701—16.33 (422) Pawnbrokers. Pawnbrokers are primarily engaged in the business of lending money for and accepting as security tangible personal property from the owner or pledger.
In case the pledger does not redeem the property pledged or pawned, such property is forfeited to the pawnbroker, to whom the title passes.
When pawnbrokers thereafter sell such articles at retail, they are making sales and shall collect and remit tax.
This rule is intended to implement Iowa Code sections 422.42 and 422.43.