701—212.2 (423) Finance charge. Interest or other types of additional charges that result from selling on credit or under installment contracts are not subject to sales tax when such charges are separately stated and when such charges are in addition to an established cash sales price. However, if finance charges are not separately stated and a sale is made for a lump sum amount, the tax is due on the total retailer’s price.
When interest and other types of additional charges are added as a condition of a sale in order to obtain title rather than as a charge to obtain credit where title to goods has previously passed, such charges will be subject to tax even though they may be separately stated. State ex rel. Turner v.	Younker Bros., Inc., 210 N.W.2d 550 (Iowa 1973); Road Machinery Supplies of Minneapolis, Inc.	v.	The Commissioner of Revenue, Minnesota Tax Court of Appeals, 1977, 2 Minn.	CCH State Tax Reporter II 200-835, 1977 WL 963 (Minn.	Tax.). See rule 701—213.3(423) relating to conditional sales contracts.
This rule is intended to implement Iowa Code section 423.1(47)“b”(2).