reglab/statecodes huggingface dataset:
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 215 - Exemptions Primarily Benefiting Manufacturers and Other Persons Engaged in Processing › Rule 701-215.3 - Services Used in Processing

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
				Electricity, steam, or any taxable service is used in processing only when used
				in any operation that subjects raw material to some special treatment that
				changes, by artificial or natural means, the form, context, or condition of the
				raw material and results in a change of the raw material into marketable
				tangible personal property intended to be sold ultimately at retail. Rule
				701-215.2 (423) contains
				information about the expanded definition of "processing" allowed to
				manufacturers of food or food ingredients using taxable services. The following
				are nonexclusive examples of what would and would not be considered
				electricity, steam, or taxable services used in processing under this rule:
a. The sales price from the sale of
				electricity or steam consumed as power or used in the actual processing of
				tangible personal property intended to be sold ultimately at retail would be
				exempt from tax. The sales price of electricity or steam consumed for the
				purpose of lighting, ventilating, or heating manufacturing plants; warehouses;
				or offices is subject to tax. Also subject to tax is the sales price of any
				taxable services used to repair or replace defective or broken-down machinery
				and equipment.
b. The sales price
				from electricity used in the freezing of tangible personal property, ultimately
				to be sold at retail, to make the property marketable would be exempt from
				sales tax.
c. Electricity used
				merely in the refrigeration or the holding of tangible personal property for
				the purpose of preventing spoilage or to preserve the property in its present
				state would not be "used in processing" and, therefore, its sales price would
				be subject to tax.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 215 - Exemptions Primarily Benefiting Manufacturers and Other Persons Engaged in Processing › Rule 701-215.4 - Chemicals, Solvents, Sorbents, or Reagents Used in Processing

Current through Register Vol. 47, No. 3, July 24, 2024
Chemicals, solvents, sorbents, and reagents directly used and
				  consumed, dissipated, or depleted in processing tangible personal property
				  intended to be sold ultimately at retail shall be exempt from sales and use
				  tax. For the purpose of this processing exemption rule, free newspapers and
				  shoppers' guides are considered to be retail sales. See 701-Chapter 211 for
				  definition of the words "chemicals," "solvents," "sorbents," and
				  "reagents."
For the purpose of this rule, a catalyst is considered to be
				  a chemical, solvent, sorbent, or reagent. A catalyst is a substance which
				  promotes or initiates a chemical reaction and, as such, is exempt from tax if
				  consumed, dissipated, or depleted during processing of tangible personal
				  property intended to be ultimately sold at retail.
To qualify for this exemption, all of the following
				  conditions must be met:
1. The item
				must be a chemical, solvent, sorbent, or reagent.
2. The chemical, solvent, sorbent, or reagent
				must be directly used and consumed, dissipated, or depleted during processing
				as defined in referenced rule
				701-18.29 (422,423).
3. The processing must be performed on
				tangible personal property intended to be sold ultimately at retail.
4. The chemical, solvent, sorbent, or reagent
				need not become an integral or component part of the processed tangible
				personal property.
This rule is intended to implement Iowa Code section
				  423.3(51).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 215 - Exemptions Primarily Benefiting Manufacturers and Other Persons Engaged in Processing › Rule 701-215.4 - Chemicals, Solvents, Sorbents, or Reagents Used in Processing

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Chemicals,
				solvents, sorbents, and reagents directly used and consumed, dissipated, or
				depleted in processing tangible personal property intended to be sold
				ultimately at retail are exempt from sales and use tax. For the purpose of this
				processing exemption rule, free newspapers and shoppers' guides are considered
				to be retail sales. The terms "chemical," "solvent," "sorbent," and "reagent"
				are defined in rule 701-200.1 (423).
(2) For the purpose of this rule, a catalyst
				is considered to be a chemical, solvent, sorbent, or reagent. A catalyst is a
				substance which promotes or initiates a chemical reaction and, as such, is
				exempt from tax if consumed, dissipated, or depleted during processing of
				tangible personal property intended to be ultimately sold at retail.
(3) To qualify for this exemption, all of the
				following conditions must be met:
a. The item
				must be a chemical, solvent, sorbent, or reagent.
b. The chemical, solvent, sorbent, or reagent
				must be directly used and consumed, dissipated, or depleted during
				processing.
c. The processing must
				be performed on tangible personal property intended to be sold ultimately at
				retail.
d. The chemical, solvent,
				sorbent, or reagent need not become an integral or component part of the
				processed tangible personal property.
This rule is intended to implement Iowa Code section
				  423.3(51).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 215 - Exemptions Primarily Benefiting Manufacturers and Other Persons Engaged in Processing › Rule 701-215.5 - Exempt Sales of Gases Used in the Manufacturing Process

Current through Register Vol. 47, No. 3, July 24, 2024
Sales of argon and other similar gases to be used in the
				  manufacturing process are exempt from tax. For the purposes of this rule, only
				  inert gases are gases that are similar to argon. An "inert gas" is any gas that
				  is normally chemically inactive. It will not support combustion and cannot be
				  used as either a fuel or as an oxidizer. Argon, helium, neon, krypton, radon,
				  and xenon are inert gases. Oxygen, hydrogen, and methane are nonexclusive
				  examples of gases that are not inert. These sales are exempt only if the gas is
				  purchased by a "manufacturer," for use in "processing," as those terms are
				  defined in subrules 230.15(3) and 230.15(4).
This rule is intended to implement Iowa Code section
				  423.3(52).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 215 - Exemptions Primarily Benefiting Manufacturers and Other Persons Engaged in Processing › Rule 701-215.5 - Exempt Sales of Gases Used in the Manufacturing Process

Current through Register Vol. 47, No. 3, July 24, 2024
Sales of argon and other similar gases to be used in the
				  manufacturing process are exempt from tax. For the purposes of this rule, only
				  inert gases are gases that are similar to argon. An "inert gas" is any gas that
				  is normally chemically inactive. It will not support combustion and cannot be
				  used as either a fuel or as an oxidizer. Argon, helium, neon, krypton, radon,
				  and xenon are inert gases. Oxygen, hydrogen, and methane are nonexclusive
				  examples of gases that are not inert. These sales are exempt only if the gas is
				  purchased by a "manufacturer," for use in "processing," as those terms are
				  defined in Iowa Code section
				  423.3(47)
"d."
This rule is intended to implement Iowa Code section
				  423.3(52).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 215 - Exemptions Primarily Benefiting Manufacturers and Other Persons Engaged in Processing › Rule 701-215.6 - Sale of Electricity to Water Companies

Current through Register Vol. 47, No. 3, July 24, 2024
The sales price 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.; or 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.
This rule is intended to implement Iowa Code section
				  423.3(53).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 215 - Exemptions Primarily Benefiting Manufacturers and Other Persons Engaged in Processing › Rule 701-215.6 - Sale of Electricity to Water Companies

Current through Register Vol. 47, No. 3, July 24, 2024
The sales price from the sale of electricity to water
				  companies assessed for property tax pursuant to Iowa Code sections
				  428.24,
				  428.26, and
				  428.28, that 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 water.
This rule is intended to implement Iowa Code section
				  423.3(53).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 215 - Exemptions Primarily Benefiting Manufacturers and Other Persons Engaged in Processing › Rule 701-215.7 - Wind Energy Conversion Property

Current through Register Vol. 47, No. 3, July 24, 2024
The sales price from the sale of property used to convert
				  wind energy to electrical energy or the sales price from the sale of materials
				  used to manufacture, install, or construct property used to convert wind energy
				  to electrical energy is exempt from tax.
For the purposes of this rule, "property used to convert wind
				  energy to electrical energy" means any device which converts wind energy to
				  usable electrical energy including, but not limited to, wind chargers,
				  windmills, wind turbines, pad mount transformers, substations, power lines, and
				  tower equipment.
This rule is intended to implement Iowa Code section
				  423.3(54).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 215 - Exemptions Primarily Benefiting Manufacturers and Other Persons Engaged in Processing › Rule 701-215.8 - Exempt Sales or Rentals of Core Making and Mold Making Equipment, and Sand Handling Equipment

Current through Register Vol. 47, No. 3, July 24, 2024
This rule is applicable to the period beginning on or after
				  July 1, 2004.
(1)
Exempt sales
				and rentals of machinery and equipment.
The sales price from sales or
				rentals of core making, mold making, and sand handling machinery and equipment
				directly and primarily used by a foundry in the mold making process is exempt
				from tax. For the purposes of this rule, a "foundry" is an establishment where
				metal, but not plastic, is melted and poured into molds. A nonexclusive list of
				equipment which may be exempt under this rule includes sand storage tanks,
				conveyers, patterns, mallor controllers, and sand mixers. A nonexclusive list
				of items which would not be exempted by this rule includes sand and other
				materials (as opposed to equipment) used to build molds or cores, and supplies.
				Services used in the mold making process are not exempted from tax by this
				rule. For the purposes of this rule, core making, mold making, and sand
				handling equipment also include replacement parts necessary for the operation
				of the equipment which is used directly and primarily by a foundry in the mold
				making process. See subrule 230.14(2) for definitions of "directly used,"
				"equipment," and "machinery," and see Iowa Code section
				423.3(47)
"d"
for definitions of "replacement part" and
				"supplies."
(2)
Exempt
				sales of fuel and electricity.
The sales price from sales of fuel used
				in creating heat, power, or steam for, or used for generating electric current
				for, or electric current sold for use in machinery or equipment the sale or
				rental of which is exempt under subrule 230.8(1) is exempt from tax.
(3)
Exempt design and installation
				services.
The sales price from furnishing design and installation
				services, including electrical and electronic installation, of machinery and
				equipment the sale or rental of which is exempt under subrule 215.8(1) is
				exempt from tax. Rule
				701-219.13
				(423) contains characterizations of the words "installation" and "electronic
				installation."
This rule is intended to implement Iowa Code section
				  423.3(82).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 215 - Exemptions Primarily Benefiting Manufacturers and Other Persons Engaged in Processing › Rule 701-215.8 - Exempt Sales or Rentals of Core-making and Mold-making Equipment, and Sandhandling Equipment

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Exempt
				sales and rentals of machinery and equipment.
The sales price from
				sales or rentals of core-making, mold-making, and sand-handling machinery and
				equipment, including replacement parts, directly and primarily used by a
				foundry in the mold-making process is exempt from tax. For the purposes of this
				rule, a "foundry" is an establishment where metal, but not plastic, is melted
				and poured into molds. A nonexclusive list of equipment that may be exempt
				includes sand storage tanks, conveyors, patterns, mallor controllers, and sand
				mixers. A nonexclusive list of items that would not be exempt includes sand and
				other materials (as opposed to equipment) used to build molds or cores, and
				supplies. Services used in the mold-making process are not exempted from tax by
				this rule. Subrule 215.14(2) provides definitions of "directly used,"
				"equipment," and "machinery." Iowa Code section
				423.3(47)
"d"
provides definitions of "replacement part" and
				"supplies."
(2)
Exempt
				sales of fuel and electricity.
The sales price from sales of fuel used
				in creating heat, power, or steam for, or used for generating electric current
				for, or electric current sold for use in machinery or equipment the sale or
				rental of which is exempt under subrule 215.8(1) is exempt from tax.
(3)
Exempt design and installation
				services.
The sales price from furnishing design and installation
				services, including electrical and electronic installation, of machinery and
				equipment the sale or rental of which is exempt under subrule 215.8(1) is
				exempt from tax.
This rule is intended to implement Iowa Code section
				  423.3(82).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 215 - Exemptions Primarily Benefiting Manufacturers and Other Persons Engaged in Processing › Rule 701-215.9 - 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 also becomes
				  a part of the finished product, shall be exempt from tax.
This rule is intended to implement Iowa Code section
				  423.3(51).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 215 - Exemptions Primarily Benefiting Manufacturers and Other Persons Engaged in Processing › Rule 701-215.9 - Chemical Compounds Used to Treat Water

Current through Register Vol. 47, No. 3, July 24, 2024
Chemical compounds placed in water that 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
				  that 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 that are used to treat water that is not
				  sold at retail or that are not used directly in processing are 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 also becomes
				  a part of the finished product, is exempt from tax.
This rule is intended to implement Iowa Code section
				  423.3(51).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 215 - Exemptions Primarily Benefiting Manufacturers and Other Persons Engaged in Processing › Rule 701-215.10 - Exclusive Web Search Portal Business and Its Exemption

Current through Register Vol. 47, No. 3, July 24, 2024
Effective on or after July 1, 2007, a business that qualifies
				  as a web search portal business that has a physical location in Iowa and that
				  meets specific criteria may obtain an exemption from sales and use tax on
				  specific purchases that are used in the operation and maintenance of the web
				  search portal business. This exemption from sales and use tax also applies to
				  the affiliates of a qualifying web search portal business.
(1)
Definitions.
For the
				purpose of this exemption, the following definitions apply:
a. "Affiliate" means an entity that directly
				or indirectly controls, is controlled with or by, or is under common control
				with another entity.
b. "Control"
				means any of the following:
(1) In the case of
				a United States corporation, the ownership, directly or indirectly, of 50
				percent or more of the voting power to elect directors.
(2) In the case of a foreign corporation, if
				the voting power to elect the directors is less than 50 percent, the maximum
				amount allowed by applicable law.
(3) In the case of an entity other than a
				corporation, 50 percent or more ownership interest in the entity, or the power
				to direct the management of the entity.
c. "Web search portal business" means an
				entity among whose primary businesses is to provide a search portal to organize
				information; to access, search, and navigate the internet, including research
				and development to support capabilities to organize information; and to provide
				internet access, navigation, and search functionalities.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 215 - Exemptions Primarily Benefiting Manufacturers and Other Persons Engaged in Processing › Rule 701-215.11 - Web Search Portal Business and Its Exemption

Current through Register Vol. 47, No. 3, July 24, 2024
Effective on or after July 1, 2008, a business that qualifies
				  as a web search portal business that has a physical location in Iowa and that
				  meets specific criteria may obtain an exemption from sales and use tax on
				  specific purchases that are used in the operation and maintenance of the web
				  search portal business. This exemption from sales and use tax also applies to
				  the affiliates of a qualifying web search portal business.
(1)
Definitions.
For the
				purpose of this exemption, the following definitions apply:
"Affiliate"
means an entity that directly or
				  indirectly controls, is controlled with or by, or is under common control with
				  another entity.
"Control"
means any of the following:
1. In the case of a United States
				corporation, the ownership, directly or indirectly, of 50 percent or more of
				the voting power to elect directors.
2. In the case of a foreign corporation, if
				the voting power to elect the directors is less than 50 percent, the maximum
				amount allowed by applicable law.
3. In the case of an entity other than a
				corporation, 50 percent or more ownership interest in the entity, or the power
				to direct the management of the entity.
"Web search portal business"
means an entity
				  whose business among other businesses is to provide a search portal to organize
				  information; to access, search, and navigate the Internet, including research
				  and development to support capabilities to organize information; or to provide
				  Internet access, navigation, or search functionalities.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 215 - Exemptions Primarily Benefiting Manufacturers and Other Persons Engaged in Processing › Rule 701-215.12 - Large Data Center Business Exemption

Current through Register Vol. 47, No. 3, July 24, 2024
Effective on or after July 1, 2009, a data center business
				  that has a physical location in Iowa and that meets specific criteria may
				  obtain an exemption from sales and use tax on specific purchases that are used
				  in the operation and maintenance of the data center business.
(1)
Definitions.
For the
				purpose of this rule, the following definitions apply:
"Data center"
means a building rehabilitated
				  or constructed to house a group of networked server computers in one physical
				  location in order to centralize the storage, management, and dissemination of
				  data and information pertaining to a particular business, taxonomy, or body of
				  knowledge.
"Data center business"
means an entity whose
				  business, among other businesses, is to operate a data center.
(2)
Criteria to claim
				exemption.
The following govern whether a business qualifies for an
				exemption from sales and use tax on purchases made or leases executed by a data
				center business:
a.
Requirements.
All of the following requirements must be met by
				a data center business for the purpose of this exemption:
(1) The business, among other businesses, of
				the purchaser or lessee shall be as a provider of a data center.
(2) The data center business shall have a
				physical location in Iowa that is, in the aggregate, at least 5,000 square feet
				in size used for the operation and maintenance of the data center.
1. A data center facility includes, but is
				not limited to, the centralization, storage, management and dissemination of
				data and information.
2. The
				physical location shall include the mechanical and electrical systems,
				redundant or backup power supplies, redundant data communications connections,
				environmental controls, and fire suppression systems for the data center
				business. The data center business's physical location may also include a
				restricted access area employing advanced physical security measures such as
				video surveillance systems and card-based security or biometric security access
				systems.
(3) The data
				center business shall make a minimum investment in an Iowa physical location of
				$200 million within the first six years of operation in Iowa beginning with the
				date the data center business initiates site preparation activities. The
				minimum investment includes the initial investment, including land and
				subsequent acquisition of additional adjacent land and subsequent investment at
				the Iowa location.
(4) The data
				center business shall comply with the applicable sustainable design and
				construction standards in Iowa Administrative Code 661-Chapter 310 as
				established by the state building code commissioner pursuant to Iowa Code
				section
				103A.8B.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 215 - Exemptions Primarily Benefiting Manufacturers and Other Persons Engaged in Processing › Rule 701-215.12 - Large Data Center Business Exemption

Current through Register Vol. 47, No. 3, July 24, 2024
A data center business that has a physical location in Iowa
				  and that meets specific criteria may obtain an exemption from sales and use tax
				  on specific purchases that are used in the operation and maintenance of the
				  data center business.
(1)
Definitions.
For the purpose of this rule, "data center" and
				"data center business" mean the same as defined in Iowa Code section
				423.3(95)
"e."
(2)
Claiming the exemption.
Iowa Code section
				423.3(95)
"b"
provides the criteria to claim this exemption. If
				a business fails to meet the investment qualification found in Iowa Code
				section 423.3(95)
"d,"
the data center business loses the right
				to claim the exemption and the business is required to pay all sales or use
				taxes that would have been due on the purchase or rental of all purchases
				previously claimed exempt from sales and use tax, plus any and all applicable
				statutory penalty and interest due on the tax.
(3)
Exempt purchases.
Paragraphs 215.11(3)
"a"
through
"h"
are
				incorporated in full by this reference.
(4)
Limitation of exemption.
The purchase or lease of the items listed in subrule 215.12(3) is only exempt
				if the items being purchased or leased are being used in the operation or
				maintenance of the data center business. Such purchases or leases will not be
				exempt from sales or use tax if the item is to be used in the business for
				another purpose. For example:
a. The purchase
				of electricity for use in the office portion of the data center business
				facility would not be exempt.
b.
				The purchase of building materials that become real property would not be
				exempt. For example, the purchase of a dishwasher that will be built into a
				kitchen area in the break room for employees would not be exempt from tax.
				Although the purchase of a dishwasher is the purchase of tangible personal
				property, upon installation, the dishwasher becomes part of the building and
				realty and, therefore, is not exempt from Iowa sales and use tax.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 215 - Exemptions Primarily Benefiting Manufacturers and Other Persons Engaged in Processing › Rule 701-215.14 - Exemption for the Sale of Computers, Computer Peripherals, Machinery, Equipment, Replacement Parts, Supplies, and Materials Used to Construct or Self-construct Computers, Computer Peripherals, Machinery, Equipment, Replacement Parts, and Supplies Used for Certain Manufacturing Purposes

Current through Register Vol. 47, No. 3, July 24, 2024
Rules
				  701-230.14 (423) to
				  701-230.20 (423) exempt the
				  sales price of computers, computer peripherals, machinery, equipment,
				  replacement parts, supplies, and materials used to construct or self-construct
				  computers, computer peripherals, machinery, equipment, replacement parts, and
				  supplies when used in an exempt manufacturing purpose. Rule
				  701-230.21 (423) exempts the
				  purchase of fuel used in such computers, computer peripherals, machinery, and
				  equipment. Rule 701-230.22 (423) exempts the
				  service of designing or installing new industrial machinery and
				  equipment.
(1)
Generally.
The sales price of computers, computer peripherals,
				machinery, equipment, replacement parts, supplies, and materials used to
				construct or self-construct computers, computer peripherals, machinery,
				equipment, replacement parts, and supplies is exempt from sales and use tax if
				the property is any of the following:
a.
				Directly and primarily used in processing by a manufacturer (see rule
				701-230.15 (423)).
b. Directly and primarily used to maintain
				the integrity of the product or to maintain unique environmental conditions
				required for either the product or the computers, computer peripherals,
				machinery, and equipment used in processing by a manufacturer, including test
				equipment used to control quality and specifications of the product (see rule
				701-230.16(423)).
c. Directly and
				primarily used in research and development of new products or processes of
				processing (see rule 701-230.17 (423)).
d. Computers or computer peripherals used in
				processing or storage of data or information by an insurance company, financial
				institution, or commercial enterprise (see rule
				701-230.18 (423)).
e. Directly and primarily used in recycling
				or reprocessing of waste products (see rule
				701-230.19 (423)).
f. Pollution-control equipment used by a
				manufacturer, including but not limited to that required or certified by an
				agency of this state or of the United States government (see rule
				701-230.20 (423)).
g. Fuel used in creating heat, power, steam,
				or for generating electrical current, or from the sale of electricity, consumed
				by computers, computer peripherals, machinery, or equipment used in an exempt
				manner described in paragraph
"a," "b," "c," "e,"
or
"f"
(see rule 701-230.21(423)).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 215 - Exemptions Primarily Benefiting Manufacturers and Other Persons Engaged in Processing › Rule 701-215.14 - Exemption for the Sale of Computers, Computer Peripherals, Machinery, Equipment, Replacement Parts, Supplies, and Materials Used to Construct or Self-construct Computers, Computer Peripherals, Machinery, Equipment, Replacement Parts, and Supplies Used for Certain Manufacturing Purposes

Current through Register Vol. 47, No. 3, July 24, 2024
The sales price of computers, computer peripherals,
				  machinery, equipment, replacement parts, supplies, and materials used to
				  construct or self-construct computers, computer peripherals, machinery,
				  equipment, replacement parts, and supplies is exempt when used for an exempt
				  manufacturing purpose. Rule
				  701-215.21 (423) exempts the
				  purchase of fuel used in such computers, computer peripherals, machinery, and
				  equipment. Rule 701-215.22 (423) exempts the
				  service of designing or installing new industrial machinery and
				  equipment.
(1)
Generally.
The sales price of computers, computer peripherals,
				machinery, equipment, replacement parts, supplies, and materials used to
				construct or self-construct computers, computer peripherals, machinery,
				equipment, replacement parts, and supplies is exempt from sales and use tax if
				the property is any of the following:
a.
				Directly and primarily used in processing by a manufacturer (as described in
				rule 701-215.15 (423)).
b. Directly and primarily used to maintain
				the integrity of the product or to maintain unique environmental conditions
				required for either the product or the computers, computer peripherals,
				machinery, and equipment used in processing by a manufacturer, including test
				equipment used to control quality and specifications of the product (as
				described in rule 701-215.16(423)).
c. Directly and primarily used in research
				and development of new products or processes of processing (as described in
				rule 701-215.17 (423)).
d. Directly and primarily used in recycling
				or reprocessing of waste products (as described in rule
				701-215.19 (423)).
e. Pollution-control equipment used by a
				manufacturer, including but not limited to that required or certified by an
				agency of this state or of the United States government (as described in rule
				701-215.20 (423)).
f. Fuel used in creating heat, power, steam,
				or for generating electrical current, or from the sale of electricity, consumed
				by computers, computer peripherals, machinery, or equipment used in an exempt
				manner described in paragraphs 215.14(1)
"a"
through
"e"
(as described in rule 701-215.21(423)).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 215 - Exemptions Primarily Benefiting Manufacturers and Other Persons Engaged in Processing › Rule 701-215.15 - Exemption for the Sale of Property Directly and Primarily Used in Processing by a Manufacturer

Current through Register Vol. 47, No. 3, July 24, 2024
The sales price of computers, computer peripherals,
				  machinery, equipment, replacement parts, supplies, and materials used to
				  construct or self-construct computers, computer peripherals, machinery,
				  equipment, replacement parts, and supplies is exempt from sales and use tax
				  when the property is directly and primarily used in processing by a
				  manufacturer.
(1)
Required
				elements.
To qualify for exemption under this rule, the purchaser must
				prove the property is:
a. Computers, computer
				peripherals, machinery, equipment, replacement parts, supplies, or materials
				used to construct or self-construct computers, computer peripherals, machinery,
				equipment, replacement parts, or supplies (see subrule 230.14(2));
b. Directly used (see subrule
				230.15(2));
c. Primarily used (see
				subrule 230.15(2));
d. Used in
				processing (see subrule 230.15(3)); and
e. Used by a manufacturer (see subrule
				230.15(4)).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 215 - Exemptions Primarily Benefiting Manufacturers and Other Persons Engaged in Processing › Rule 701-215.15 - Exemption for the Sale of Property Directly and Primarily Used in Processing by a Manufacturer

Current through Register Vol. 47, No. 3, July 24, 2024
The sales price of computers, computer peripherals,
				  machinery, equipment, replacement parts, supplies, and materials used to
				  construct or self-construct computers, computer peripherals, machinery,
				  equipment, replacement parts, and supplies is exempt from sales and use tax
				  when the property is directly and primarily used in processing by a
				  manufacturer.
(1)
Required
				elements.
To qualify for exemption under this rule, the purchaser must
				prove the property is:
a. Computers, computer
				peripherals, machinery, equipment, replacement parts, supplies, or materials
				used to construct or self-construct computers, computer peripherals, machinery,
				equipment, replacement parts, or supplies as described in subrule
				215.14(2);
b. Directly used as
				described in subrule 215.15(2);
c.
				Primarily used as described in subrule 215.15(2);
d. Used in processing as described in subrule
				215.15(3); and
e. Used by a
				manufacturer as described in subrule 215.15(4).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 215 - Exemptions Primarily Benefiting Manufacturers and Other Persons Engaged in Processing › Rule 701-215.16 - Exemption for the Sale of Property Directly and Primarily Used by a Manufacturer to Maintain Integrity or Unique Environmental Conditions

Current through Register Vol. 47, No. 3, July 24, 2024
The sales price of computers, computer peripherals,
				  machinery, equipment, replacement parts, supplies and materials used to
				  construct or self-construct computers, computer peripherals, machinery,
				  equipment, replacement parts, and supplies is exempt from sales and use tax
				  when the property is directly and primarily used to maintain the integrity of
				  the product or to maintain unique environmental conditions required for either
				  the product or the computers, computer peripherals, machinery, and equipment
				  used in processing by a manufacturer, including test equipment used to control
				  quality and specifications of the product.
(1)
Required elements.
To
				qualify for exemption under this rule, the purchaser must prove the property
				is:
a. Computers, computer peripherals,
				machinery, equipment, replacement parts, supplies, or materials used to
				construct or self-construct computers, computer peripherals, machinery,
				equipment, replacement parts, or supplies (see subrule 230.14(2));
b. Directly used (see subrule
				230.15(2));
c. Primarily used (see
				subrule 230.15(2));
d. Used by a
				manufacturer (see subrule 230.15(4)); and
e. Used to maintain:
(1) A manufactured product's
				integrity;
(2) Unique environmental
				conditions required for a manufactured product; or
(3) Unique environmental conditions required
				for other computers, computer peripherals, machinery, equipment, replacement
				parts, or supplies directly and primarily used in processing by a
				manufacturer.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 215 - Exemptions Primarily Benefiting Manufacturers and Other Persons Engaged in Processing › Rule 701-215.16 - Exemption for the Sale of Property Directly and Primarily Used by a Manufacturer to Maintain Integrity or Unique Environmental Conditions

Current through Register Vol. 47, No. 3, July 24, 2024
The sales price of computers, computer peripherals,
				  machinery, equipment, replacement parts, supplies and materials used to
				  construct or selfconstruct computers, computer peripherals, machinery,
				  equipment, replacement parts, and supplies is exempt from sales and use tax
				  when the property is directly and primarily used to maintain the integrity of
				  the product or to maintain unique environmental conditions required for either
				  the product or the computers, computer peripherals, machinery, and equipment
				  used in processing by a manufacturer, including test equipment used to control
				  quality and specifications of the product.
(1)
Required elements.
To
				qualify for exemption under this rule, the purchaser must prove the property
				is:
a. Computers, computer peripherals,
				machinery, equipment, replacement parts, supplies, or materials used to
				construct or self-construct computers, computer peripherals, machinery,
				equipment, replacement parts, or supplies as described in subrule
				215.14(2);
b. Directly used as
				described in subrule 215.15(2);
c.
				Primarily used as described in subrule 215.15(2);
d. Used by a manufacturer as described in
				subrule 215.15(4); and
e. Used to
				maintain:
(1) A manufactured product's
				integrity;
(2) Unique environmental
				conditions required for a manufactured product; or
(3) Unique environmental conditions required
				for other computers, computer peripherals, machinery, equipment, replacement
				parts, or supplies directly and primarily used in processing by a
				manufacturer.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 215 - Exemptions Primarily Benefiting Manufacturers and Other Persons Engaged in Processing › Rule 701-215.17 - Exemption for the Sale of Property Directly and Primarily Used in Research and Development of New Products or Processes of Processing

Current through Register Vol. 47, No. 3, July 24, 2024
The sales price of computers, computer peripherals,
				  machinery, equipment, replacement parts, supplies, and materials used to
				  construct or self-construct computers, computer peripherals, machinery,
				  equipment, replacement parts, and supplies is exempt from sales and use tax
				  when the property is directly and primarily used in research and development of
				  new products or processes of processing.
(1) Required elements. To qualify for
				exemption under this rule, the purchaser must prove the property is:
a. Computers, computer peripherals,
				machinery, equipment, replacement parts, supplies, or materials used to
				construct or self-construct computers, computer peripherals, machinery,
				equipment, replacement parts, or supplies (see subrule 230.14(2));
b. Directly used (see subrules 230.15(2) and
				230.17(3));
c. Primarily used (see
				subrule 230.15(2)); and
d. Used in
				research and development (see subrule 230.17(2)) of:
(1) New products; or
(2) Processes of processing.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 215 - Exemptions Primarily Benefiting Manufacturers and Other Persons Engaged in Processing › Rule 701-215.17 - Exemption for the Sale of Property Directly and Primarily Used in Research and Development of New Products or Processes of Processing

Current through Register Vol. 47, No. 3, July 24, 2024
The sales price of computers, computer peripherals,
				  machinery, equipment, replacement parts, supplies, and materials used to
				  construct or selfconstruct computers, computer peripherals, machinery,
				  equipment, replacement parts, and supplies is exempt from sales and use tax
				  when the property is directly and primarily used in research and development of
				  new products or processes of processing.
(1) Required elements. To qualify for
				exemption under this rule, the purchaser must prove the property is:
a. Computers, computer peripherals,
				machinery, equipment, replacement parts, supplies, or materials used to
				construct or self-construct computers, computer peripherals, machinery,
				equipment, replacement parts, or supplies as described in subrule
				215.14(2);
b. Directly used as
				described in subrules 215.15(2) and 215.17(3);
c. Primarily used as described in subrule
				215.15(2); and
d. Used in research
				and development as described in subrule 215.17(2) of:
(1) New products; or
(2) Processes of processing.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 215 - Exemptions Primarily Benefiting Manufacturers and Other Persons Engaged in Processing › Rule 701-215.18 - Exemption for the Sale of Computers and Computer Peripherals Used in Processing or Storage of Data or Information by an Insurance Company, Financial Institution, or Commercial Enterprise

Current through Register Vol. 47, No. 3, July 24, 2024
The sales price of computers and computer peripherals is
				  exempt from sales and use tax when the computers and computer peripherals are
				  used in processing or storage of data or information by an insurance company,
				  financial institution, or commercial enterprise. The sales price of machinery,
				  equipment, replacement parts, supplies, and materials used to construct or
				  self-construct computers, computer peripherals, machinery, equipment,
				  replacement parts, and supplies is not exempt under this rule.
(1)
Required elements.
To
				qualify for exemption under this rule, the purchaser must prove the property
				is:
a. Computers or computer peripherals (see
				Iowa Code section
				423.1);
b. Used in processing or storage of data or
				information (see subrule 230.18(2)); and
c. Used by:
(1) An insurance company (see subrule
				230.18(3));
(2) A financial
				institution (see subrule 230.18(3)); or
(3) A commercial enterprise (see subrule
				230.18(3)).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 215 - Exemptions Primarily Benefiting Manufacturers and Other Persons Engaged in Processing › Rule 701-215.19 - Exemption for the Sale of Property Directly and Primarily Used in Recycling or Reprocessing of Waste Products

Current through Register Vol. 47, No. 3, July 24, 2024
The sales price of computers, computer peripherals,
				  machinery, equipment, replacement parts, supplies, and materials used to
				  construct or self-construct computers, computer peripherals, machinery,
				  equipment, replacement parts, and supplies is exempt from sales and use tax
				  when the property is directly and primarily used in recycling or reprocessing
				  of waste products.
(1)
Required
				elements.
To qualify for exemption under this rule, the purchaser must
				prove the property is:
a. Computers, computer
				peripherals, machinery, equipment, replacement parts, supplies, or materials
				used to construct or self-construct computers, computer peripherals, machinery,
				equipment, replacement parts, or supplies (see subrule 230.14(2));
b. Directly used (see subrule
				230.15(2));
c. Primarily used (see
				subrule 230.15(2)); and
d. Used in:
(1) Recycling of waste products (see subrule
				230.19(2)); or
(2) Reprocessing of
				waste products (see subrule 230.19(2)).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 215 - Exemptions Primarily Benefiting Manufacturers and Other Persons Engaged in Processing › Rule 701-215.19 - Exemption for the Sale of Property Directly and Primarily Used in Recycling or Reprocessing of Waste Products

Current through Register Vol. 47, No. 3, July 24, 2024
The sales price of computers, computer peripherals,
				  machinery, equipment, replacement parts, supplies, and materials used to
				  construct or self-construct computers, computer peripherals, machinery,
				  equipment, replacement parts, and supplies is exempt from sales and use tax
				  when the property is directly and primarily used in recycling or reprocessing
				  of waste products.
(1)
Required
				elements.
To qualify for exemption under this rule, the purchaser must
				prove the property is:
a. Computers, computer
				peripherals, machinery, equipment, replacement parts, supplies, or materials
				used to construct or self-construct computers, computer peripherals, machinery,
				equipment, replacement parts, or supplies as described in subrule
				215.14(2);
b. Directly used as
				described in subrule 215.15(2);
c.
				Primarily used as described in subrule 215.15(2); and
d. Used in:
(1) Recycling of waste products as described
				in subrule 215.19(2); or
(2)
				Reprocessing of waste products as described in subrule 215.19(2).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 215 - Exemptions Primarily Benefiting Manufacturers and Other Persons Engaged in Processing › Rule 701-215.20 - Exemption for the Sale of Pollution-control Equipment Used by a Manufacturer

Current through Register Vol. 47, No. 3, July 24, 2024
The sales price of pollution-control equipment, including but
				  not limited to equipment required or certified by an agency of Iowa or of the
				  United States government, is exempt from sales and use tax when the property is
				  used by a manufacturer. Other equipment, and computers, computer peripherals,
				  machinery, replacement parts, supplies, and materials used to construct or
				  self-construct computers, computer peripherals, machinery, equipment,
				  replacement parts, and supplies are not exempt from sales and use tax under
				  this rule.
(1) Required elements. To
				qualify for exemption under this rule, the purchaser must prove the property
				is:
a. Pollution-control equipment (see
				subrule 230.20(2)); and
b. Used by
				a manufacturer (see subrule 230.15(4)).