1. There is imposed a tax of six percent upon the sales price of all sales of tangible personal property, sold at retail in the
state to consumers or users except as otherwise provided in this subchapter. a. For the purposes of this subchapter, sales of the following services are treated as if they were sales of tangible personal property: (1) Sales of engraving, printing, and binding services.
(2) Sales of vulcanizing, recapping, and retreading services.
(3) Sales of prepaid calling services and prepaid wireless calling services.
(4) Sales of optional service or warranty contracts, except residential service contracts regulated under chapter 523C, which provide for the furnishing of labor and materials and require the furnishing of any taxable service enumerated under
this section. The sales price is subject to tax even if some of the services furnished are not enumerated under this section. Additional sales, services, or use taxes shall not be levied on services, parts, or labor provided under optional service
or warranty contracts which are subject to tax under this subsection.
(5) Sales of optional service or warranty contracts for computer software maintenance or support services. (a) If a service or warranty contract does not specify a fee amount for nontaxable services or taxable personal property, the
tax imposed pursuant to this section shall be imposed upon an amount equal to the sales price of the contract.
(b) If a service or warranty contract provides only for technical support services, no tax shall be imposed pursuant to this section.
(6) Subparagraphs (4) and (5) shall also apply to the use tax imposed under section 423.5.
b. Sales of building materials, supplies, and equipment to owners, contractors, subcontractors, or builders for the erection
of buildings or the alteration, repair, or improvement of real property are retail sales of tangible personal property in
whatever quantity sold. Where the owner, contractor, subcontractor, or builder is also a retailer holding a sales or use tax
permit and transacting retail sales of building materials, supplies, and equipment, the person shall purchase such items of
tangible personal property without liability for the tax if such property will be subject to the tax at the time of resale
or at the time it is withdrawn from inventory for construction purposes. The sales tax shall be due in the reporting period
when the materials, supplies, and equipment are withdrawn from inventory for construction purposes or when sold at retail.
The tax shall not be due when materials are withdrawn from inventory for use in construction outside of Iowa and the tax shall
not apply to tangible personal property purchased and consumed by the manufacturer as building materials in the performance
by the manufacturer or its subcontractor of construction outside of Iowa. The sale of carpeting is not a sale of building
materials. The sale of carpeting to owners, contractors, subcontractors, or builders shall be treated as the sale of ordinary
tangible personal property and subject to the tax imposed under this subsection and the use tax.
c. The use within this state of tangible personal property by the manufacturer thereof, as building materials, supplies, or equipment,
in the performance of construction contracts in Iowa, shall, for the purpose of this subchapter, be construed as a sale at retail of tangible personal property by the manufacturer who shall be deemed to be the consumer
of such tangible personal property. The tax shall be computed upon the cost to the manufacturer of the fabrication or production
of the tangible personal property.
2. A tax of six percent is imposed upon the sales price of the sale or furnishing of gas, electricity, water, heat, pay television
service, and communication service, including the sales price from such sales by any municipal corporation or joint water
utility furnishing gas, electricity, water, heat, pay television service, and communication service to the public in its proprietary
capacity, except as otherwise provided in this subchapter, when sold at retail in the state to consumers or users.
3. A tax of six percent is imposed upon the sales price of all sales of tickets or admissions to places of amusement, fairs,
and athletic events except those of elementary and secondary educational institutions. A tax of six percent is imposed on
the sales price of an entry fee or like charge imposed solely for the privilege of participating in an activity at a place
of amusement, fair, or athletic event unless the sales price of tickets or admissions charges for observing the same activity
are taxable under this subchapter. A tax of six percent is imposed upon that part of private club membership fees or charges paid for the privilege of participating
in any athletic sports provided club members.
4. a. A tax of six percent is imposed upon the sales price derived from the operation of all forms of amusement devices and games
of skill, games of chance, raffles, and bingo games as defined in chapter 99B, and card game tournaments conducted under section 99B.27, that are operated or conducted within the state, the tax to be collected from the operator in the same manner as for the
collection of taxes upon the sales price of tickets or admission as provided in this section. Nothing in this subsection shall legalize any games of skill or chance or slot-operated devices which are now prohibited by law. b. The tax imposed under this subsection covers the total amount from the operation of games of skill, games of chance, raffles, and bingo games as defined in chapter 99B, card game tournaments conducted under section 99B.27, and musical devices, weighing machines, shooting galleries, billiard and pool tables, bowling alleys, pinball machines,
slot-operated devices selling merchandise not subject to the general sales taxes and on the total amount from devices or systems
where prizes are in any manner awarded to patrons and upon the receipts from fees charged for participation in any game or
other form of amusement, and generally upon the sales price from any source of amusement operated for profit, not specified
in this section, and upon the sales price from which tax is not collected for tickets or admission, but tax shall not be imposed upon any
activity exempt from sales tax under section 423.3, subsection 78. Every person receiving any sales price from the sources described in this section is subject to all provisions of this subchapter relating to retail sales tax and other provisions of this chapter as applicable.
5. There is imposed a tax of six percent upon the sales price from the furnishing of services as defined in section 423.1.
6. The sales price of any of the following enumerated services is subject to the tax imposed by subsection 5: a. Alteration and garment repair.
b. Armored car.
c. Vehicle repair.
d. Battery, tire, and allied.
e. Investment counseling.
f. Service charges of all financial institutions. For the purposes of this paragraph, “financial institutions” means all national banks, federally chartered savings and loan associations, federally chartered savings banks, federally
chartered credit unions, banks organized under chapter 524, credit unions organized under chapter 533, and all banks, savings banks, credit unions, and savings and loan associations chartered or otherwise created under the
laws of any state and doing business in Iowa.
g. Barber and beauty.
h. Boat repair.
i. Vehicle wash and wax.
j. Campgrounds.
k. Carpentry repair and installation.
l. Roof, shingle, and glass repair.
m. Dance schools and dance studios.
n. Dating services.
o. Dry cleaning, pressing, dyeing, and laundering excluding the use of self-pay washers and dryers.
p. Electrical and electronic repair and installation.
q. Excavating and grading.
r. Farm implement repair of all kinds.
s. Flying service.
t. Furniture, rug, carpet, and upholstery repair and cleaning.
u. Fur storage and repair.
v. Golf and country clubs and all commercial recreation.
w. Gun and camera repair.
x. House and building moving.
y. Household appliance, television, and radio repair.
z. Janitorial and building maintenance or cleaning.
aa. Jewelry and watch repair.
ab. Lawn care, landscaping, and tree trimming and removal.
ac. Personal transportation service, including but not limited to taxis, driver service, ride sharing service, rides for hire,
and limousine service.
ad. Machine operator.
ae. Machine repair of all kinds.
af. Motor repair.
ag. Motorcycle, scooter, and bicycle repair.
ah. Oilers and lubricators.
ai. Office and business machine repair.
aj. Painting, papering, and interior decorating.
ak. Parking facilities.
al. Pay television, including but not limited to streaming video, video on-demand, and pay-per-view.
am. Pet grooming.
an. Pipe fitting and plumbing.
ao. Wood preparation.
ap. Executive search agencies.
aq. Private employment agencies, excluding services for placing a person in employment where the principal place of employment
of that person is to be located outside of the state.
ar. Reflexology.
as. Security and detective services, excluding private security and detective services furnished by a peace officer with the knowledge
and consent of the chief executive officer of the peace officer’s law enforcement agency.
at. Sewage services for nonresidential commercial operations.
au. Sewing and stitching.
av. Shoe repair and shoeshine.
aw. Sign construction and installation.
ax. Storage of household goods, mini-storage, and warehousing of raw agricultural products.
ay. Swimming pool cleaning and maintenance.
az. Tanning beds or salons.
ba. Taxidermy services.
bb. Telephone answering service.
bc. Test laboratories, including mobile testing laboratories and field testing by testing laboratories, and excluding tests on
humans or animals and excluding environmental testing services.
bd. Termite, bug, roach, and pest eradicators.
be. Tin and sheet metal repair.
bf. Transportation service consisting of the rental of recreational vehicles or recreational boats, or the rental of vehicles
subject to registration which are registered for a gross weight of thirteen tons or less for a period of sixty days or less,
or the rental of aircraft for a period of sixty days or less.
bg. Turkish baths, massage, and reducing salons, excluding services provided by massage therapists licensed under chapter 152C.
bh. Water conditioning and softening.
bi. Weighing.
bj. Welding.
bk. Well drilling.
bl. Wrapping, packing, and packaging of merchandise other than processed meat, fish, fowl, and vegetables.
bm. Wrecking service.
bn. Wrecker and towing.
bo. Photography.
bp. Retouching.
bq. Storage of tangible or electronic files, documents, or other records.
br. Information services.
bs. Services arising from or related to installing, maintaining, servicing, repairing, operating, upgrading, or enhancing either
specified digital products or software sold as tangible personal property.
bt. Video game services and tournaments.
bu. Software as a service.
7. a. A tax of six percent is imposed upon the sales price from the sales, furnishing, or service of solid waste collection and
disposal service. (1) For purposes of this subsection, “solid waste” means garbage, refuse, sludge from a water supply treatment plant or air contaminant treatment facility, and other discarded
waste materials and sludges, in solid, semisolid, liquid, or contained gaseous form, resulting from nonresidential commercial
operations, but does not include auto hulks; street sweepings; ash; construction debris; mining waste; trees; tires; lead
acid batteries; used oil; hazardous waste; animal waste used as fertilizer; earthen fill, boulders, or rock; foundry sand
used for daily cover at a sanitary landfill; sewage sludge; solid or dissolved material in domestic sewage or other common
pollutants in water resources, such as silt, dissolved or suspended solids in industrial wastewater effluents or discharges
which are point sources subject to permits under section 402 of the federal Water Pollution Control Act, or dissolved materials
in irrigation return flows; or source, special nuclear, or by-product material defined by the federal Atomic Energy Act of
1954.
(2) A recycling facility that separates or processes recyclable materials and that reduces the volume of the waste by at least
eighty-five percent is exempt from the tax imposed by this subsection if the waste exempted is collected and disposed of separately from other solid waste. b. A person who transports solid waste generated by that person or another person without compensation shall pay the tax imposed
by this subsection at the collection or disposal facility based on the disposal charge or tipping fee. However, the costs of a service or portion
of a service to collect and manage recyclable materials separated from solid waste by the waste generator are exempt from
the tax imposed by this subsection.
8. a. A tax of six percent is imposed on the sales price from sales of bundled transactions. For the purposes of this subsection, a “bundled transaction” is the retail sale of two or more distinct and identifiable products, except real property and services to real property,
which are sold for one nonitemized price. A “bundled transaction” does not include the sale of any products in which the sales price varies, or is negotiable, based on the selection by the
purchaser of the products included in the transaction. b. “Distinct and identifiable products” does not include any of the following: (1) Packaging or other materials that accompany the retail sale of the products and are incidental or immaterial to the retail
sale of the products.
(2) A product provided free of charge with the required purchase of another product. A product is “provided free of charge” if the sales price of the product purchased does not vary depending on the inclusion of the product which is provided free
of charge.
(3) Items included in the definition of “sales price” pursuant to section 423.1.
c. “One nonitemized price” does not include a price that is separately identified by product on binding sales or other supporting sales-related documentation
made available to the customer in paper or electronic form.
d. A transaction that otherwise meets the definition of “bundled transaction” as defined in this subsection is not a bundled transaction if it is any of the following: (1) The retail sale of tangible personal property or specified digital product and a service, where the tangible personal property
or specified digital product is essential to the use of the service, and is provided exclusively in connection with the service,
and the true object of the transaction is the service.
(2) The retail sale of services where one service is provided that is essential to the use or receipt of a second service and
the first service is provided exclusively in connection with the second service and the true object of the transaction is
the second service.
(3) (a) A transaction that includes taxable products and nontaxable products and the purchase price or sales price of the taxable
products is de minimis. (b) For purposes of this subparagraph, “de minimis” means the seller’s purchase or sales price of the taxable products is ten percent or less of the total purchase price or
sales price of the bundled products. Sellers shall use either the purchase price or the sale price of the products to determine
if the taxable products are de minimis. Sellers may not use a combination of the purchase price and sales price of the products
to determine if the taxable products are de minimis.
(4) The retail sale of exempt tangible personal property and taxable tangible personal property where all of the following apply: (a) The transaction includes food and food ingredients, drugs, durable medical equipment, mobility enhancing equipment, prosthetic
devices, or medical supplies.
(b) The seller’s purchase price or sales price of the taxable tangible personal property is fifty percent or less of the total
purchase price or sales price of the bundled tangible personal property. Sellers may not use a combination of the purchase
price and sales price of the tangible personal property when making the fifty percent determination for a transaction.
9. A tax of six percent is imposed upon the sales price from any mobile telecommunications service, including all paging services,
that this state is allowed to tax pursuant to the provisions of the federal Mobile Telecommunications Sourcing Act, Pub. L. No. 106-252, 4 U.S.C. §116 et seq. For purposes of this subsection, taxes on mobile telecommunications service, as defined under the federal Mobile Telecommunications Sourcing Act that are deemed to be provided by the customer’s home service provider, shall be paid to the taxing jurisdiction whose territorial
limits encompass the customer’s place of primary use, regardless of where the mobile telecommunications service originates,
terminates, or passes through and shall in all other respects be taxed in conformity with the federal Mobile Telecommunications Sourcing Act. All other provisions of the federal Mobile Telecommunications Sourcing Act are adopted by the state of Iowa and incorporated into this subsection by reference. With respect to mobile telecommunications service under the federal Mobile Telecommunications Sourcing Act, the director shall, if requested, enter into agreements consistent with the provisions of the federal Act.
10. a. A tax of six percent is imposed on the sales price of specified digital products sold at retail in the state. The tax applies
whether the purchaser obtains permanent use or less than permanent use of the specified digital product, whether the sale
is conditioned or not conditioned upon continued payment from the purchaser, and whether the sale is on a subscription basis
or is not on a subscription basis. b. The sale of a digital code that may be used to obtain or access a specified digital product shall be taxed in the same manner
as the specified digital product. For purposes of this paragraph, “digital code” means a method that permits a purchaser to obtain or access at a later date a specified digital product.
11. All taxes collected under this chapter by a retailer or any individual are deemed to be held in trust for the state of Iowa.
12. The sales tax rate of six percent is reduced to five percent on January 1, 2051.
2003 Acts, 1st Ex, ch 2, §95, 205; 2004 Acts, ch 1073, §24, 25; 2005 Acts, ch 140, §5, 18, 43; 2006 Acts, ch 1158, §70, 80; 2007 Acts, ch 119, §6; 2007 Acts, ch 186, §20; 2008 Acts, ch 1134, §4 – 10, 36; 2010 Acts, ch 1145, §8, 9, 17; 2011 Acts, ch 25, §143; 2011 Acts, ch 92, §5; 2012 Acts, ch 1017, §84; 2012 Acts, ch 1094, §17, 18; 2012 Acts, ch 1098, §2; 2013 Acts, ch 70, §11; 2013 Acts, ch 119, §9; 2013 Acts, ch 140, §126; 2014 Acts, ch 1102, §1; 2014 Acts, ch 1110, §4; 2014 Acts, ch 1127, §1, 3; 2015 Acts, ch 114, §1; 2015 Acts, ch 120, §21 – 25; 2016 Acts, ch 1117, §2, 3; 2018 Acts, ch 1146, §1, 3, 4; 2018 Acts, ch 1161, §169 – 173, 229 – 231; 2019 Acts, ch 152, §20, 21; 2019 Acts, ch 166, §7; 2020 Acts, ch 1118, §36, 37; 2021 Acts, ch 86, §52; 2022 Acts, ch 1138, §6
Referred to in
§15J.2, 15J.4, 28A.17, 29C.15, 99B.27, 321.105A, 328.26, 418.1, 418.11, 418.15, 423.1, 423.2A, 423.3, 423.4, 423.5, 423.6, 423.14A, 423.22, 423.26, 423.30, 423.34, 423.36, 423.40, 423.41, 423C.3
There is exempted from the provisions of
this subchapter and from the computation of the amount of tax imposed by it the following:
1. The sales price from sales of tangible personal property, specified digital products, and services furnished which this state
is prohibited from taxing under the Constitution or laws of the United States or under the Constitution of this state.
2. The sales price of sales for resale of tangible personal property or taxable services, or for resale of tangible personal
property in connection with the furnishing of taxable services except for the purchase of tangible personal property, the
leasing or rental of which is exempted from tax by subsection 49.
3. The sales price of agricultural breeding livestock and domesticated fowl.
3A. The sales price from the sale of a commercial recreation service offering the opportunity to hunt a preserve whitetail as
defined in section 484C.1 if the sale occurred between July 1, 2005, and December 31, 2015.
4. The sales price of commercial fertilizer.
5. a. The sales price of agricultural limestone, herbicide, pesticide, insecticide, including adjuvants, surfactants, and other
products directly related to the application enhancement of those products, food, medication, or agricultural drain tile,
including installation of agricultural drain tile, any of which are to be used in disease control, weed control, insect control,
or health promotion of plants or livestock produced as part of agricultural production for market. b. The following enumerated materials associated with the installation of agricultural drain tile which is exempt pursuant to
paragraph “a” shall also be exempt under paragraph “a”: (1) Tile intakes.
(2) Outlet pipes and guards.
(3) Aluminum and gabion structures.
(4) Erosion control fabric.
(5) Water control structures.
(6) Miscellaneous tile fittings.
6. The sales price of tangible personal property which will be consumed as fuel in creating heat, power, or steam for grain drying,
or for providing heat or cooling for livestock buildings or for greenhouses or buildings or parts of buildings dedicated to
the production of flowering, ornamental, or vegetable plants intended for sale in the ordinary course of business, or for
use in cultivation of agricultural products by aquaculture, or in implements of husbandry engaged in agricultural production.
7. The sales price of services furnished by specialized flying implements of husbandry used for agricultural aerial spraying.
8. a. The sales price exclusive of services of farm machinery and equipment, including auxiliary attachments which improve the performance,
safety, operation, or efficiency of the machinery and equipment and replacement parts, if the following conditions are met: (1) The farm machinery and equipment shall be directly and primarily used in production of agricultural products.
(2) The farm machinery and equipment shall constitute self-propelled implements or implements customarily drawn or attached to
self-propelled implements or the farm machinery or equipment is a grain dryer.
(3) The replacement part is used in any repair or reconstruction necessary to the farm machinery’s or equipment’s exempt use in
the production of agricultural products.
b. Vehicles subject to registration, as defined in section 423.1, or replacement parts for such vehicles, are not eligible for this exemption.
c. For purposes of this subsection, the following items are exempt under paragraph “a” when used in agricultural production: (1) A snow blower that is to be attached to a self-propelled implement of husbandry.
(2) A rear-mounted or front-mounted blade that is to be attached to or towed by a self-propelled implement of husbandry.
(3) A rotary cutter that is to be attached to a self-propelled implement of husbandry.
d. (1) For purposes of this subsection, the following items are exempt under paragraph “a” when used primarily in agricultural production: (a) A diesel fuel trailer, regardless of the vehicle to which it is to be attached.
(b) A seed tender, regardless of the vehicle to which it is to be attached.
(c) An all-terrain vehicle.
(d) An off-road utility vehicle.
(2) For purposes of this paragraph: (a) “All-terrain vehicle” means the same as defined in section 321I.1.
(b) “Fuel trailer” means a trailer that holds dyed diesel fuel or diesel exhaust fluid and that is used to transport such fuel or fluid to a
self-propelled implement of husbandry.
(c) “Off-road utility vehicle” means the same as defined in section 321I.1.
(d) “Seed tender” means a trailer that holds seed and that is used to transport seed to an implement of husbandry and load seed into an implement
of husbandry.
9. The sales price of wood chips, sawdust, hay, straw, paper, or other materials used for bedding in the production of agricultural
livestock or fowl.
10. The sales price of gas, electricity, water, or heat to be used in implements of husbandry engaged in agricultural production.
11. The sales price exclusive of services of farm machinery and equipment, including auxiliary attachments which improve the performance,
safety, operation, or efficiency of the machinery and equipment, and including auger systems, curtains and curtain systems,
drip systems, fan and fan systems, shutters, inlets and shutter or inlet systems, and refrigerators, and replacement parts,
if all of the following conditions are met: a. The implement, machinery, or equipment is directly and primarily used in livestock or dairy production, aquaculture production,
or the production of flowering, ornamental, or vegetable plants.
b. The implement is not a self-propelled implement or implement customarily drawn or attached to self-propelled implements.
c. The replacement part is used in any repair or reconstruction necessary to the farm machinery’s or equipment’s exempt use in
livestock or dairy production, aquaculture production, or the production of flowering, ornamental, or vegetable plants.
12. The sales price, exclusive of services, from sales of irrigation equipment used in farming operations.
13. The sales price from the sale of irrigation equipment, whether installed above or below ground, to a contractor or farmer
if the equipment will be primarily used in agricultural operations.
14. The sales price from the sales of horses, commonly known as draft horses, when purchased for use and so used as draft horses.
15. The sales price from the sale of property which is a container, label, carton, pallet, packing case, wrapping, baling wire,
twine, bag, bottle, shipping case, or other similar article or receptacle sold for use in agricultural, livestock, or dairy
production.
16. The sales price from the sale of feed and feed supplements and additives when used for consumption by farm deer or bison.
16A. a. The sales price from the sale of a grain bin, including material or replacement parts used to construct or repair a grain
bin. b. For purposes of this subsection, “grain bin” means property that is vented and covered with corrugated metal or similar material, and that is primarily used to hold loose
grain for drying or storage.
17. The sales price of all tangible personal property, specified digital products, or services, used for educational purposes
sold to any private nonprofit educational institution in this state. For the purpose of this subsection, “educational institution” means an institution which primarily functions as a school, college, or university with students, faculty, and an established
curriculum. The faculty of an educational institution must be associated with the institution and the curriculum must include
basic courses which are offered every year. “Educational institution” includes an institution primarily functioning as a library.
18. The sales price of tangible personal property or specified digital products sold, or of services furnished, to the following
nonprofit corporations: a. Residential care facilities and intermediate care facilities for persons with an intellectual disability and residential care
facilities for persons with mental illness licensed by the department of inspections and appeals under chapter 135C.
c. Rehabilitation facilities that provide accredited rehabilitation services to persons with disabilities which are accredited
by the commission on accreditation of rehabilitation facilities or the council on quality and leadership and adult day care
services approved for reimbursement by the state department of human services.
d. Community mental health centers accredited by the department of human services pursuant to chapter 225C.
e. Health centers as defined in 42 U.S.C. §254b.
f. Home and community-based services providers certified to offer Medicaid waiver services by the department of human services
that are any of the following: (1) Health and disability waiver service providers, described in 441 IAC 77.30.
(3) Elderly waiver service providers, described in 441 IAC 77.33.
(4) AIDS/HIV waiver service providers, described in 441 IAC 77.34.
(5) Federally qualified health centers, described in 441 IAC 77.35.
(6) Intellectual disabilities waiver service providers, described in 441 IAC 77.37.
(7) Brain injury waiver service providers, described in 441 IAC 77.39.
g. Substance abuse treatment or prevention programs that receive block grant funding from the Iowa department of public health.
19. The sales price of tangible personal property sold to a nonprofit organization which was organized for the purpose of lending
the tangible personal property to the general public for use by them for nonprofit purposes.
20. The sales price of tangible personal property or specified digital products sold, or of services furnished, to nonprofit legal
aid organizations.
21. The sales price of tangible personal property, of specified digital products, or of services, used for educational, scientific,
historic preservation, or aesthetic purpose sold to a nonprofit private museum.
22. The sales price from sales of tangible personal property, of specified digital products, or from services furnished, to a
nonprofit private art center to be used in the operation of the art center.
23. The sales price of tangible personal property or specified digital products sold, or of services furnished, by a fair organized
under chapter 174.
24. The sales price from services furnished by the notification center established pursuant to section 480.3, and the vendor selected pursuant to section 480.3 to provide the notification service.
25. The sales price of food and beverages sold for human consumption by a nonprofit organization which principally promotes a
food or beverage product for human consumption produced, grown, or raised in this state and whose income is exempt from federal
taxation under section 501(c) of the Internal Revenue Code.
26. The sales price of tangible personal property or specified digital products sold, or of services furnished, to a statewide
nonprofit organ procurement organization, as defined in section 142C.2.
26A. a. The sales price of tangible personal property sold or of test laboratory services furnished, if such tangible personal property
or test laboratory services are sold or furnished to a nonprofit blood center that is registered by the federal food and drug
administration, and the tangible personal property or test laboratory services are directly and primarily used in the processing
of human blood. b. As used in this subsection, “processing” means the same as defined in subsection 47, except that for purposes of the definition of “processing” used in this subsection, a “manufacturer” shall be construed to include a nonprofit blood center.
27. The sales price of tangible personal property or specified digital products sold, or of services furnished, to a nonprofit
hospital licensed pursuant to chapter 135B to be used in the operation of the hospital.
28. The sales price of tangible personal property or specified digital products sold, or of services furnished, to a freestanding
nonprofit hospice facility which operates a hospice program as defined in 42 C.F.R. ch. IV, §418.3, which property or services are to be used in the hospice program.
29. Reserved.
30. The sales price of livestock ear tags sold by a nonprofit organization whose income is exempt from federal taxation under
section 501(c)(6) of the Internal Revenue Code where the proceeds are used in bovine research programs selected or approved by such organization.
31. The sales price of tangible personal property or specified digital products sold to and of services furnished to a tribal
government as defined in section 216A.161, or the sales price of tangible personal property or specified digital products sold to and of services furnished, and used
for public purposes sold to a tax-certifying or tax-levying body of the state or a governmental subdivision of the state,
including the following: regional transit systems, as defined in section 324A.1; the state board of regents; department of human services; state department of transportation; any municipally owned solid
waste facility which sells all or part of its processed waste as fuel to a municipally owned public utility; and all divisions,
boards, commissions, agencies, or instrumentalities of state, federal, county, municipal, or tribal government which have
no earnings going to the benefit of an equity investor or stockholder, except any of the following: a. The sales price of tangible personal property or specified digital products sold to, or of services furnished, and used by
or in connection with the operation of any municipally owned public utility engaged in selling gas, electricity, heat, pay
television service, or communication service to the general public.
b. The sales price of furnishing of sewage services to a county or municipality on behalf of nonresidential commercial operations.
c. The furnishing of solid waste collection and disposal service to a county or municipality on behalf of nonresidential commercial
operations located within the county or municipality.
32. The sales price of tangible personal property or specified digital products sold, or of services furnished, by a county or
city. This exemption does not apply to any of the following: a. The tax specifically imposed under section 423.2 on the sales price from sales or furnishing of gas, electricity, water, heat, pay television service, or communication service
to the public by a municipal corporation in its proprietary capacity.
b. The sale or furnishing of solid waste collection and disposal service to nonresidential commercial operations.
c. The sale or furnishing of sewage service for nonresidential commercial operations.
d. Fees paid to cities and counties for the privilege of participating in any athletic sports.
33. a. The sales price of mementos and other items relating to Iowa history and historic sites, the general assembly, and the state
capitol, sold by the legislative services agency and its legislative information office on the premises of property under
the control of the legislative council, at the state capitol, and on other state property. b. The legislative services agency is not a retailer under this chapter and the sale of items or provision of services by the legislative services agency is not a retail sale under this chapter and is exempt from the sales tax.
34. The sales price from sales of mementos and other items relating to Iowa history and historic sites by the department of cultural
affairs on the premises of property under its control and at the state capitol.
35. The sales price from sales or services furnished by the state fair organized under chapter 173.
36. The sales price from sales of tangible personal property or specified digital products or of the sale or furnishing of electrical
energy, natural or artificial gas, or communication service to another state or political subdivision of another state if
the other state provides a similar reciprocal exemption for this state and political subdivision of this state.
37. The sales price of services on or connected with new construction, reconstruction, alteration, expansion, remodeling, or the
services of a general building contractor, architect, or engineer. The exemption in this subsection also applies to the sales price on the lease or rental of all machinery, equipment, and replacement parts directly and primarily
used by owners, contractors, subcontractors, and builders for new construction, reconstruction, alteration, expansion, or
remodeling of real property or structures and of all machinery, equipment, and replacement parts which improve the performance,
safety, operation, or efficiency of the machinery, equipment, and replacement parts so used.
38. The sales price from the sale of building materials, supplies, or equipment sold to rural water districts organized under
chapter 504 as provided in chapter 357A and used for the construction of facilities of a rural water district.
39. The sales price from “casual sales”. a. “Casual sales” means: (1) Sales of tangible personal property or specified digital products, or the furnishing of services, of a nonrecurring nature,
by the owner, if the seller, at the time of the sale, is not engaged for profit in the business of selling tangible personal
property, specified digital products, or services taxed under section 423.2.
(2) The sale of all or substantially all of the tangible personal property, or specified digital products, or services held or
used by a seller in the course of the seller’s trade or business for which the seller is required to hold a sales or use tax
permit when the seller sells or otherwise transfers the trade or business to another person who shall engage in a similar
trade or business.
(3) Notwithstanding subparagraph (1), the sale, furnishing, or performance of a service that is of a recurring nature by the owner
if, at the time of the sale, all of the following apply: (a) The seller is not engaged for profit in the business of the selling, furnishing, or performance of services taxed under section 423.2. For purposes of this subparagraph, the fact of the recurring nature of selling, furnishing, or performance of services does
not constitute by itself engaging for profit in the business of selling, furnishing, or performance of services.
(b) The owner of the business is the only person performing the service.
(c) The owner of the business is a full-time student.
(d) The total gross receipts from the sales, furnishing, or performance of services during the calendar year does not exceed five
thousand dollars.
b. The exemption under this subsection does not apply to vehicles subject to registration, all-terrain vehicles, snowmobiles, off-road motorcycles, off-road utility
vehicles, aircraft, or commercial or pleasure watercraft or water vessels.
c. The exemption under this subsection does not apply to sales for which a person is required pursuant to section 423.14A to collect sales and use tax.
40. The sales price from the sale of automotive fluids to a retailer to be used either in providing a service which includes the
installation or application of the fluids in or on a motor vehicle, which service is subject to section 423.2, subsection 6, or to be installed in or applied to a motor vehicle which the retailer intends to sell, which sale is subject to section
321.105A. For purposes of this subsection, automotive fluids are all those which are refined, manufactured, or otherwise processed and packaged for sale prior to their
installation in or application to a motor vehicle. They include but are not limited to motor oil and other lubricants, hydraulic
fluids, brake fluid, transmission fluid, sealants, undercoatings, antifreeze, and gasoline additives.
41. The sales price from the rental of motion picture films, video and audio tapes, video and audio discs, records, photos, copy,
scripts, or other media used for the purpose of transmitting that which can be seen, heard, or read, if either of the following
conditions are met: a. The lessee imposes a charge for the viewing of such media and the charge for the viewing is subject to taxation under this subchapter or is subject to use tax.
b. The lessee broadcasts the contents of such media for public viewing or listening.
42. The sales price from the sale of tangible personal property consisting of advertising material including paper to a person
in Iowa if that person or that person’s agent will, subsequent to the sale, send that advertising material outside this state
and the material is subsequently used solely outside of Iowa. For the purpose of this subsection, “advertising material” means any brochure, catalog, leaflet, flyer, order form, return envelope, or similar item used to promote sales of property
or services.
43. The sales price from the sale of property or of services performed on property which the retailer transfers to a carrier for
shipment to a point outside of Iowa, places in the United States mail or parcel post directed to a point outside of Iowa,
or transports to a point outside of Iowa by means of the retailer’s own vehicles, and which is not thereafter returned to
a point within Iowa, except solely in the course of interstate commerce or transportation. This exemption shall not apply
if the purchaser, consumer, or their agent, other than a carrier, takes physical possession of the property in Iowa.
44. Reserved.
45. The sales price from the sale of property which is a container, label, carton, pallet, packing case, wrapping paper, twine,
bag, bottle, shipping case, or other similar article or receptacle sold to retailers or manufacturers for the purpose of packaging
or facilitating the transportation of tangible personal property sold at retail or transferred in association with the maintenance
or repair of fabric or clothing.
46. The sales price from sales to a printer or publisher of the following: acetate; anti-halation backing; antistatic spray;
back lining; base material used as a carrier for light sensitive emulsions; blankets; blow-ups; bronze powder; carbon tissue;
codas; color filters; color separations; contacts; continuous tone separations; creative art; custom dies and die cutting
materials; dampener sleeves; dampening solution; design and styling; diazo coating; dot etching; dot etching solutions; drawings;
drawsheets; driers; duplicate films or prints; electronically digitized images; electrotypes; end product of image modulation;
engravings; etch solutions; film; finished art or final art; fix; fixative spray; flats; flying pasters; foils; goldenrod
paper; gum; halftones; illustrations; ink; ink paste; keylines; lacquer; lasering images; layouts; lettering; line negatives
and positives; linotypes; lithographic offset plates; magnesium and zinc etchings; masking paper; masks; masters; mats; mat
service; metal toner; models and modeling; mylar; negatives; nonoffset spray; opaque film process paper; opaquing; padding
compound; paper stock; photographic materials: acids, plastic film, desensitizer emulsion, exposure chemicals, fix, developers, and paper; photography, day rate; photopolymer
coating; photographs; photostats; photo-display tape; phototypesetter materials; pH-indicator sticks; positives; press pack;
printing cylinders; printing plates, all types; process lettering; proof paper; proofs and proof processes, all types; pumice
powder; purchased author alterations; purchased composition; purchased phototypesetting; purchased stripping and pasteups;
red litho tape; reducers; roller covering; screen tints; sketches; stepped plates; stereotypes; strip types; substrate; tints;
tissue overlays; toners; transparencies; tympan; typesetting; typography; varnishes; veloxes; wood mounts; and any other items
used in a like capacity to any of the above enumerated items by the printer or publisher to complete a finished product for
sale at retail. Expendable tools and supplies which are not enumerated in this subsection are excluded from the exemption. “Printer” means that portion of a person’s business engaged in printing that completes a finished product for ultimate sale at retail
or means that portion of a person’s business used to complete a finished printed packaging material used to package a product
for ultimate sale at retail. “Printer” does not mean an in-house printer who prints or copyrights its own materials.
47. a. The sales price from 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,
if such items are any of the following: (1) Directly and primarily used in processing by a manufacturer.
(2) 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.
(3) Directly and primarily used in research and development of new products or processes of processing.
(4) Computers and computer peripherals used in processing or storage of data or information by an insurance company, financial
institution, or commercial enterprise.
(5) Directly and primarily used in recycling or reprocessing of waste products.
(6) 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.
b. The sales price from the sale of 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”, subparagraph (1), (2), (3), (5), or (6).
c. The sales price from the sale of the following shall not be exempt from the tax imposed by this subchapter: (1) Hand tools.
(2) Point-of-sale equipment, computers, and computer peripherals.
(3) The following within the scope of section 427A.1, subsection 1, paragraphs “h” and “i”: (a) Computers.
(b) Computer peripherals.
(c) Machinery.
(d) Equipment, including pollution control equipment.
(e) Replacement parts.
(f) Supplies.
(g) Materials used to construct or self-construct the following: (i) Computers.
(ii) Computer peripherals.
(iii) Machinery.
(iv) Equipment, including pollution control equipment.
(v) Replacement parts.
(vi) Supplies.
(4) Vehicles subject to registration, except vehicles subject to registration which are directly and primarily used in recycling
or reprocessing of waste products.
d. As used in this subsection: (1) “Commercial enterprise” means businesses and manufacturers conducted for profit, for-profit and nonprofit insurance companies, and for-profit and
nonprofit financial institutions, but excludes other nonprofits and professions and occupations.
(3) “Insurance company” means an insurer organized or operating under chapter 508, 514, 515, 518, 518A, 519, or 520, or authorized to do business in Iowa as an insurer or an insurance producer under chapter 522B.
(4) (a) “Manufacturer” means a business that primarily purchases, receives, or holds personal property of any description for the purpose of adding
to its value by a process of manufacturing with a view to selling the property for gain or profit. (b) “Manufacturer” includes contract manufacturers. A contract manufacturer is a manufacturer that otherwise falls within the definition of
manufacturer, except that a contract manufacturer does not sell the tangible personal property the contract manufacturer processes
on behalf of other manufacturers.
(c) “Manufacturer” does not include persons who are not commonly understood as manufacturers, including but not limited to persons primarily
engaged in any of the following activities: (i) Construction contracting.
(ii) Repairing tangible personal property or real property.
(iii) Providing health care.
(iv) Farming, including cultivating agricultural products and raising livestock.
(v) Transporting for hire.
(d) For purposes of this subparagraph: (i) “Business” means those businesses conducted for profit, but excludes professions and occupations and nonprofit organizations.
(ii) “Manufacturing” means those activities commonly understood within the ordinary meaning of the term, and shall include: (A) Refining.
(B) Purifying.
(C) Combining of different materials.
(D) Packing of meats.
(E) Activities subsequent to the extractive process of quarrying or mining, such as crushing, washing, sizing, or blending of
aggregate materials.
(iii) “Manufacturing” does not include activities occurring on premises primarily used to make retail sales.
(5) “Processing” means a series of operations in which materials are manufactured, refined, purified, created, combined, or transformed by
a manufacturer, ultimately into tangible personal property. Processing encompasses all activities commencing with the receipt
or producing of raw materials by the manufacturer and ending at the point products are delivered for shipment or transferred
from the manufacturer. Processing includes but is not limited to refinement or purification of materials; treatment of materials
to change their form, context, or condition; maintenance of the quality or integrity of materials, components, or products;
maintenance of environmental conditions necessary for materials, components, or products; quality control activities; and
construction of packaging and shipping devices, placement into shipping containers or any type of shipping devices or medium,
and the movement of materials, components, or products until shipment from the processor.
(6) “Receipt or producing of raw materials” means activities performed upon tangible personal property only. With respect to raw materials produced from or upon real
estate, the receipt or producing of raw materials is deemed to occur immediately following the severance of the raw materials
from the real estate.
(7) “Replacement part” means tangible personal property other than computers, computer peripherals, machinery, equipment, or supplies, regardless
of the cost or useful life of the tangible personal property, that meets all of the following conditions: (a) The tangible personal property replaces a component of a computer, computer peripheral, machinery, or equipment, which component
is capable of being separated from the computer, computer peripheral, machinery, or equipment.
(b) The tangible personal property performs the same or similar function as the component it replaced.
(c) The tangible personal property restores the computer, computer peripheral, machinery, or equipment to an operational condition,
or upgrades or improves the efficiency of the computer, computer peripheral, machinery, or equipment.
(8) “Supplies” means tangible personal property, other than computers, computer peripherals, machinery, equipment, or replacement parts,
that meets one of the following conditions: (a) The tangible personal property is to be connected to a computer, computer peripheral, machinery, or equipment and requires
regular replacement because the property is consumed or deteriorates during use, including but not limited to saw blades,
drill bits, filters, and other similar items with a short useful life.
(b) The tangible personal property is used in conjunction with a computer, computer peripheral, machinery, or equipment and is
specially designed for use in manufacturing specific products and may be used interchangeably and intermittently on a particular
computer, computer peripheral, machine, or piece of equipment, including but not limited to jigs, dies, tools, and other similar
items.
(c) The tangible personal property comes into physical contact with other tangible personal property used in processing and is
used to assist with or maintain conditions necessary for processing, including but not limited to cutting fluids, oils, coolants,
lubricants, and other similar items with a short useful life.
(d) The tangible personal property is directly and primarily used in an activity described in paragraph “a”, subparagraphs (1) through (6), including but not limited to prototype materials and testing materials.
47A. a. The sales price from the sale of central office equipment or transmission equipment primarily used by local exchange carriers
and competitive local exchange service providers; by franchised cable television operators, mutual companies, municipal utilities,
cooperatives, and companies furnishing communications services that are not subject to rate regulation as provided in chapter 476; by long distance companies as defined in section 477.10; or for a commercial mobile radio service as defined in 47 C.F.R. §20.3 in the furnishing of telecommunications services on a commercial basis. b. For the purposes of this subsection: (1) “Central office equipment” means equipment utilized in the initiating, processing, amplifying, switching, or monitoring of telecommunications services.
“Central office equipment” also includes ancillary equipment and apparatus which support, regulate, control, repair, test, or enable such equipment
to accomplish its function.
(2) “Competitive local exchange service provider” means any person, including a municipal utility, that provides local exchange services, other than a local exchange carrier
or a non-rate-regulated wireline provider of local exchange services under an authorized certificate of public convenience
and necessity within a specific geographic area described in maps filed with and approved by the Iowa utilities board as of
September 30, 1992.
(3) “Local exchange carrier” means any person that was the incumbent and historical rate-regulated wireline provider of local exchange services or any
successor to such person that provides local exchange services under an authorized certificate of public convenience and necessity
within a specific geographic area described in maps filed with and approved by the Iowa utilities board as of September 30,
1992.
(4) “Transmission equipment” means equipment utilized in the process of sending information from one location to another location. “Transmission equipment” also includes ancillary equipment and apparatus which support, regulate, control, repair, test, or enable such equipment
to accomplish its function.
48. The sales price from the furnishing of the design and installation of new industrial machinery or equipment, including electrical
and electronic installation.
49. a. The sales price from the sale of carbon dioxide in a liquid, solid, or gaseous form, electricity, steam, and other taxable
services and the lease or rental of tangible personal property when used by a manufacturer to primarily produce food or food
ingredients, including but not limited to treatment of material to change its form, context, or condition, in order to produce
the food or food ingredients, maintenance of quality or integrity of the food or food ingredients, changing or maintenance
of temperature levels necessary to avoid spoilage or to hold the food or food ingredients in marketable condition, maintenance
of environmental conditions necessary for the safe or efficient use of machinery and material used to produce the food or
food ingredients, sanitation and quality control activities, formation of packaging, placement into shipping containers, and
movement of the material or food or food ingredients until shipment from the building of manufacture. b. For purposes of this subsection, “food or food ingredients” means the same as “food and food ingredients” as defined in subsection 57, paragraph “d”, and includes tangible personal property that could be sold for ingestion or chewing by humans but is sold for another use.
50. The sales price of sales of electricity, steam, or any taxable service when purchased and used in the processing of tangible
personal property intended to be sold ultimately at retail or of any fuel which is consumed in creating power, heat, or steam
for processing or for generating electric current.
51. The sales price of tangible personal property sold for processing. Tangible personal property is sold for processing within
the meaning of this subsection only when it is intended that the property will, by means of fabrication, compounding, manufacturing, or germination, become
an integral part of other tangible personal property intended to be sold ultimately at retail; or for generating electric
current; or the property is a chemical, solvent, sorbent, or reagent, which is directly used and is consumed, dissipated,
or depleted, in processing tangible personal property which is intended to be sold ultimately at retail or consumed in the
maintenance or repair of fabric or clothing, and which may not become a component or integral part of the finished product.
The distribution to the public of free newspapers or shoppers guides is a retail sale for purposes of the processing exemption
set out in this subsection and in subsection 50.
52. The sales price from the sale of argon and other similar gases to be used in the manufacturing process.
53. The sales price from the sale of electricity to water companies assessed for property tax pursuant to sections 428.24, 428.26, and 428.28 which is used solely for the purpose of pumping water from a river or well.
54. a. The sales price from the sale of wind energy conversion property or hydroelectricity conversion property to be used as an
electric power source and the sale of the materials used to manufacture, install, or construct wind energy conversion property
or hydroelectricity conversion property used or to be used as an electric power source. b. For purposes of this subsection: (1) “Wind energy conversion property” means any device, including but not limited to a wind charger, windmill, wind turbine, tower and electrical equipment, pad
mount transformers, power lines, and substation, which converts wind energy to a form of usable energy.
(2) “Hydroelectricity conversion property” means any device, including but not limited to a generator, turbine, powerhouse, intake, coffer dam, walls, water conduit,
tailrace, any other concrete components, electrical equipment substation, poles, wires, transformers, breakers, and switches
used to convert water, water power, or hydroelectricity to a form of usable energy.
55. The sales price from the sales of newspapers, free newspapers, or shoppers guides and the printing and publishing of such
newspapers and shoppers guides, and envelopes for advertising.
56. The sales price from the sale of motor fuel and special fuel consumed for highway use or in watercraft or aircraft where the
fuel tax has been imposed and paid and no refund has been or will be allowed and the sales price from the sales of ethanol
blended gasoline, as defined in section 214A.1.
57. The sales price from all sales of food and food ingredients. However, as used in this subsection, a sale of “food and food ingredients” does not include a sale of alcoholic beverages, candy, or dietary supplements; food sold through vending machines; or sales
of prepared food, soft drinks, or tobacco. For the purposes of this subsection: a. “Alcoholic beverages” means beverages that are suitable for human consumption and contain one-half of one percent or more of alcohol by volume.
b. “Candy” means a preparation of sugar, honey, or other natural or artificial sweeteners in combination with chocolate, fruits, nuts,
or other ingredients or flavorings in the form of bars, drops, or pieces. Candy shall not include any preparation containing
flour and shall require no refrigeration.
c. “Dietary supplement” means any product, other than tobacco, intended to supplement the diet that meets all of the following criteria: (1) The product contains one or more of the following dietary ingredients: (a) A vitamin.
(b) A mineral.
(c) An herb or other botanical.
(d) An amino acid.
(e) A dietary substance for use by humans to supplement the diet by increasing the total dietary intake.
(f) A concentrate, metabolite, constituent, extract, or combination of any of the ingredients in subparagraph divisions (a) through
(e).
(2) The product is intended for ingestion in tablet, capsule, powder, softgel, gelcap, or liquid form, or if not intended for
ingestion in such a form, is not represented as conventional food and is not represented for use as a sole item of a meal
or of the diet.
(3) The product is required to be labeled as a dietary supplement, identifiable by the “supplement facts” box found on the label
and as required pursuant to 21 C.F.R. §101.36.
d. “Food and food ingredients” means substances, whether in liquid, concentrated, solid, frozen, dried, or dehydrated form, that are sold for ingestion
or chewing by humans and are consumed for their taste or nutritional value. “Food and food ingredients” includes beverage-grade carbon dioxide gas.
e. “Food sold through vending machines” means food dispensed from a machine or other mechanical device that accepts payment, other than food which would be qualified
for exemption under subsection 58 if purchased with a coupon described in subsection 58.
f. “Prepared food” means any of following: (1) Food sold in a heated state or heated by the seller, including food sold by a caterer.
(2) Two or more food ingredients mixed or combined by the seller for sale as a single item.
(3) “Prepared food”, for the purposes of this paragraph, does not include food that is any of the following: (a) Only cut, repackaged, or pasteurized by the seller.
(b) Eggs, fish, meat, poultry, and foods containing these raw animal foods requiring cooking by the consumer as recommended by
the United States food and drug administration, ch. 3, part 401.11 of its food code, so as to prevent foodborne illnesses.
(c) Bakery items sold by the seller which baked them. The words “bakery items” includes but is not limited to breads, rolls, buns, biscuits, bagels, croissants, pastries, donuts, Danish, cakes, tortes,
pies, tarts, muffins, bars, cookies, and tortillas.
(d) Food sold without eating utensils provided by the seller in an unheated state as a single item which is priced by weight or
volume.
(e) Food sold that ordinarily requires additional cooking by the consumer prior to consumption.
(4) Food sold with eating utensils provided by the seller, including plates, knives, forks, spoons, glasses, cups, napkins, or
straws. A plate does not include a container or packaging used to transport food.
g. “Soft drinks” means nonalcoholic beverages that contain natural or artificial sweeteners. “Soft drinks” does not include beverages that contain milk or milk products; soy, rice, or similar milk substitutes; or greater than fifty
percent of vegetable or fruit juice by volume.
h. “Tobacco” means cigarettes, cigars, chewing or pipe tobacco, or any other item that contains tobacco.
58. The sales price from the sale of items purchased with coupons, food stamps, electronic benefits transfer cards, or other methods
of payment authorized by the United States department of agriculture, and issued under the federal Food Stamp Act of 1977, 7 U.S.C. §2011 et seq. or under the federal supplemental nutritional assistance program established in 7 U.S.C. §2013.
59. In transactions in which tangible personal property is traded toward the sales price of other tangible personal property,
that portion of the sales price which is not payable in money to the retailer is exempted from the taxable amount if the following
conditions are met: a. The tangible personal property traded to the retailer is the type of property normally sold in the regular course of the retailer’s
business.
b. The tangible personal property traded to the retailer is intended by the retailer to be ultimately sold at retail or is intended
to be used by the retailer or another in the remanufacturing of a like item.
60. The sales price from the sale of prescription drugs, durable medical equipment, mobility enhancing equipment, prosthetic devices,
and other medical devices intended for human use or consumption. For the purposes of this subsection: a. “Drug” means a compound, substance, or preparation, and any component of a compound, substance, or preparation, other than food
and food ingredients, dietary supplements, or alcoholic beverages, which is any of the following: (1) Recognized in the official United States pharmacopoeia, official homeopathic pharmacopoeia of the United States, or official
national formulary, and supplement to any of them.
(2) Intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease.
(3) Intended to affect the structure or any function of the body.
b. “Durable medical equipment” means equipment, including repair and replacement parts, and all components or attachments, 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.
c. “Mobility enhancing equipment” means equipment, including repair and replacement parts, but does not include durable medical equipment, to which all of
the following apply: (1) Is primarily and customarily used to provide or increase the ability to move from one place to another and which is appropriate
for use either in a home or a motor vehicle.
(2) Is not generally used by persons with normal mobility.
(3) Does not include any motor vehicle or equipment on a motor vehicle normally provided by a motor vehicle manufacturer.
(4) Is prescribed by a practitioner.
d. “Other medical device” means equipment or a supply that is not a drug, durable medical equipment, mobility enhancing equipment, or prosthetic device.
“Other medical devices” includes but is not limited to ostomy, urological, and tracheostomy supplies, diabetic testing materials, hypodermic syringes
and needles, anesthesia trays, biopsy trays and biopsy needles, cannula systems, catheter trays and invasive catheters, fistula
sets, irrigation solutions, intravenous administering solutions and stopcocks, myelogram trays, small vein infusion kits,
spinal puncture trays, and venous blood sets intended to be dispensed for human use with or without a prescription to an ultimate
user.
e. “Practitioner” means a practitioner as defined in section 155A.3, or a person licensed to prescribe drugs.
f. “Prescription” means an order, formula, or recipe issued in any form of oral, written, electronic, or other means of transmission by a practitioner.
g. “Prescription drug” means a drug intended to be dispensed to an ultimate user pursuant to a prescription drug order, formula, or recipe issued
in any form of oral, written, electronic, or other means of transmission by a duly licensed practitioner, or oxygen or insulin
dispensed for human consumption with or without a prescription drug order or medication order.
h. (1) “Prosthetic device” means a replacement, corrective, or supportive device including repair and replacement parts for the same worn on or in the
body to do any of the following: (a) Artificially replace a missing portion of the body.
(b) Prevent or correct physical deformity or malfunction.
(c) Support a weak or deformed portion of the body.
(2) “Prosthetic device” includes but is not limited to orthopedic or orthotic devices, ostomy equipment, urological equipment, tracheostomy equipment,
and intraocular lenses.
i. “Ultimate user” means an individual who has lawfully obtained and possesses a prescription drug or medical device for the individual’s own
use or for the use of a member of the individual’s household, or an individual to whom a prescription drug or medical device
has been lawfully supplied, administered, dispensed, or prescribed.
61. The sales price from services furnished by aerial commercial and charter transportation services.
62. The sales price from the sale of raffle tickets for a raffle licensed and conducted at a fair pursuant to section 99B.24.
63. The sales price from the sale 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 chapter 99B.
64. The sales price from the sale of a modular home, as defined in section 435.1, to the extent of the portion of the purchase price of the modular home which is not attributable to the cost of the tangible
personal property used in the processing of the modular home. For purposes of this exemption, the portion of the purchase
price which is not attributable to the cost of the tangible personal property used in the processing of the modular home is
forty percent.
65. Reserved.
66. Reserved.
67. Reserved.
68. a. The sales price from the sale of an article of clothing designed to be worn on or about the human body if all of the following
apply: (1) The sales price of the article is less than one hundred dollars.
(2) The sale takes place during a period beginning at 12:01 a.m. on the first Friday in August and ending at midnight on the following
Saturday.
b. This subsection does not apply to any of the following: (1) Sport or recreational equipment and protective equipment.
(2) Clothing accessories or equipment.
(3) The rental of clothing.
c. For purposes of this subsection: (1) “Clothing” means all human wearing apparel suitable for general use. (a) “Clothing” includes but is not limited to the following: aprons, household and shop; athletic supporters; baby receiving blankets; bathing suits and caps; beach capes and coats; belts
and suspenders; boots; coats and jackets; costumes; earmuffs; footlets; formal wear; garters and garter belts; girdles; gloves
and mittens for general use; hats and caps; hosiery; insoles for shoes; lab coats; neckties; overshoes; pantyhose; rainwear;
rubber pants; sandals; scarves; shoes and shoelaces; slippers; sneakers; socks and stockings; steel-toed shoes; underwear;
uniforms, athletic and nonathletic; and wedding apparel.
(b) “Clothing” does not include the following: belt buckles sold separately; costume masks sold separately; patches and emblems sold separately; sewing equipment and supplies
(including but not limited to knitting needles, patterns, pins, scissors, sewing machines, sewing needles, tape measures,
and thimbles); and sewing materials that become part of clothing (including but not limited to buttons, fabric, lace, thread,
yarn, and zippers).
(2) “Clothing accessories or equipment” means incidental items worn on the person or in conjunction with clothing. “Clothing accessories or equipment” includes but is not limited to the following: briefcases; cosmetics; hair notions (including but not limited to barrettes, hair bows, and hair nets); handbags; handkerchiefs;
jewelry; sunglasses, nonprescription; umbrellas; wallets; watches; and wigs and hairpieces.
(3) “Protective equipment” means items for human wear and designed as protection for the wearer against injury or disease or as protection against damage
or injury of other persons or property but not suitable for general use. “Protective equipment” includes but is not limited to the following: breathing masks; clean room apparel and equipment; ear and hearing protectors; face shields; hard hats; helmets; paint or
dust respirators; protective gloves; safety glasses and goggles; safety belts; tool belts; and welders gloves and masks.
(4) “Sport or recreational equipment” means items designed for human use and worn in conjunction with an athletic or recreational activity that are not suitable
for general use. “Sport or recreational equipment” includes but is not limited to the following: ballet and tap shoes; cleated or spiked athletic shoes; gloves (including but not limited to baseball, bowling, boxing, hockey,
and golf); goggles; hand and elbow guards; life preservers and vests; mouth guards; roller and ice skates; shin guards; shoulder
pads; ski boots; waders; and wetsuits and fins.
69. The sales price from charges paid for the delivery of electricity or natural gas if the sale or furnishing of the electricity
or natural gas or its use is exempt from the tax on sales prices imposed under this subchapter or from the use tax imposed under subchapter III.
69A. The sales price from surcharges paid for 911 service and wireless 911 service pursuant to chapter 34A.
70. The sales price of delivery charges. This exemption does not apply to the delivery of electric energy or natural gas.
71. The sales price from sales of tangible personal property used or to be used as railroad rolling stock for transporting persons
or property, or as materials or parts therefor.
72. The sales price from the sales of special fuel for diesel engines consumed or used in the operation of ships, barges, or waterborne
vessels which are used primarily in or for the transportation of property or cargo, or the conveyance of persons for hire
on rivers bordering on the state if the fuel is delivered by the seller to the purchaser’s barge, ship, or waterborne vessel
while it is afloat upon such a river.
73. The sales price from sales of vehicles subject to registration or subject only to the issuance of a certificate of title and
sales of aircraft subject to registration under section 328.20.
74. The sales price from the sale of aircraft for use in a scheduled interstate federal aviation administration certificated air
carrier operation.
75. Reserved.
76. The sales price from the sale of tangible personal property permanently affixed or attached as a component part of the aircraft,
including but not limited to repair or replacement materials or parts; and the sales price of all services used for aircraft
repair, remodeling, and maintenance services when such services are performed on aircraft, aircraft engines, or aircraft component
materials or parts. For the purposes of this exemption, “aircraft” means the same as defined in section 328.1.
77. a. The sales price from the sale of aircraft to an aircraft dealer who in turn rents or leases the aircraft if all of the following
apply: (1) The aircraft is kept in the inventory of the dealer for sale at all times.
(2) The dealer reserves the right to immediately take the aircraft from the renter or lessee when a buyer is found.
(3) The renter or lessee is aware that the dealer will immediately take the aircraft when a buyer is found.
b. If an aircraft exempt under this subsection is used for any purpose other than leasing or renting, or the conditions in paragraph “a”, subparagraphs (1), (2), and (3), are not continuously met, the dealer claiming the exemption under this subsection is liable for the tax that would have been due except for this subsection. The tax shall be computed upon the original purchase price.
78. a. The sales price from the sale of tangible personal property, specified digital products, or services rendered by any entity
where the profits from the sale of the tangible personal property, specified digital products, or services rendered, are used
by or donated to a nonprofit entity that is exempt from federal income taxation pursuant to section 501(c)(3) of the Internal Revenue Code, a government entity, or a nonprofit private educational institution, and where the entire profits are expended for any of
the following purposes: (1) Educational.
(2) Religious.
(3) Charitable. A charitable act is an act done out of goodwill, benevolence, and a desire to add to or to improve the good of
humankind in general or any class or portion of humankind, with no pecuniary profit inuring to the person performing the service
or giving the gift.
b. For purposes of this exemption, an organization that meets the requirements of paragraph “a” and which is created for the sole or primary purpose of providing athletic activities to youth shall be considered created
for an educational purpose.
c. Except as otherwise provided in subsection 97, this exemption does not apply to the sales price from games of skill, games of chance, raffles, and bingo games as defined
in chapter 99B. This exemption is disallowed on the amount of the sales price only to the extent the profits are not used by or donated
to the appropriate entity and expended for educational, religious, or charitable purposes.
79. The sales price from the sale of tangible personal property or specified digital products, or from services furnished, to
a recognized community action agency as provided in section 216A.93 to be used for the purposes of the agency.
80. a. For purposes of this subsection, “designated exempt entity” means any of the following:
(2) An entity which is an instrumentality of a county or municipal government, including an agent of such entity, if the entity
was created for the purpose of owning, including pursuant to a lease-purchase agreement, real property located within a reinvestment
district established under chapter 15J. b. Subject to the limitations in paragraph “c”, if a contractor, subcontractor, or builder is to use building materials, supplies, equipment, or services in the performance
of a written construction contract with a designated exempt entity, the person shall purchase such items of tangible personal
property or services without liability for the tax if such property or services will be used in the performance of the written
construction contract and a purchasing agent authorization letter and an exemption certificate, issued by the designated exempt
entity, are presented to the retailer.
c. (1) With regard to a written construction contract with a designated exempt entity described in paragraph “a”, subparagraph (1), the sales price of building materials, supplies, equipment, or services is exempt from tax by this subsection only to the extent the building materials, supplies, equipment, or services are completely consumed in the performance of
the construction contract with the designated exempt entity, and only if the property that is the subject of the construction
project becomes public property or the property of the designated exempt entity. (2) With regard to a written construction contract with a designated exempt entity described in paragraph “a”, subparagraph (2), the sales price of building materials, supplies, equipment, or services is exempt from tax by this subsection only to the extent the building materials, supplies, equipment, or services are completely consumed in the performance of
a construction contract to construct a project, as defined in section 15J.2, subsection 10, which project has been approved by the economic development authority board in accordance with chapter 15J.
d. Subject to the limitations in paragraph “c”, where the owner, contractor, subcontractor, or builder is also a retailer holding a retail sales or use tax permit and transacting
retail sales of building materials, supplies, and equipment, the tax shall not be due when materials are withdrawn from inventory
for use in construction performed for a designated exempt entity if an exemption certificate is received from such entity.
e. Subject to the limitations in paragraph “c”, tax shall not apply to tangible personal property purchased and consumed by a manufacturer as building materials, supplies,
or equipment in the performance of a construction contract for a designated exempt entity, if a purchasing agent authorization
letter and an exemption certificate are received from such entity and presented to a retailer.
81. The sales price from the sales of lottery tickets or shares pursuant to chapter 99G.
82. a. The sales price from the sale of core-making, mold-making, and sand-handling machinery and equipment, including replacement
parts, directly and primarily used in the mold-making process by a foundry. b. The sales price from the sale of fuel used in creating heat, power, steam, or for generating electric current, or from the
sale of electricity, consumed by core-making, mold-making, and sand-handling machinery and equipment used directly and primarily
in the mold-making process by a foundry.
c. The sales price from the furnishing of the design and installation, including electrical and electronic installation, of core-making,
mold-making, and sand-handling machinery and equipment used directly and primarily in the mold-making process by a foundry.
83. The sales price from noncustomer point of sale or noncustomer automated teller machine access or service charges assessed
by a financial institution. For purposes of this subsection, “financial institution” means the same as defined in section 527.2.
84. a. Subject to paragraph “b”, the sales price from the sale or furnishing of metered gas, electricity, and fuel, including propane and heating oil, to
residential customers which is used to provide energy for residential dwellings and units of apartment and condominium complexes
used for human occupancy. b. The exemption in this subsection shall be phased in by means of a reduction in the tax rate as follows: (1) If the date of the utility billing or meter reading cycle of the residential customer for the sale or furnishing of metered
gas and electricity is on or after January 1, 2004, through December 31, 2004, or if the sale or furnishing of fuel for purposes
of residential energy and the delivery of the fuel occurs on or after January 1, 2004, through December 31, 2004, the rate
of tax is two percent of the sales price.
(2) If the date of the utility billing or meter reading cycle of the residential customer for the sale or furnishing of metered
gas and electricity is on or after January 1, 2005, through December 31, 2005, or if the sale or furnishing of fuel for purposes
of residential energy and the delivery of the fuel occurs on or after January 1, 2005, through December 31, 2005, the rate
of tax is one percent of the sales price.
(3) If the date of the utility billing or meter reading cycle of the residential customer for the sale or furnishing of metered
gas and electricity is on or after January 1, 2006, or if the sale, furnishing, or service of fuel for purposes of residential
energy and the delivery of the fuel occurs on or after January 1, 2006, the rate of tax is zero percent of the sales price.
85. The sales price from the sale of the following items: self-propelled building equipment, pile drivers, motorized scaffolding, or attachments customarily drawn or attached to self-propelled
building equipment, pile drivers, and motorized scaffolding, 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.
86. a. The sales price from services performed on a vessel if all of the following apply: (1) The vessel is a licensed vessel under the laws of the United States coast guard.
(2) The service is used to repair or restore a defect in the vessel.
(3) The vessel is engaged in interstate commerce and will continue in interstate commerce once the repairs or restoration is completed.
(4) The vessel is in navigable water that borders a boundary of this state.
b. For purposes of this exemption, “vessel” includes a ship, barge, or other waterborne vessel.
87. The sales price from the sales of toys to a nonprofit organization exempt from federal income tax under section 501 of the
Internal Revenue Code that purchases the toys from donations collected by the nonprofit organization and distributes the toys
to children at no cost.
88. The sales price from the sale of building materials, supplies, or tangible personal property sold to a nonprofit Iowa affiliate
of a nonprofit international organization whose primary activity is the promotion of the construction, remodeling, or rehabilitation
of one-family or two-family dwellings for use by low-income families and where the building materials, supplies, or tangible
personal property are used in the construction, remodeling, or rehabilitation of such dwellings.
89. a. The sales price of all tangible personal property sold, or of services furnished, which are used in the fulfillment of a written
construction contract for the original construction of a building or structure to be used as a collaborative educational facility. b. The sales price of all tangible personal property sold, or of services furnished, which are used in the fulfillment of a written
construction contract for the construction of additions or modifications to a building or structure used as part of a collaborative
educational facility.
c. To receive the exemption provided in paragraph “a” or “b”, a collaborative educational facility must meet all of the criteria in paragraph “d” or “e”:
d. (1) The contract for construction of the building or structure is entered into on or after April 1, 2003. (2) The building or structure is located within the corporate limits of a city in the state with a population in excess of one
hundred ninety-five thousand residents.
(3) The sole purpose of the building or structure is to provide facilities for a collaborative of public and private educational
institutions that provide education to students.
(4) The owner of the building or structure is a nonprofit corporation governed by chapter 504 or former chapter 504A which is exempt from federal income tax pursuant to section 501(a) of the Internal Revenue Code.
e. (1) The contract for construction of the building or structure is entered into on or after May 15, 2007. (2) The sole purpose of the building or structure is to provide facilities for a regional academy under a collaborative of public
and private educational institutions that includes a community college established under chapter 260C that provide education to students.
(3) The owner of the building or structure is a qualified charitable nonprofit corporation governed by chapter 504 or former chapter 504A which is exempt from federal income tax pursuant to section 501(c)(3) of the Internal Revenue Code.
f. References to “building” or “structure” in paragraphs “d” and “e” include any additions or modifications to the building or structure.
90. The sales price from the sale of solar energy equipment. For purposes of this subsection, “solar energy equipment” means equipment that is primarily used to collect and convert incident solar radiation into thermal, mechanical, or electrical
energy or equipment that is primarily used to transform such converted solar energy to a storage point or to a point of use.
91. a. The sales price from the sale of coins, currency, or bullion. b. For purposes of this subsection: (1) “Bullion” means bars, ingots, or commemorative medallions of gold, silver, platinum, palladium, or a combination of these where the
value of the metal depends on its content and not the form.
(2) “Coins” or “currency” means a coin or currency made of gold, silver, or other metal or paper which is or has been used as legal tender.
92. a. (1) The sales price from the sale of computers and equipment that are necessary for the maintenance and operation of a web search
portal and property whether directly or indirectly connected to the computers, including but not limited to cooling systems,
cooling towers, and other temperature control infrastructure; power infrastructure for transformation, distribution, or management
of electricity used for the maintenance and operation of the web search portal, including but not limited to exterior dedicated
business-owned substations, backup power generation systems, battery systems, and related infrastructure; and racking systems,
cabling, and trays, which are necessary for the maintenance and operation of the web search portal. (2) The sales price of backup power generation fuel, that is purchased by a web search portal business for use in the items listed
in subparagraph (1).
(3) The sales price of electricity purchased for use in providing a web search portal.
b. For the purpose of claiming this exemption, all of the following requirements shall be met: (1) The business of the purchaser shall be as a provider of a web search portal.
(2) The web search portal business shall have a physical location in the state that is used for the operations and maintenance
of the web search portal site on the internet including but not limited to research and development to support capabilities
to organize information and to provide internet access, navigation, and search.
(3) The web search portal business shall make a minimum investment in an Iowa physical location of two hundred million dollars
within the first six years of operation in Iowa beginning with the date the web search portal 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 web search portal business shall purchase, option, or lease Iowa land not later than December 31, 2008, for any initial
investment. However, the December 31, 2008, date shall not affect the future purchases of adjacent land and additional investment
in the initial or adjacent land to qualify as part of the minimum investment for purposes of this exemption.
c. This exemption applies from the date of the initial investment in or the initiation of site preparation activities for the
web search portal facility as described in paragraph “b”. For purposes of claiming this exemption, the requirements may be met by aggregating the various Iowa investments and other
requirements of the web search portal business’s affiliates. This exemption applies to affiliates of the web search portal
business.
d. Failure to meet eighty percent of the minimum investment amount requirement specified in paragraph “b” within the first six years of operation from the date the web search portal business initiates site preparation activities
will result in the web search portal business losing the right to claim this exemption and the web search portal business
shall pay all sales or use tax that would have been due on the purchase or use of the items listed in this exemption, plus
any applicable penalty and interest imposed by statute.
e. For purposes of this subsection: (1) “Affiliate” means an entity that directly or indirectly controls, is controlled with or by, or is under common control with another entity.
(2) “Control” means any of the following: (a) In the case of a United States corporation, the ownership, directly or indirectly, of fifty percent or more of the voting
power to elect directors.
(b) In the case of a foreign corporation, if the voting power to elect the directors is less than fifty percent, the maximum amount
allowed by applicable law.
(c) In the case of an entity other than a corporation, fifty percent or more ownership interest in the entity, or the power to
direct the management of the entity.
(3) “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.
93. a. (1) The sales price from the sale of computers and equipment that are necessary for the maintenance and operation of a web search
portal business and property whether directly or indirectly connected to the computers, including but not limited to cooling
systems, cooling towers, and other temperature control infrastructure; power infrastructure for transformation, distribution,
or management of electricity used for the maintenance and operation of the web search portal business, including but not limited
to exterior dedicated business-owned substations, backup power generation systems, battery systems, and related infrastructure;
and racking systems, cabling, and trays, which are necessary for the maintenance and operation of the web search portal business. (2) The sales price of backup power generation fuel, that is purchased by a web search portal business for use in the items listed
in subparagraph (1).
(3) The sales price of electricity purchased for use by a web search portal business.
b. For the purpose of claiming this exemption, all of the following requirements shall be met: (1) The purchaser shall be a web search portal business.
(2) The web search portal business shall have a physical location in the state that is used for the operations and maintenance
of the web search portal business.
(3) The web search portal business shall make a minimum investment in an Iowa physical location of two hundred million dollars
within the first six years of operation in Iowa beginning with the date the web search portal 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 web search portal business shall purchase, option, or lease Iowa land not later than December 31, 2008, for any initial
investment. However, the December 31, 2008, date shall not affect the future purchases of adjacent land and additional investment
in the initial or adjacent land to qualify as part of the minimum investment for purposes of this exemption.
c. This exemption applies from the date of the initial investment in or the initiation of site preparation activities for the
web search portal facility as described in paragraph “b”. For purposes of claiming this exemption, the requirements may be met by aggregating the various Iowa investments and other
requirements of the web search portal business’s affiliates. This exemption applies to affiliates of the web search portal
business.
d. Failure to meet eighty percent of the minimum investment amount requirement specified in paragraph “b” within the first six years of operation from the date the web search portal business initiates site preparation activities
will result in the web search portal business losing the right to claim this web search portal business exemption and the
web search portal business shall pay all sales or use tax that would have been due on the purchase or use of the items listed
in this exemption, plus any applicable penalty and interest imposed by statute.
e. For purposes of this subsection: (1) “Affiliate” means an entity that directly or indirectly controls, is controlled with or by, or is under common control with another entity.
(2) “Control” means any of the following: (a) In the case of a United States corporation, the ownership, directly or indirectly, of fifty percent or more of the voting
power to elect directors.
(b) In the case of a foreign corporation, if the voting power to elect the directors is less than fifty percent, the maximum amount
allowed by applicable law.
(c) In the case of an entity other than a corporation, fifty percent or more ownership interest in the entity, or the power to
direct the management of the entity.
(3) “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.
95. a. (1) The sales price from the sale of computers and equipment that are necessary for the maintenance and operation of a data center
business and property whether directly or indirectly connected to the computers, including but not limited to cooling systems,
cooling towers, and other temperature control infrastructure; power infrastructure for transformation, distribution, or management
of electricity used for the maintenance and operation of the data center business, including but not limited to exterior dedicated
business-owned substations, backup power generation systems, battery systems, and related infrastructure; and racking systems,
cabling, and trays, which are necessary for the maintenance and operation of the data center business. (2) The sales price of backup power generation fuel that is purchased by a data center business for use in the items listed in
subparagraph (1).
(3) The sales price of electricity purchased for use by a data center business.
b. For the purpose of claiming this exemption, all of the following requirements shall be met: (1) The purchaser shall be a data center business.
(2) The data center business shall have a physical location in the state that is, in the aggregate, at least five thousand square
feet in size that is used for the operations and maintenance of the data center business.
(3) The data center business shall make a minimum investment in an Iowa physical location of two hundred million dollars 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 sustainable design and construction standards established by the state building
code commissioner pursuant to section 103A.8B.
c. This exemption applies from the date of the initial investment in or the initiation of site preparation activities for the
data center business facility as described in paragraph “b”.
d. Failure to meet eighty percent of the minimum investment amount requirement specified in paragraph “b” within the first six years of operation from the date the data center business initiates site preparation activities will
result in the data center business losing the right to claim this data center business exemption and the data center business
shall pay all sales or use tax that would have been due on the purchase or use of the items listed in this exemption, plus
any applicable penalty and interest imposed by statute.
e. For purposes of this subsection: (1) “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. A data center business’s facility typically includes the mechanical and electrical systems,
redundant or backup power supplies, redundant data communications connections, environmental controls, and fire suppression
systems. A data center business’s facility also includes a restricted access area employing advanced physical security measures
such as video surveillance systems and card-based security or biometric security access systems.
(2) “Data center business” means an entity whose business among other businesses, is to operate a data center.
96. The sale price of fees charged for the release of medical records as described in section 622.10.
97. The sales price from raffles, as raffle is defined in section 99B.1, if the raffle provides for educational scholarships and is conducted by a qualified organization representing veterans as
defined in section 99B.27.
98. The sales price from the sale of water, electricity, chemicals, solvents, sorbents, or reagents to a retailer to be used in
providing a service that includes a vehicle wash and wax, which vehicle wash and wax service is subject to section 423.2, subsection 6.
99. a. The sales price from the sale of chemicals, solvents, sorbents, reagents, or other tangible personal property used in providing
a vehicle repair service subject to section 423.2, subsection 6, if all of the following conditions are met: (1) The chemicals, solvents, sorbents, reagents, or other tangible personal property are directly and primarily used in providing
the vehicle repair service.
(2) The chemicals, solvents, sorbents, reagents, or other tangible personal property are consumed or dissipated in providing the
vehicle repair service.
(3) The chemicals, solvents, sorbents, reagents, or other tangible personal property will come into physical contact with the
vehicle upon which the vehicle repair service is performed.
b. The exemption under this subsection does not apply to tangible personal property that can be used to provide multiple vehicle repair services, including but
not limited to machinery, tools, and equipment.
100. The sales price from services furnished by forestry consultants and forestry vendors engaged in forestry practices on private
or public land.
101. The sales price for the use of a self-pay washer or dryer.
102. The sales price from the furnishing of environmental testing services performed at a laboratory, in the field, or by a mobile
testing service. For purposes of this subsection, “environmental testing” means the physical or chemical analysis of soil, water, wastewater, air, or solid waste performed in order to ascertain the
presence of environmental contamination or degradation.
103. a. The sales price from the sale or furnishing by a water utility of a water service in the state to consumers or users. b. For purposes of this subsection: (1) “Water service” means the delivery of water by piped distribution system.
(2) “Water utility” means a public utility as defined in section 476.1 that furnishes water by piped distribution system to the public for compensation.
104. a. The sales price of specified digital products and of prewritten computer software sold, and of enumerated services described
in section 423.2, subsection 1, paragraph “a”, subparagraph (5), or section 423.2, subsection 6, paragraphs “bq”, “br”, “bs”, and “bu” furnished, to a commercial enterprise for use exclusively by the commercial enterprise. The use of prewritten computer software,
a specified digital product, or service fails to qualify as a use exclusively by the commercial enterprise if its use for
noncommercial purposes is more than de minimis. b. For purposes of this subsection:
(2) “De minimis” and “noncommercial purposes” shall be defined by the director by rule.
105. The sales price of specified digital products sold to a non-end user. For purposes of this subsection, “non-end user” means a person who receives by contract a specified digital product for further commercial broadcast, rebroadcast, transmission,
retransmission, licensing, relicensing, distribution, redistribution, or exhibition of the product, in whole or in part, to
another person.
106. The sales price for transportation services furnished by emergency or nonemergency medical transportation, by a paratransit
service, and by a public transit system as defined in section 324A.1.
107. The sales price of the sale of tangible personal property sold to and of services furnished to a nonprofit food bank, if the
property or services are used by the nonprofit food bank for a charitable purpose. For purposes of this subsection, “nonprofit food bank” means an organization organized under chapter 504 and qualifying under section 501(c)(3) of the Internal Revenue Code as an organization exempt from federal income tax under section 501(a) of the Internal Revenue Code that maintains an established operation involving the provision of food or edible commodities or the products thereof on
a regular basis to persons in need or to food pantries, soup kitchens, hunger relief centers, or other food or feeding centers
that, as an integral part of their normal activities, provide meals or food on a regular basis to persons in need.
108. The sales price from the sale of feminine hygiene products. For purposes of this subsection, “feminine hygiene products” means tampons, panty liners, menstrual cups, sanitary napkins, and other similar tangible personal property designed for
feminine hygiene in connection with the human menstrual cycle.
109. The sales price from the sale of a child or adult diaper, whether cloth or disposable.
2003 Acts, 1st Ex, ch 2, §96, 205; 2004 Acts, ch 1022, §4; 2004 Acts, ch 1049, §191; 2004 Acts, ch 1073, §26, 27; 2004 Acts, ch 1086, §105; 2004 Acts, ch 1133, §1; 2004 Acts, ch 1175, §320, 394; 2005 Acts, ch 71, §1; 2005 Acts, ch 134, §1; 2005 Acts, ch 140, §6 – 11, 16, 30, 44 – 46, 72, 73; 2006 Acts, ch 1001, §1, 2, 4, 5; 2006 Acts, ch 1134, §1; 2006 Acts, ch 1158, §40 – 44; 2006 Acts, ch 1161, §5, 7; 2006 Acts, ch 1162, §1; 2006 Acts, ch 1185, §128; 2007 Acts, ch 22, §74, 75; 2007 Acts, ch 186, §21, 22; 2007 Acts, ch 199, §1; 2007 Acts, ch 215, §112, 125; 2008 Acts, ch 1006, §1; 2008 Acts, ch 1163, §1; 2008 Acts, ch 1184, §55, 56; 2009 Acts, ch 133, §144; 2009 Acts, ch 179, §136, 197, 218 – 220; 2010 Acts, ch 1031, §388; 2010 Acts, ch 1148, §1; 2011 Acts, ch 25, §41, 42, 85 – 87, 143; 2011 Acts, ch 92, §6; 2012 Acts, ch 1019, §131; 2012 Acts, ch 1104, §1; 2012 Acts, ch 1110, §18, 19; 2012 Acts, ch 1121, §13, 14; 2012 Acts, ch 1125, §1; 2012 Acts, ch 1139, §2, 3, 6; 2013 Acts, ch 11, §1; 2013 Acts, ch 70, §12 – 15; 2013 Acts, ch 92, §1; 2013 Acts, ch 138, §59; 2013 Acts, ch 140, §127, 128; 2014 Acts, ch 1026, §89; 2014 Acts, ch 1050, §1; 2014 Acts, ch 1093, §22; 2014 Acts, ch 1127, §2, 3; 2014 Acts, ch 1129, §1; 2015 Acts, ch 30, §120; 2015 Acts, ch 94, §1; 2015 Acts, ch 99, §54; 2015 Acts, ch 114, §2; 2015 Acts, ch 116, §15, 16, 19, 20; 2016 Acts, ch 1007, §8, 9; 2016 Acts, ch 1128, §6, 16, 18, 27; 2018 Acts, ch 1001, §10, 27; 2018 Acts, ch 1026, §132, 133; 2018 Acts, ch 1155, §1; 2018 Acts, ch 1161, §175 – 188, 229, 230; 2019 Acts, ch 59, §125; 2019 Acts, ch 141, §1; 2019 Acts, ch 152, §22 – 24, 32, 34, 54 – 56; 2020 Acts, ch 1063, §227, 228; 2020 Acts, ch 1118, §38 – 40, 50, 51, 96; 2021 Acts, ch 75, §6; 2021 Acts, ch 86, §53 – 69; 2021 Acts, ch 177, §72; 2022 Acts, ch 1021, §102, 103, 181, 187; 2022 Acts, ch 1125, §8, 9; 2022 Acts, ch 1138, §7 – 9, 40, 42 – 44, 61, 63, 64
Referred to in
§2.48, 8G.4, 123.173A, 321.105A, 423.1, 423.2, 423.4, 423.6, 423.33, 423C.3, 423G.2, 423G.4, 427.1(35)(a), 427.1(35)(b), 427.1(36)(a), 427.1(36)(b), 427.1(37)(a), 622.10