reglab/statecodes huggingface dataset:
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 17 - Exempt Sales › Rule 701-17.34 - 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 I - Administration › Chapter 17 - Exempt Sales › Rule 701-17.35 - 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 I - Administration › Chapter 17 - Exempt Sales › Rule 701-17.39 - 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 I - Administration › Chapter 17 - Exempt Sales › Rule 701-17.40 - 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
				  216A93.,
				  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 I - Administration › Chapter 17 - Exempt Sales › Rule 701-17.41 - 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 I - Administration › Chapter 18 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-18.1 - 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
				  4233..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 18 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-18.2 - 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),
				  4231. and
				  4232..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 18 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-18.3 - 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,
				  4231., and
				  4232..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 18 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-18.4 - 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,
				  4231. and
				  4232..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 18 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-18.5 - 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 I - Administration › Chapter 18 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-18.7 - 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 I - Administration › Chapter 18 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-18.8 - 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 I - Administration › Chapter 18 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-18.9 - 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.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 18 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-18.10 - 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.
d. Rescinded lAB 2/28/96, effective
				4/3/96.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 18 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-18.11 - 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
				  701-2662. (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
				  701-201.
				  (422,423).
This rule is intended to implement Iowa Code sections 422.42,
				  422.45(12) and
				  4231..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 18 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-18.12 - 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
				  701-179.
				  (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,
				  4231. and
				  4232..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 18 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-18.13 - 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 I - Administration › Chapter 18 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-18.14 - 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,
				  4231. and
				  4232..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 18 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-18.15 - 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
				  701-201.
				  (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,
				  4231. and
				  4232..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 18 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-18.16 - 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,
				  4231. and
				  423.2.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 18 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-18.17 - 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),
				  4231. and
				  4232..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 18 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-18.18 - 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
				  701-201.
				  (422,423).
This rule is intended to implement Iowa Code sections
				  422.42(3), 422.43, 422.45(12),
				  4232. and
				  4234..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 18 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-18.19 - 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,
				  4231. and
				  423.2.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 18 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-18.21 - 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 both tangible personal property and funeral services. Examples of the
				  former are caskets, other burial containers, flowers, and grave clothing.
				  Examples of the latter are cremation, transportation by hearse and embalming.
				  Tax is due only upon gross receipts from the sale of tangible personal property
				  and taxable services, and not upon gross receipts from the sale of nontaxable
				  services.
If a mortician or funeral director separately itemizes
				  charges for tangible personal property, taxable services and nontaxable
				  services, as required by the rules of the Federal Trade commission, or Iowa
				  Code section 523A.8(1)
"b,"
whichever is applicable, tax is due
				  only upon the gross receipts from the sales of tangible personal property and
				  taxable services. If contrary to the rules or the statute, or if the applicable
				  rules are rescinded or the statute repealed, and the mortician or funeral
				  director charges a lump sum to a customer covering the entire cost of the
				  funeral without dividing the charges for sales of tangible personal property
				  and taxable and nontaxable services, the mortician or funeral director shall
				  report the full amount of the funeral bill less any cash advanced by the
				  mortician or funeral director, with tax due on 50 percent of the
				  difference.
Kistner v. Iowa State Board of Assessment and Review,
				  224
Iowa 404, 280 N.W. 587 (1938). Cash advance items may include, but
				  are not limited to, the following: cemetery or crematory services, pallbearers,
				  public transportation, clergy honoraria, flowers, musicians, singers, nurses,
				  obituary notices, gratuities, and death certificates.
The mortician or funeral director is considered to be
				  purchasing caskets, outer burial containers, and grave clothing for resale, and
				  may purchase these items from suppliers without payment of tax. The mortician
				  or director should present the supplier with a certificate of resale as set out
				  in rule
				  701-153.
				  (422,423). A mortician or director is considered to be the user or consumer of
				  office furniture and equipment, funeral home furnishings, advertising
				  calendars, booklets, motor vehicles and accessories, embalming equipment,
				  instruments, fluid and other chemicals used in embalming, cosmetics, and grave
				  equipment, stretchers, baskets, and other items if title or possession does not
				  pass to the customer
Kistner,
supra.
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 sections
				  422.42(3), 422.43,
				  4231. and
				  4232..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 18 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-18.22 - 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),
				  4232. and
				  4234(4)..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 18 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-18.23 - 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
				  701-1848.
				  (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 I - Administration › Chapter 18 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-18.24 - 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,
413 111. 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,
415 111. 202, 112 N.E.2d 706 (1953);
Fefferman v. Marohn,
408
				  111. 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
				  701-171.
				  (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 I - Administration › Chapter 18 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-18.26 - 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
				  111. 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 I - Administration › Chapter 18 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-18.30 - 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
				arecognized 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 I - Administration › Chapter 18 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-18.34 - 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 I - Administration › Chapter 18 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-18.35 - 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
				  4232..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 18 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-18.38 - 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 I - Administration › Chapter 18 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-18.40 - 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 I - Administration › Chapter 18 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-18.41 - 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.
(2)
				Because of the difficulty of administering this exemption, purchasers of
				envelopes may petition to the department for permission to use a formula to
				represent to the seller the portion of taxable and exempt gross receipts from
				envelope purchases.
This rule is intended to implement Iowa Code subsection
				  422.45(9).