701—18.12 (422,423) Hatcheries. The gross receipts from the sale of egg-type cockerel chicks, broiler chicks and turkey poults shall be subject to tax. If sale of domestic poultry is for breeding, see rule 701—17.9(422,423).
When pullets and poults are sold for production purposes, the receipts from the sales shall be exempt from tax.
This rule is intended to implement Iowa Code sections 422.42(3), 422.43, 423.1 and 423.2.