House Journal: Page 1567: Wednesday, April 30, 2003
3 SALES TAX
4 Sec. . NEW SECTION. 423.2 TAX IMPOSED.
5 1. There is imposed a tax of five percent upon the
6 sales price of all sales of tangible personal
7 property, consisting of goods, wares, or merchandise,
8 sold at retail in the state to consumers or users
9 except as otherwise provided in this subchapter.
10 a. For the purposes of this subchapter, sales of
11 the following services are treated as if they were
12 sales of tangible personal property:
13 (1) Sales of engraving, photography, retouching,
14 printing, and binding services.
15 (2) Sales of vulcanizing, recapping, and
16 retreading services.
17 (3) Sales of prepaid telephone calling cards and
18 prepaid authorization numbers.
19 (4) Sales of optional service or warranty
20 contracts, except residential service contracts
21 regulated under chapter 523C, which provide for the
22 furnishing of labor and materials and require the
23 furnishing of any taxable service enumerated under
24 this section. The sales price is subject to tax even
25 if some of the services furnished are not enumerated
26 under this section. Additional sales, services, or
27 use taxes shall not be levied on services, parts, or
28 labor provided under optional service or warranty
29 contracts which are subject to tax under this
30 subsection.
31 If the optional service or warranty contract is a
32 computer software maintenance or support service
33 contract and there is no separately stated fee for the
34 taxable personal property or for the nontaxable
35 service, the tax imposed by this subsection shall be
36 imposed on fifty percent of the sales price from the
37 sale of such contract. If the contract provides for
38 technical support services only, no tax shall be
39 imposed under this subsection. The provisions of this
40 subparagraph (4) also apply to the use tax.
41 (5) Renting of rooms, apartments, or sleeping
42 quarters in a hotel, motel, inn, public lodging house,
43 rooming house, mobile home which is tangible personal
44 property, or tourist court, or in any place where
45 sleeping accommodations are furnished to transient
46 guests for rent, whether with or without meals.
47 "Renting" and "rent" include any kind of direct or
48 indirect charge for such rooms, apartments, or
49 sleeping quarters, or their use. However, the tax
50 does not apply to the sales price from the renting of
Page 10
1 a room, apartment, or sleeping quarters while rented
© 2003 Cornell College and
League of Women Voters of Iowa
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