be exempt from the tax if
				delivered with tangible personal property ultimately sold at retail when no
				separate charge is made for the paper.
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 701-285.7 - Casual Sales

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Casual sales by persons not retailers or by retailers outside the
				regular course of business.
a.
Exemptions.
Casual sales are exempt from Iowa sales and use
				taxes except for the casual sale of vehicles subject to registration, aircraft,
				and other vehicles listed in Iowa Code section
				423.3(39)
"b."
In order for a casual sale to qualify for exemption under
				this subrule, two conditions must be present:
(1) The sale of tangible personal property,
				specified digital products, or taxable services must be of a nonrecurring
				nature, and
(2) The seller, at the
				time of the sale, must not be engaged for profit in the business of selling
				tangible goods or services taxed under Iowa Code section
				423.2 or, if so engaged, the
				sale must be outside the regular course of the seller's business.
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 701-285.8 - Auctioneers

Current through Register Vol. 47, No. 3, July 24, 2024
(1) An
				auctioneer in making a sale, whether of tangible personal property or realty,
				is by virtue of this employment making the sale as the agent of the
				principal.
(2) Where an auctioneer
				is conducting a sale and the principal meets the requirement of the casual sale
				exemption found in Iowa Code section
				422.42(12), the
				gross receipts from the sale are exempt from the tax. See 1970 O.A.G.
				774.
(3) When an auctioneer is
				conducting a sale and the principal is in the business of making sales of
				tangible personal property or taxable services on a recurring basis, the gross
				receipts from the sale are taxable.
(4) Where an auctioneer is selling tangible
				personal property that the auctioneer owns, the sale of the tangible property
				owned by the auctioneer is taxable.
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 701-285.8 - Taxation of Native Americans

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Definitions.
"Native Americans"
means all persons who are
				  descendants of and who are members of any recognized tribe.
"Settlement"
means all lands recognized as a
				  tribal government 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 to Native Americans who are
				members of the tribe located on that settlement, where delivery occurs on the
				settlement, are exempt from tax. Retail sales of tangible personal property
				made on a recognized settlement to Native Americans where delivery occurs off
				the settlement are subject to tax. Retail sales of tangible personal property
				made to non-Native Americans on a recognized settlement are subject to tax
				regardless of where the delivery occurs. Sales made to non-Native Americans are
				taxable even though the seller may be a member of a recognized
				settlement.
(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 Native Americans who are members of the tribe located
				on the recognized settlement where delivery of the service occurs are exempt
				from tax. Sales of enumerated taxable services or sales made by municipal
				corporations furnishing gas, electricity, water, heat, or communication
				services to Native Americans where delivery of the services occurs off a
				recognized settlement are subject to tax.
(4)
Off-settlement
				purchases.
Purchases made by Native Americans off a recognized
				settlement are subject to tax if delivery occurs off the settlement. Purchases
				made by Native Americans off a recognized settlement are not subject to tax if
				delivery is made on the settlement to Native Americans who are members of the
				tribe located on that settlement.
This rule is intended to implement Iowa Code section
				  423.3.
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 - Sales by Farmers

Current through Register Vol. 47, No. 3, July 24, 2024
The sale of grain, livestock or any other farm or garden
				  product by the producer thereof ordinarily constitutes a sale for resale,
				  processing or human consumption and shall not be subject to tax.
Farmers selling tangible personal property not otherwise
				  exempt to ultimate consumers or users shall hold a permit and collect and remit
				  sales tax on the gross receipts from their sales.