reglab/statecodes huggingface dataset:
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 219 - Sales and Use Tax on Construction Activities › Rule 701-219.10 - Construction Contracts With Equipment Sales (mixed contracts)

Current through Register Vol. 47, No. 3, July 24, 2024
Construction contracts with equipment sales, commonly known
				  as mixed contracts, place a dual burden on the contractor, as a contractor is a
				  consumer of construction materials and also a retailer of the machinery and
				  equipment. As a consumer by statute of construction building materials,
				  supplies, and building equipment, a contractor is required to pay sales tax to
				  the supplier at the time of purchase or remit use tax to the department if
				  purchasing building materials, supplies, and building equipment from an
				  out-of-state supplier Reference 701-Chapter 30 of the rules regarding use
				  taxes. Machinery and equipment must be purchased for resale by the contractor
				  if the machinery and equipment does not become real property. This means that
				  the contractor does not pay tax to a supplier at the time of purchase of
				  machinery and equipment, but instead, the contractor is responsible for
				  collecting sales tax on the sales price from a sponsor and remitting it to the
				  department.
Example. company A contracts with company B to have company B
				  build a new building and install all of the production machinery and equipment
				  for the new building. company B must pay tax on its purchases of building
				  materials and supplies which lose their identity as tangible personal property
				  and become a component part of the real property. company B also purchases some
				  refrigeration units for the new building which maintain their identity as
				  tangible personal property. These units must be purchased tax-free by company B
				  because they will be resold. company B would then charge company A the tax on
				  the units which retain their identity as tangible personal property. The
				  installation charges for the units which remain as tangible personal property
				  would be part of the total sales pricesubject to tax unless they are separately
				  contracted or, if no written contract exists, are separately itemized on the
				  billing from company B to company A.
When a mixed construction contract is let for a lump-sum
				  amount, the machinery and equipment furnished and installed shall be
				  considered, for the purposes of this rule only, as being sold by the contractor
				  for an amount equal to the cost of the machinery and equipment.
Persons required to collect sales tax in Iowa under machinery
				  and equipment contracts or a mixed contract are required to have a sales tax or
				  a retailer's use tax permit.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 219 - Sales and Use Tax on Construction Activities › Rule 701-219.11 - Distinguishing Machinery and Equipment From Real Property

Current through Register Vol. 47, No. 3, July 24, 2024
A construction contract or a contract for reconstruction,
				  alteration, expansion, or remodeling does not include a contract for the sale
				  and installation of machinery or equipment. Machinery and equipment are
				  tangible personal property when it is purchased and remains tangible personal
				  property after installation. Generally, tangible personal property can be moved
				  without causing damage or injury to itself or to the structure, does not bear
				  the weight of the structure, and does not in any other manner constitute an
				  integral part of a structure. Manufactured machinery and equipment that does
				  not become permanently annexed to the realty remains tangible personal property
				  after installation.
(1)
Examples of tangible personal property that remains tangible personal
				property after installation.
Under normal conditions, the following
				nonexclusive list remains tangible personal property after installation.
a. Furniture, including office furniture and
				equipment, washers and dryers, portable lamps, home freezers, portable
				appliances, and window air-conditioning units.
b. Portable items such as casework, tables,
				counters, cabinets, lockers, athletic and gymnasium equipment, and other
				related easily movable property attached to the structure.
c. Machinery, equipment, tools, appliances,
				and materials used exclusively as such by manufacturers, industrial processors,
				and others performing a processing function with the items.
d. Radio and television sets and antennas,
				including radio, television, and cable television station equipment, but not
				broadcasting or telecommunications towers.
e. Certain equipment used by restaurants and
				in institutional kitchens; for instance, dishwashers, stainless steel wall
				cabinets, stainless steel natural gas stoves, stainless steel natural gas
				convection ovens, and combination ovens and steamers with stands. This
				paragraph is not applicable to similar items used in residential kitchens.
Therefore, sales of items that remain tangible personal
				  property after installation are subject to sales tax. If the installation of
				  such items involves the performance of one or more enumerated services, the
				  labor charges are also subject to sales tax, unless an exemption
				  applies.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 219 - Sales and Use Tax on Construction Activities › Rule 701-219.12 - Tangible Personal Property That Becomes Structures

Current through Register Vol. 47, No. 3, July 24, 2024
Items that are manufactured as tangible personal property
				  can, by their nature, become structures. However, the determination is factual
				  and must be made on an item-by-item basis. For exemptions related to the sale
				  of computers, machinery, and equipment occurring as part of a contract entered
				  into on or after July 1, 2016, see rules 701-230.14 (423) to 701-230.22 (423).
				  The following is a listing of criteria that courts have used in making such a
				  determination:
1. The degree of
				architectural and engineering skills necessary to design and construct the
				structure.
2. The overall scope of
				the business and the contractual obligations of the person designing and
				building the structure.
3. The
				amount and variety of materials needed to complete the structure, including the
				identity of materials prior to assembly and the complexity of
				assembly.
4. The size and weight of
				the structure.
5. The permanency or
				degree of annexation of the structure to other real property which would affect
				its mobility.
6. The cost of
				building, moving or dismantling the structure.
7. For property sold as part of a contract
				entered into on or after July 1, 2016, computers, machinery, or equipment used
				for an exempt purpose under Iowa Code section
				4233(47).
				remains tangible personal property. See rules 701-230.14 (423) to 701-230.22
				(423).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 219 - Sales and Use Tax on Construction Activities › Rule 701-219.12 - Tangible Personal Property That Becomes Structures

Current through Register Vol. 47, No. 3, July 24, 2024
Items that are manufactured as tangible personal property
				  can, by their nature, become structures. However, the determination is factual
				  and must be made on an item-by-item basis.
(1)
Criteria to determine if tangible
				personal property has become a structure.
The following are intended
				only to be a summation of factors that the department will consider in
				determining whether or not a project involves construction:
a. The degree of architectural and
				engineering skills necessary to design and construct the structure.
b. The overall scope of the business and the
				contractual obligations of the person designing and building the
				structure.
c. The amount and
				variety of materials needed to complete the structure, including the identity
				of materials prior to assembly and the complexity of assembly.
d. The size and weight of the
				structure.
e. The permanency or
				degree of annexation of the structure to other real property, which would
				affect its mobility.
f. The cost of
				building, moving or dismantling the structure.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 219 - Sales and Use Tax on Construction Activities › Rule 701-219.14 - Transportation Cost

Current through Register Vol. 47, No. 3, July 24, 2024
Transportation charges and delivery charges are not subject
				  to the Iowa sales and use tax when they are separately contracted or, if no
				  written contract exists, are separately itemized on the billing from the seller
				  to the purchaser Reference rule
				  701-1513.
				  (422,423).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 219 - Sales and Use Tax on Construction Activities › Rule 701-219.14 - Transportation Cost

Current through Register Vol. 47, No. 3, July 24, 2024
Transportation charges and delivery charges are not subject
				  to the Iowa sales and use tax when they are separately contracted or, if no
				  written contract exists, are separately itemized on the billing from the seller
				  to the purchaser. More information can be found in rule 701-204.8(423).
This rule is intended to implement Iowa Code sections
				  423.2 and
				  423.3.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 219 - Sales and Use Tax on Construction Activities › Rule 701-219.15 - Start-up Charges

Current through Register Vol. 47, No. 3, July 24, 2024
Start-up charges are not subject to the Iowa sales and use
				  tax when they are separately contracted or, if no written contract exists, are
				  separately itemized on the billing from the seller to the
				  purchaser
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 219 - Sales and Use Tax on Construction Activities › Rule 701-219.15 - Liability of Subcontractors

Current through Register Vol. 47, No. 3, July 24, 2024
A subcontractor providing materials and labor on the actual
				  construction of a structure has the same status and tax responsibilities as a
				  contractor under Iowa statutes. However, where an individual or firm is hired
				  to provide machinery and equipment to a contractor or a subcontractor, the
				  individual or firm is considered a materials supplier rather than a
				  subcontractor. This is true even though the machinery and equipment are
				  supplied with installation. Items of machinery and equipment sold by materials
				  suppliers to contractors shall be sold for resale, and the contractor must
				  provide the materials supplier with a valid resale certificate.
This rule is intended to implement Iowa Code sections
				  423.2 and
				  423.3.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 219 - Sales and Use Tax on Construction Activities › Rule 701-219.16 - Liability of Subcontractors

Current through Register Vol. 47, No. 3, July 24, 2024
A subcontractor who is providing materials and labor on the
				  actual construction of the building or structure has the same status and tax
				  responsibilities as a general contractor under the Iowa statutes. However,
				  where an individual or firm is hired to provide machinery and equipment to a
				  general contractor or another subcontractor, the individual or firm is
				  considered a material supplier rather than a subcontractor This is true even
				  though the machinery and equipment are supplied with installation. Items of
				  machinery and equipment sold by material suppliers to contractors shall be sold
				  for resale and the contractor must provide the material supplier with a valid
				  resale certificate.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 219 - Sales and Use Tax on Construction Activities › Rule 701-219.16 - Liability of Sponsors

Current through Register Vol. 47, No. 3, July 24, 2024
The sponsor cannot be held responsible for a tax liability
				  incurred on building materials, supplies, and equipment by a contractor or
				  subcontractor in the completion of a construction contract or a contract for
				  reconstruction, alteration, expansion, or remodeling. Likewise, a contractor
				  cannot be held responsible for the tax liability incurred on building
				  materials, supplies, and equipment by a subcontractor in the completion of a
				  construction contract or a contract for reconstruction, alteration, expansion,
				  or remodeling. The tax responsibility regarding machinery and equipment
				  contracts depends on where the sale was consummated. If the sale was
				  consummated in Iowa, the seller is responsible for the collection and
				  remittance of tax unless a valid exemption certificate is given by the
				  purchaser. If the sale was consummated outside Iowa and the seller does not
				  remit use tax to the department, then a use tax would be due from the Iowa
				  user.
This rule is intended to implement Iowa Code sections
				  423.2 and
				  423.5.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 219 - Sales and Use Tax on Construction Activities › Rule 701-219.17 - Liability of Sponsors

Current through Register Vol. 47, No. 3, July 24, 2024
The sponsor cannot be held responsible for a tax liability
				  incurred on building materials, supplies and equipment by a general contractor
				  or subcontractor in the completion of a construction contract. Likewise, a
				  general contractor cannot be held responsible for the tax liability incurred on
				  building materials, supplies and equipment by a subcontractor in the completion
				  of a construction contract. The tax responsibility regarding machinery and
				  equipment contracts depends on where the sale was consummated. If the sale was
				  consummated in Iowa, the seller is responsible for the collection and
				  remittance of tax unless a valid exemption certificate is given by the
				  purchaser If the sale was consummated outside Iowa and the seller does not
				  remit use tax to the department, then a use tax would be due from the Iowa
				  user.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 219 - Sales and Use Tax on Construction Activities › Rule 701-219.17 - Withholding

Current through Register Vol. 47, No. 3, July 24, 2024
A sponsor of a contract with a nonregistered out-of-state
				  (nonresident) contractor may be asked to withhold the final payment of the
				  contract as a guarantee that sales and use taxes will be paid. The withholding
				  requirement may also apply to registered out-of-state contractors at the
				  discretion of the department. The department will issue a notice to the sponsor
				  to support the withholding of funds. In order to seek a release of the notice,
				  the out-of-state contractor is required to file a report with the department
				  consisting of the following departmental forms:
1. Form 35-012, which is a listing of
				subcontractors to whom the out-of-state contractor has awarded a construction
				contract. This statement should be submitted on each project as it becomes
				available.
2. Form 35-013, which is
				a list of material suppliers both in state and out of state from whom tangible
				personal property has been purchased for use in completing each project or
				contract.
3. Form 35-001, which is
				a summary of the provisions of the actual contract.
All letters of release furnished by the department are
				  subject to audit and, therefore, are not unconditional release from any Iowa
				  sales or use tax liability. All letters of release will be issued within 60
				  days upon receipt of the proper information unless an error or discrepancy is
				  noted.
This rule is intended to implement Iowa Code sections
				  423.2 and
				  423.5.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 219 - Sales and Use Tax on Construction Activities › Rule 701-219.18 - Withholding

Current through Register Vol. 47, No. 3, July 24, 2024
A sponsor of a contract with a nonregistered out-of-state
				  (nonresident) contractor may be asked to withhold the final payment of the
				  contract as a guarantee that sales and use taxes will be paid. The withholding
				  requirement may also apply to registered out-of-state contractors at the
				  discretion of the department. The department will issue a notice to the sponsor
				  to support the withholding of funds. In order to seek a release of the notice,
				  the out-of-state contractor is required to file a report with the department
				  consisting of the following departmental forms:
1. Form 35-012, which is a listing of
				subcontractors to whom the out-of-state contractor has awarded a construction
				contract. This statement should be submitted on each project as it becomes
				available.
2. Form 35-013, which is
				a list of material suppliers both in state and out of state from whom tangible
				personal property has been purchased for use in completing each project or
				contract.
3. Form 35-001, which is
				a summary of the provisions of the actual contract.
All letters of release furnished by the department are
				  subject to audit and, therefore, are not unconditional release from any Iowa
				  sales or use tax liability. All letters of release will be issued within 60
				  days upon receipt of the proper information unless an error or discrepancy is
				  noted.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 219 - Sales and Use Tax on Construction Activities › Rule 701-219.18 - Resale Certificates

Current through Register Vol. 47, No. 3, July 24, 2024
Whenever machinery and equipment that will remain tangible
				  personal property after installation is purchased for a machinery and equipment
				  contract by a contractor from a supplier, it should be purchased for resale.
				  Rule 701-219.9 (423) provides more
				  information on this topic. Resale purchases are most commonly related to
				  machinery and equipment sales contracts with installation and mixed
				  construction contracts. Contractor-retailers and persons making repairs may
				  also purchase materials for resale as long as they collect tax on their retail
				  sales and pay the tax themselves on items withdrawn from inventory for use in
				  the performance of a construction contract or a contract for reconstruction,
				  alteration, expansion, or remodeling. Rule
				  701-219.4 (423) and subrule
				  219.13(1) provide more information.
This rule is intended to implement Iowa Code section
				  423.45.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 219 - Sales and Use Tax on Construction Activities › Rule 701-219.19 - Resale Certificates

Current through Register Vol. 47, No. 3, July 24, 2024
Whenever machinery and equipment which will remain tangible
				  personal property after installation is purchased for a machinery and equipment
				  contract by a contractor from a supplier or a material supplier, it should be
				  purchased for resale. See rule 219.9(423). Resale purchases are most commonly
				  related to machinery and equipment sales contracts with installation and mixed
				  construction contracts. Contractor-retailers and persons making repairs may
				  also purchase materials for resale as long as they collect tax on their retail
				  sales and pay the tax themselves on items withdrawn from inventory for use in
				  the performance of a construction contract. See rule 219.4(423) and subrule
				  219.13(1). Resale certificates can be obtained by contacting the Iowa
				  department of revenue. Reference rule
				  701-153.
				  (422,423) for detailed information on resale certificates.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 219 - Sales and Use Tax on Construction Activities › Rule 701-219.19 - Reporting for Use Tax

Current through Register Vol. 47, No. 3, July 24, 2024
An Iowa contractor can report use tax as consumed goods on a
				  sales and use tax return. Tax is due in the tax period the materials are
				  delivered into Iowa. Nonresident contractors should report use tax on a sales
				  and use tax return, which is available directly from the department of revenue,
				  unless the contractor is registered with the department.
This rule is intended to implement Iowa Code section
				  423.31.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 219 - Sales and Use Tax on Construction Activities › Rule 701-219.20 - Reporting for Use Tax

Current through Register Vol. 47, No. 3, July 24, 2024
An Iowa contractor can report use tax either on a consumer's
				  use tax return or as consumed goods on a sales tax return. Tax is due in the
				  quarter the materials are delivered into Iowa. Nonresident contractors should
				  report use tax on a consumer's use tax return. Consumer's use tax returns for
				  nonresident contractors must be obtained directly from the department of
				  revenue unless the contractor is registered with the
				  department.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 219 - Sales and Use Tax on Construction Activities › Rule 701-219.20 - Exempt Sale, Lease, or Rental of Equipment Used by Contractors, Subcontractors, or Builders

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Exempt lease or rental of machinery and equipment.
The sales
				price on the lease or rental only of the following types of machinery and
				equipment is exempt from tax: all machinery, equipment, and replacement parts
				directly and primarily used by contractors, subcontractors, and builders for
				new construction, reconstruction, alterations, expansion, or remodeling of
				structures and all machinery, equipment, and replacement parts that improve the
				performance, safety, operation, or efficiency of the equipment and replacement
				parts so used. A contractor's, subcontractor's, or builder's purchases of this
				equipment would continue to be taxable, as would a lessor's purchases of
				machinery, equipment, or replacement parts for subsequent exempt rental to a
				contractor, subcontractor, or builder.
(2)
Exempt sales, including lease or
				rental of equipment.
The sales price on the sale in any form,
				including lease or rental, of the following types of equipment is exempt from
				the tax imposed by Iowa Code chapter 423: self-propelled building equipment,
				self-constructed cranes, pile drivers, structural concrete forms, regular and
				motorized scaffolding, generators, or attachments customarily drawn or attached
				to those items of equipment, including auxiliary attachments that improve the
				performance, safety, operation, or efficiency of the equipment and replacement
				parts and are directly and primarily used by contractors, subcontractors, and
				builders for new construction, reconstruction, alterations, expansion, or
				remodeling of real property or structures. The sales price from a sale in a
				form other than that of a lease or rental is not exempt from all excise tax.
This rule is intended to implement Iowa Code sections
				  423.3(37)  and
				  423.3(85).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 219 - Sales and Use Tax on Construction Activities › Rule 701-219.21 - Exempt Sale, Lease, or Rental of Equipment Used by Contractors, Subcontractors, or Builders

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Exempt lease or rental of machinery and equipment.
The sales
				price on the lease or rental only of the following types of machinery and
				equipment is exempt from tax: all machinery, equipment, and replacement parts
				directly and primarily used by contractors, subcontractors, and builders for
				new construction, reconstruction, alterations, expansion, or remodeling of real
				property or structures and all machinery, equipment, and replacement parts
				which improve the performance, safety, operation, or efficiency of the
				equipment and replacement parts so used. A contractor's, subcontractor's, or
				builder's purchases of this equipment would continue to be taxable, as would a
				lessor's purchases of machinery, equipment, or replacement parts for subsequent
				exempt rental to a contractor, subcontractor, or builder.
(2)
Exempt sales, including lease or
				rental of equipment.
Beginning July 1, the sales price on the sale in
				any form, including lease or rental, of the following types of equipment is
				exempt from the tax imposed by Iowa Code chapter 423: self-propelled building
				equipment, self-constructed cranes, pile drivers, structural concrete forms,
				regular and motorized scaffolding, generators, or attachments customarily drawn
				or attached to those items of equipment, including auxiliary attachments which
				improve the performance, safety, operation, or efficiency of the equipment and
				replacement parts and are directly and primarily used by contractors,
				subcontractors, and builders for new construction, reconstruction, alterations,
				expansion, or remodeling of real property or structures. The sales price from a
				sale in a form other than that of a lease or rental is not exempt from all
				excise tax. Iowa Code chapter 423D provides more information on the excise tax
				imposed on these transactions.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 219 - Sales and Use Tax on Construction Activities › Rule 701-219.21 - 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 provides
				  for the sale and delivery of materials and also the conversion of the materials
				  into realty improvements, the contractor is the ultimate consumer of the
				  material used and is liable for sales tax. Tax applies on the sales price of
				  the material.
This rule is intended to implement Iowa Code section
				  423.3(31).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 219 - Sales and Use Tax on Construction Activities › Rule 701-219.22 - House and Building Moving

Current through Register Vol. 47, No. 3, July 24, 2024
Persons engaged in the business of moving houses or buildings
				  from one location to another, for any reason, are selling a service subject to
				  sales tax. The sales price from this service is not considered a transportation
				  charge.
This rule is intended to implement Iowa Code section
				  423.2(6)
"x."
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 219 - Sales and Use Tax on Construction Activities › Rule 701-219.22 - Construction Contracts With Designated Exempt Entities

Current through Register Vol. 47, No. 3, July 24, 2024
This rule applies to exempt sales of building materials,
				  supplies, equipment, or services to certain persons performing construction
				  contracts for sponsors that are designated exempt entities and the continuing
				  right of designated exempt entities and other persons to seek refund of taxes
				  paid by persons performing construction contracts.
(1)
Definitions.
"Construction contract"
means the same as
				  defined in rule 701-219.8 (423).
"Designated exempt entity"
means the same as
				  defined in Iowa Code section
				  423.3(80).
"Gov ConnectIowa"
means the e-services
				  portal of the department.
(2)
Registration with the
				department.
A designated exempt entity seeking to issue exemption
				certificates to contractors, subcontractors, builders, or manufacturers
				performing construction contracts shall register with the department through
				GovConnectIowa. The designated exempt entity shall provide the following
				information:
a. The name and address of the
				designated exempt entity.
b. The
				federal identification number of the designated exempt entity.
c. The name of the construction project or
				the project number for which exption is requested.
d. A general description of the construction
				project.
e. The name and address of
				all contractors, subcontractors, builders, or manufacturers to which the
				designated exempt entity shall provide exemption certificates.
f. Additional information as requested by the
				department if the status of the entity seeking registration as a designated
				exempt entity is unclear.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 219 - Sales and Use Tax on Construction Activities › Rule 701-219.23 - Construction Contracts With Designated Exempt Entities

Current through Register Vol. 47, No. 3, July 24, 2024
This rule applies to exempt sales of building materials,
				  supplies, equipment, or services to certain persons performing construction
				  contracts for sponsors that are designated exempt entities and the continuing
				  right of designated exempt entities and other persons to seek refund of taxes
				  paid by persons performing construction contracts.
(1)
Definitions.
"Construction contract"
means the same as
				  defined in rule 701-219.8 (423).
"Designated exempt entity"
means the same as
				  defined in Iowa Code section
				  423.3(80).
"GovConnectIowa"
means the e-services portal
				  of the department.
(2)
Registration with the department.
A designated exempt entity
				seeking to issue exemption certificates to contractors, subcontractors,
				builders, or manufacturers performing construction contracts shall register
				with the department through GovConnectIowa. The designated exempt entity shall
				provide the following information:
a. The name
				and address of the designated exempt entity.
b. The federal identification number of the
				designated exempt entity.
c. The
				name of the construction project or the project number for which exemption is
				requested.
d. A general description
				of the construction project.
e. The
				name and address of all contractors, subcontractors, builders, or manufacturers
				to which the designated exempt entity shall provide exemption
				certificates.
f. Additional
				information as requested by the department if the status of the entity seeking
				registration as a designated exempt entity is unclear.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 220 - Exemptions Primarily of Benefit to Consumers › Rule 701-220.1 - Newspapers, Free Newspapers and Shoppers' Guides

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
In
				general.
The sales price from the sales of newspapers, free
				newspapers, and shoppers' guides is exempt from tax. The sales price from the
				sales of magazines, newsletters, and other periodicals which are not newspapers
				is taxable. Cases decided by the United States Supreme Court and the Supreme
				Court of Iowa prohibit exempting from taxation the sale of any periodical if
				that exemption from taxation is based solely upon the contents of that
				periodical. See
Arkansas Writers' Project, Inc. v. Ragland,
481
				U.S. 221, 107 S.Ct. 1722, 95 L.Ed.2d 209 (1987) and
Hearst v. Iowa
				Department of Revenue & Finance,
461 N.W.2d 295 (Iowa
				1990).
(2)
General
				characteristics of a newspaper.
"Newspaper" is a term with a common
				definition. A "newspaper" is a periodical, published at short, stated, and
				regular intervals, usually daily or weekly. It is printed on newsprint with
				news ink. The format of a newspaper is that of sheets folded loosely together
				without stapling. A newspaper is admitted to the U.S. mails as second-class
				material. Other frequent characteristics of newspapers are the following:
a. Newspapers usually contain
				photographs.
b. Information printed
				on newspapers is usually contained in columns on the newspaper pages.
c. The larger the cross section of the
				population which reads a periodical in the area where the periodical
				circulates, the more likely it is that the department will consider that
				periodical to be a "newspaper."
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 220 - Exemptions Primarily of Benefit to Consumers › Rule 701-220.1 - Newspapers, Free Newspapers and Shoppers' Guides

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
In
				general.
The sales price from the sale of newspapers, free newspapers,
				and shoppers' guides is exempt from tax. The sales price from the sale of
				magazines, newsletters, and other periodicals that are not newspapers is
				taxable.
(2)
General
				characteristics of a newspaper.
A "newspaper" is a periodical,
				published at short, stated, and regular intervals, usually daily or weekly. It
				is printed on newsprint with news ink, and usually contains photographs. The
				format of a newspaper is that of sheets folded loosely together without
				stapling. The larger the cross section of the population that reads a
				periodical in the area where the periodical circulates, the more likely it is
				that the department will consider that periodical to be a "newspaper."
This rule is intended to implement Iowa Code section
				  423.3(55).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 220 - Exemptions Primarily of Benefit to Consumers › Rule 701-220.7 - Prosthetic Devices, Durable Medical Equipment, and Mobility Enhancing Equipment

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Prosthetic devices.
The sales price from the sale of
				prosthetic devices is exempt from tax.
(2)
Durable medical equipment and
				mobility enhancing equipment.
The sales price from the sale of durable
				medical equipment and mobility enhancing equipment prescribed for human use
				that meet the provisions of subrules 220.7(3) and 220.7(4) is exempt from tax.
				"Prescribed" refers to a prescription issued in any form of oral, written,
				electronic, or other means of transmission by any of the persons described in
				subrule 220.5(3).
(3)
Definitions.
a.
"Durable medical equipment"
means equipment, including repair
				and replacement parts, but does not include mobility enhancing equipment, to
				which all of the following apply:
(1) Can
				withstand repeated use.
(2) Is
				primarily and customarily used to serve a medical purpose.
(3) Generally is not useful to a person in
				the absence of illness or injury.
(4) Is not worn in or on the body.
(5) Is for home use only.
(6) Is prescribed by a
				practitioner.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 220 - Exemptions Primarily of Benefit to Consumers › Rule 701-220.8 - Prosthetic Devices, Durable Medical Equipment, and Mobility Enhancing Equipment

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Prosthetic devices.
Sales or rental of prosthetic devices
				shall be exempt from sales tax.
(2)
Durable medical equipment and mobility enhancing equipment.
Sales or rental of durable medical equipment and mobility enhancing equipment
				prescribed for human use which meet the provisions of subrules 231.8(3) and
				231.8(4) shall be exempt from sales tax. "Prescribed" refers to a prescription
				issued in any form of oral, written, electronic, or other means of transmission
				by any of the persons described in paragraphs
"a"
through
"j"
of subrule 231.6(3).
(3)
Definitions.
a.
"Durable medical
				equipment"
means equipment, including repair and replacement parts,
				but does not include mobility enhancing equipment, to which all of the
				following apply:
1. Can withstand repeated
				use.
2. Is primarily and
				customarily used to serve a medical purpose.
3. Generally is not useful to a person in the
				absence of illness or injury.
4. Is
				not worn in or on the body.
5. Is
				for home use only.
6. Is prescribed
				by a practitioner.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 220 - Exemptions Primarily of Benefit to Consumers › Rule 701-220.9 - Raffles

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
For
				raffles conducted prior to July 1, 2015.
Prior to July 1, 2015, the
				sales price from the sale of tickets for a raffle conducted at a fair pursuant
				to Iowa Code section
				99B.5
				is exempt from sales and use tax.
(2)
For raffles conducted on or after
				July 1, 2015.
On or after July 1, 2015, the sales price from the sale
				of tickets for a raffle licensed and conducted at a fair pursuant to Iowa Code
				section
				99B.24 is exempt from
				sales and use tax.
This rule is intended to implement 2016 Iowa Code subsection
				  423.3(62).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 220 - Exemptions Primarily of Benefit to Consumers › Rule 701-220.9 - Sales of Diapers

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
In
				general.
The sales price of diapers, whether cloth or disposable, is
				exempt from sales tax. This includes children's diapers and adult
				diapers.
(2)
Definitions.
"Adult diapers"
means diapers other than
				  children's diapers.
"Children's diapers"
means diapers marketed
				  to be worn by children.
"Diaper"
means an absorbent garment worn by
				  humans who are incapable of, or have difficulty, controlling their bladder or
				  bowel movements.
This rule is intended to implement Iowa Code section
				  423.3(109).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 220 - Exemptions Primarily of Benefit to Consumers › Rule 701-220.10 - Exempt Sales of Prizes

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
In general.
The sales
				price from sales of tangible personal property, specified digital products, or
				services which will be given as prizes to players in games of skill, games of
				chance, raffles, and bingo games as defined in and lawful under Iowa Code
				chapter 99B is exempt from tax. See department of inspections and appeals'
				481-Chapters 100 through 106 for a description of the games of skill, games of
				chance, raffles, and bingo games which are lawful. See rule
				481-100.6 (99B) for a
				description of the prizes which may be lawfully awarded.
(2)
Gift certificates.
A
				gift certificate is not tangible personal property. If a person wins a gift
				certificate as a prize and then redeems the gift certificate for merchandise,
				tax is payable at the time the gift certificate is redeemed.
This rule is intended to implement Iowa Code section
				  423.3(62).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 220 - Exemptions Primarily of Benefit to Consumers › Rule 701-220.10 - Sale of Energy to Residential Customers

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Generally.
The sales
				price from the sale, furnishing, or service of metered natural gas, electricity
				and fuels, including propane and heating oils, to residential customers for use
				as energy for residential dwellings and units of apartment, and condominium
				complexes for human occupancy, is exempt from sales and use tax.
(2)
Definitions.
The
				following definitions are applicable to this rule:
"Energy"
means a substance that generates
				  power to operate fixtures or appliances within a residential dwelling or that
				  creates heat or cooling within a residential dwelling.
"Fuel"
means a liquid source of energy for a
				  residential dwelling, individual apartment unit, or condominium. "Fuel"
				  includes propane, heating fuel, and kerosene. However, "fuel" does not include
				  blended kerosene used as motor fuel or special fuel.
"Metered gas"
means natural gas that is
				  billed based on metered usage to provide energy to a residential dwelling,
				  individual apartment unit, or individual condominium.
"Residential dwelling"
means a structure
				  used exclusively for human occupancy. This does not include commercial or
				  agricultural structures, nor does it include nonresidential buildings attached
				  to or detached from a residential dwelling, such as an outbuilding. However, a
				  garage attached to or detached from a dwelling that is used strictly for
				  residential purposes qualifies for the exemption.
"Units of apartment and condominium
				  complexes."
A building containing apartment units or individual
				  condominiums is not considered to be qualifying property for purposes of this
				  rule. However, if each unit has a separate meter, the unit qualifies for the
				  exemption if it is classified as a qualifying property by the
				  utility.
(3)
Other
				nonqualifying structures.
Structures excluded from this exemption
				include but are not limited to nursing homes, adult living facilities, assisted
				living facilities, halfway houses, charitable residential facilities, YMCA
				residential facilities, YWCA residential facilities, and group homes.
This rule is intended to implement Iowa Code section
				  423.3(84).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 220 - Exemptions Primarily of Benefit to Consumers › Rule 701-220.11 - Modular Homes

Current through Register Vol. 47, No. 3, July 24, 2024
Forty percent of the sales price from the sale of a modular
				  home is exempt from tax. A "modular home" is any structure built in a factory,
				  made to be used as a place for human habitation, which cannot be attached or
				  towed behind a motor vehicle and which does not have permanently attached to
				  its body or frame any wheels or axles.
This rule is intended to implement 2005 Iowa Code subsection
				  423.3(63).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 220 - Exemptions Primarily of Benefit to Consumers › Rule 701-220.12 - Access to On-line Computer Service

Current through Register Vol. 47, No. 3, July 24, 2024
The sales price from charges paid to a provider for access to
				  an on-line computer service is exempt from tax. An "on-line computer service"
				  is one which provides for or enables multiple users to have computer access to
				  the Internet. Also, the furnishing of any contracted on-line service is exempt
				  from Iowa tax if the information is made available through a computer server.
				  The exemption applies to all contracted on-line services, as long as they
				  provide access to information through a computer server.
This rule is intended to implement 2005 Iowa Code subsection
				  423.3(64).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 220 - Exemptions Primarily of Benefit to Consumers › Rule 701-220.14 - Exclusion From Tax for Property Delivered by Certain Media

Current through Register Vol. 47, No. 3, July 24, 2024
A taxable "sale" of tangible personal property does not occur
				  if the substance of the transaction is delivered to the purchaser digitally,
				  electronically, or by utilizing cable, radio waves, microwaves, satellites, or
				  fiber optics. This exclusion from tax is also applicable to the leasing of
				  tangible personal property, since a lease is classified as a "sale" of tangible
				  personal property for the purposes of Iowa sales and use tax law. The exclusion
				  is not applicable to property delivered by any medium other than those listed
				  above. Sales of items such as artwork, drawings, photographs, music, electronic
				  greeting cards, "canned" software (reference 701-subrule 18.34(1)),
				  entertainment properties (e.g., films, concerts, books, and television and
				  radio programs), and all other digitized products delivered as described above
				  are not taxable, except the exclusion does not repeal by implication the tax on
				  the service of providing pay television. Reference rule
				  701-26.56 (422,423). If an order
				  for a product is placed by way of any of the media described above but the
				  product ordered is delivered by conventional, physical means, e.g., the U.S.
				  Postal Service or common carrier, sale of the product is not excluded from tax
				  under this rule.
The department considers delivery of tangible personal
				  property to a purchaser by way of a "load and leave" transaction to be delivery
				  by the use of conventional physical means. The sales price from the purchase of
				  property delivered through a load and leave transaction is not exempt from tax
				  under this rule. "Load and leave" means delivery to the purchaser by use of a
				  tangible storage media where the tangible storage media is not physically
				  transferred to the purchaser.
This rule is intended to implement 2005 Iowa Code subsection
				  423.3(66)
				   and Iowa Code chapter 423, subchapter
				  IV.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 220 - Exemptions Primarily of Benefit to Consumers › Rule 701-220.17 - Sales of Diapers

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
In
				general.
The sales price of diapers, whether cloth or disposable, is
				exempt from sales tax. This includes children's diapers and adult
				diapers.
(2)
Definitions.
"Adult diapers"
means diapers other than
				  children's diapers.
"Children's diapers"
means diapers marketed
				  to be worn by children.
"Diaper"
means an absorbent garment worn by
				  humans who are incapable of, or have difficulty, controlling their bladder or
				  bowel movements.
This rule is intended to implement Iowa Code section
				  423.3(109).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 221 - Miscellaneous Nontaxable Transactions › Rule 701-221.1 - Sales of Prepaid Merchandise Cards

Current through Register Vol. 47, No. 3, July 24, 2024
Sales of prepaid merchandise cards (other than prepaid
				  telephone calling cards) are not sales of tangible personal property and are
				  not sales for which the sales price is subject to Iowa tax. If a purchaser uses
				  a prepaid merchandise card to purchase taxable tangible personal property or
				  taxable services, sales tax is computed on the sales price at the time of the
				  sale and deducted from the prepaid amount remaining on the merchandise
				  card.
EXAMPLE: Customer A purchases a prepaid merchandise card from
				  ABC Clothing Company in the amount of $200. Customer A purchases a sweater for
				  $50 from ABC Clothing Company. ABC Clothing Company will debit A's card $53.00
				  ($50 × 1.06) for the state sales tax rate of 6 percent or $53.50 ($50
				  × 1.07) if a local option sales tax rate of 1 percent is
				  applicable.
This rule is intended to implement Iowa Code section
				  423.1(47).