701—220.12(423) Access to on-line computer service. The sales price from charges paid to a provider for access to an on-line computer service is exempt from tax. An “on-line computer service” is one which provides for or enables multiple users to have computer access to the Internet. Also, the furnishing of any contracted on-line service is exempt from Iowa tax if the information is made available through a computer server. The exemption applies to all contracted on-line services, as long as they provide access to information through a computer server.
This rule is intended to implement 2005 Iowa Code subsection 423.3(64).
[ARC 6508C, IAB 9/7/22, effective 10/12/22]