House Journal: Page 1568: Wednesday, April 30, 2003
2 by the same person for a period of more than thirty-
3 one consecutive days.
4 b. Sales of building materials, supplies, and
5 equipment to owners, contractors, subcontractors, or
6 builders for the erection of buildings or the
7 alteration, repair, or improvement of real property
8 are retail sales of tangible personal property in
9 whatever quantity sold. Where the owner, contractor,
10 subcontractor, or builder is also a retailer holding a
11 retail sales tax permit and transacting retail sales
12 of building materials, supplies, and equipment, the
13 person shall purchase such items of tangible personal
14 property without liability for the tax if such
15 property will be subject to the tax at the time of
16 resale or at the time it is withdrawn from inventory
17 for construction purposes. The sales tax shall be due
18 in the reporting period when the materials, supplies,
19 and equipment are withdrawn from inventory for
20 construction purposes or when sold at retail. The tax
21 shall not be due when materials are withdrawn from
22 inventory for use in construction outside of Iowa and
23 the tax shall not apply to tangible personal property
24 purchased and consumed by the manufacturer as building
25 materials in the performance by the manufacturer or
26 its subcontractor of construction outside of Iowa.
27 The sale of carpeting is not a sale of building
28 materials. The sale of carpeting to owners,
29 contractors, subcontractors, or builders shall be
30 treated as the sale of ordinary tangible personal
31 property and subject to the tax imposed under this
32 subsection and the use tax.
33 c. The use within this state of tangible personal
34 property by the manufacturer thereof, as building
35 materials, supplies, or equipment, in the performance
36 of construction contracts in Iowa, shall, for the
37 purpose of this subchapter, be construed as a sale at
38 retail of tangible personal property by the
39 manufacturer who shall be deemed to be the consumer of
40 such tangible personal property. The tax shall be
41 computed upon the cost to the manufacturer of the
42 fabrication or production of the tangible personal
43 property.
44 2. A tax of five percent is imposed upon the sales
45 price of the sale or furnishing of gas, electricity,
46 water, heat, pay television service, and communication
47 service, including the sales price from such sales by
48 any municipal corporation or joint water utility
49 furnishing gas, electricity, water, heat, pay
50 television service, and communication service to the
© 2003 Cornell College and
League of Women Voters of Iowa
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