Iowa Administrative Code

211.5(1) In general. The service charges imposed by financial institutions relating to a depositor’s checking account are subject to sales tax. If the same service is performed by a financial institution relating to an account that does not qualify as a checking account, the serv…

211.6(1) In general. Persons engaged in the business of barbering and beauty are selling a service subject to sales tax. 211.6(2) Definitions. For purposes of this rule: “Barbering” means the same as defined in Iowa Code section 157.1. “Beauty” means the same as “cosmetology” and…

211.7(1) Definitions. For purposes of this rule: “Photography” means the art or process of capturing or producing still or moving images, films, or videos using any device designed to record or capture images, film, or video. Taxable sales associated with photography services inc…

211.8(1) In general. Persons engaged in the business of repairing household appliances, television sets, or radio sets are selling a service subject to sales tax. 211.8(2) Definition. For purposes of this rule: “Household appliances” includes all mechanical devices normally used …

211.9(1) In general. Persons engaged in the business of operating machines of all kinds that belong to other persons and charge a fee for operating are selling a service subject to sales tax. Operation of the machine must be the central function of the service being performed and…

entity. For purposes of the exemption provided in Iowa Code section 423.3(78), the following definitions apply: 212.1(1) Educational. An activity has an “educational purpose” if the activity has as its primary objective to give instruction. The term “educational purpose” includes…

Tangible personal property purchased from the United States government or any of the federal governmental agencies shall be exempt from sales tax, but such purchases shall be taxable to the purchaser under the provisions of the use tax law. Persons making purchases from the Unite…

agencies and instrumentalities, are required to collect and remit tax on the sales price from taxable retail sales of tangible personal property, specified digital products, and taxable services. This rule does not apply to sales made by cities and counties in the state of Iowa t…

212.12(1) Exempt sales. Sales are exempt from tax under Iowa Code section 423.3(31) if the tangible personal property, taxable services, and specified digital products are: a. Sold directly to an exempt government entity described in Iowa Code section 423.3(31); b. Used for a pub…

sport. A “sport” is any activity or experience that involves some movement of the human body and gives enjoyment or recreation. An “athletic” sport is any sport that requires physical strength, skill, speed, or training in its performance. The following activities are nonexclusiv…

personal property or specified digital products to a nonprofit organization organized for the purpose of lending the tangible personal property to the general public for use by the public for nonprofit purposes are exempt from tax. The exemption contained in this rule is applicab…

instrumentality of federal, state or county government is subject to sales tax on fuel purchases that are within the urban transit system’s charter. Tax shall not apply to the sales price of fuel purchases made by a privately owned urban transit company for use outside the urban …

Relief Society, and U.S.O. Receipts from the sale of tangible personal property or specified digital products or from rendering, furnishing, or providing taxable services to the American Red Cross, Coast Guard Auxiliary, Navy-Marine Corps Relief Society, and U.S.O. shall be exemp…

tangible personal property or services are exempt as described in Iowa Code section 423.3(43), sales tax does not apply. Example: Company A sells point-of-sale computer equipment. The company is located in Des Moines, Iowa. Company A enters into a contract with company B to sell …

enumerated services purchased by any private nonprofit educational institution, as defined in Iowa Code section 423.3(17), in the state and used for educational purposes is exempt from sales tax. When purchases are made by any private nonprofit educational institution and the ins…

performed, rendered, or furnished to certain nonprofit corporations exempt from tax. 212.5(1) Unless a specific exemption applies, the sales price of tangible personal property, taxable services, and specified digital products sold to nonprofit corporations is subject to tax. Sal…

exemption for certain purchases by nonprofit private museums. 212.6(1) Definitions and examples. A “museum” is all of the following: a. An institution that is organized for educational, scientific, historical preservation, or aesthetic purposes. b. An institution that is predomin…

or performed by the state fair organized under Iowa Code chapter 173 or a county, district or fair society organized under Iowa Code chapter 174 are exempt from sales tax. This exemption does not apply to individuals, entities, or others that sell or provide services at the state…

nonprofit hospice facilities. “Hospice” and “hospice care” are defined in 42 CFR §418.3. A “freestanding hospice facility” is any hospice program housed in a building that is dedicated only to the hospice program and that is not attached to any other building or complex of buildi…

212.9(1) Iowa Code section 423.3(22) provides an exemption from tax for certain purchases made by private nonprofit art centers. 212.9(2) To qualify for the exemption, the organization will be all of the following: a. An art center, which is defined as a structure that displays a…

213.1(1) Definition. A “conditional sale” is a sale in which the vendee receives the right to the use of the goods that are the subject matter of the sale, but the transfer of title to the vendee is dependent on the performance of some condition by the vendee, usually the full pa…

When meal tickets, coupon books, or merchandise cards are sold by persons engaged exclusively in selling taxable commodities or services, tax shall be levied at the time such items are redeemed by the customer. Tax shall not be added at the time of purchase of the meal ticket, co…

213.11(1) Sale subject to tax. When tangible personal property that has been repossessed either by the original seller or by a finance company is resold to final users or consumers, the sales price from those sales is subject to tax. 213.11(2) Bad debts. A retailer repossessing p…

items of tangible personal property from materials available in stock or through placing orders for materials that have been selected by customers, all expenses and profits from the sale of such fabricated articles shall be included in the sales price. The retailer shall not dedu…

secondhand tangible personal property is subject to tax in the same manner as new property. This condition eliminates any consideration for secondhand merchandise to be treated differently than new merchandise when sold at retail for sales tax purposes. This rule is intended to i…

to any person constitutes a sale at retail of tangible personal property, and the sales price of these sales is subject to sales or use tax unless the carpeting and other floor coverings are purchased for resale or are otherwise exempt from tax. 213.14(1) The sales price of floor…

213.15(1) If goods shipped by a retailer have been delivered under a contract for sale to a consumer, and thereafter the goods are damaged in the course of transit to the consumer, the retailer and purchaser shall be liable for tax upon the full sale price of the goods, as the sa…

213.16(1) Engraving. Engraving includes the business of engraving on wood, metal, stone, or any other material. The engraved material is tangible personal property, the sales price of which is subject to tax. 213.16(2) Binding. Persons engaged in the business of binding any print…

specified digital products, or taxable services is deemed to be a consumer of such property, products, or services for tax purposes. The sales price from the sale of tangible personal property, specified digital products, or taxable services to such persons for such purposes is s…

213.18(1) In general. Webinars are generally taxable as specified digital products. Specifically, webinars fall into the “other digital products” category as a news or information product. Purchasing access to a live or pre-recorded webinar, even if the webinar’s purpose is educa…

etc. Sales of butane, propane and other like gases in cylinder drums and other similar containers purchased for cooking, heating and other purposes are taxable. 213.2(1) When gas of this type is sold and motor vehicle fuel tax is collected by the seller, sales or use tax shall no…

greater than face value. Curios, antiques, art work, coins, collector’s postage stamps and such articles sold to or by art collectors, philatelists, numismatists and other persons who purchase or sell such items of tangible personal property for use and not primarily for resale a…

213.4(1) When a retailer receives tangible personal property on consignment from others and the consigned merchandise is sold in the ordinary course of business with other merchandise owned or services performed by the retailer, the retailer or consignee shall be making sales at …

mounts and art productions. The sales price of electrotypes, types, zinc etchings, halftones, stereotypes, color process plates, wood mounts and art productions is subject to tax when sold to users or consumers. The listed articles do not become an integral or component part of m…

213.6(1) The sales price from a layaway sale is subject to tax. A layaway sale involves two separate and distinct contracts. Under the first contract, the customer and the retailer enter into an agreement to give the customer an option to purchase a certain item of tangible perso…

213.7(1) The sales price of memorial stones is subject to tax. When the seller of a memorial stone agrees to erect a stone upon a foundation, the total sales price from the sale is taxable. Any separately itemized charge for engraving is part of the taxable sales price of a memor…

213.8(1) Pursuant to the provisions of any piece of chattel paper or any other document evidencing a creditor’s interest in tangible personal property, the sales price from the sale of tangible personal property at a public auction shall be taxable even if the sale is made by vir…

pets shall procure a permit and report tax on the sales price from the sale of such pets. This rule is intended to implement Iowa Code sections 423.1(54) and 423.2(1). [ARC 8158C, IAB 7/24/24, effective 8/28/24]

Example 1: A breeding service purchases a prize bull from a farmer. At the time of sale, the intent of the purchaser is to use the bull for breeding other cattle. The sale of the bull is exempt from tax even though three years later the breeding service sells the bull to a meat p…

attached to a self-propelled implement of husbandry. The sales price from the sale of farm machinery and equipment directly and primarily used in production of agricultural products and certain items used in agricultural production that are attached to or towed by a self-propelle…

for seed inoculations is exempt from sales tax. All forms of inoculation, whether for promotion of better growth and healthier plants or for the prevention or cure of plant mildew or disease of seeds and bulbs, are intended for the same general purpose and are therefore exempt. T…

214.12(1) Definitions. For purposes of this rule, the following definitions apply: “Aquaculture” means the same as defined in rule 701—200.1(423). “Fuel” includes electricity. “Implement of husbandry” means the same as defined in paragraph 214.1(3)“j.” “Livestock” means the same …

farmers who are purchasing water for household use, sanitation, swimming pools, or other personal use is subject to sales tax. The sales price from the sale of water sold to farmers and others and used directly as drinking water for livestock production (including the production …

and turkey poults is subject to tax. If sale of domestic poultry is for breeding, rule 701—214.7(423) provides information. When pullets and poults are sold for production purposes, the sales price from the sale is exempt from tax. This rule is intended to implement Iowa Code sec…

garden product by the producer thereof ordinarily constitutes a sale for resale, processing, or human consumption and is exempt from tax. In order to sell tangible personal property not otherwise exempt to ultimate consumers or users, farmers shall hold a permit and collect and r…

of feed for any form of animal life when the product of the animals constitutes food for human consumption is exempt from tax. The sales price from the sale of feed sold for consumption by pets is subject to tax. The sales price from the sale of antibiotics that are administered …

production. 214.17(1) The sales price from the sale of farm machinery, equipment, and replacement parts used in livestock or dairy production is exempt from sales and use tax. 214.17(2) Definitions and special provisions. For purposes of this rule, the following definitions and s…

ornamental, and vegetable plants. 214.18(1) The sales price from the sale of machinery, equipment, and replacement parts used in the production of flowering, ornamental, and vegetable plants is exempt from sales and use tax. The production of flowering, ornamental, or vegetable p…

or attached to self-propelled machinery and equipment and that are directly and primarily used in flowering, ornamental, or vegetable plant production. 214.18(8) Fuel used in plant production is discussed in paragraph 214.12(2)“b.” 214.18(9) The sales price from the sale of water…

214.2(1) In general. Persons engaged in the business of repairing, restoring, or renovating implements, tools, machines, vehicles, or equipment used in the operation of farms, ranches, or acreages on which crops of all kinds are grown and on which livestock, poultry, or furbearin…