CHAPTER 33RECEIPTS SUBJECT TO USE TAX DEPENDING ONMETHOD OF TRANSACTION[Prior to 12/17/86, Revenue Department]70133.1(423) Gifts and prizes. Rescinded IAB 9/4/91, effective 10/9/91.70133.2(423) Federal manufacturer’s or retailer’s excise tax. See rule 701—15.12(422,423) for the principles used to determine when federal excise tax is included in or excluded from the “purchase price” upon which Iowa use tax is based. The rule also contains a list of federal excise taxes which are currently includable in or excludable from the purchase price.70133.3(423) Fuel consumed in creating power, heat or steam for processing or generating electric current. Tangible personal property purchased outside the state and consumed in creating power, heat or steam for processing tangible personal property or for generating electric current intended to be sold ultimately at retail shall be exempt from use tax. If the property purchased to be consumed as fuel in creating power, heat or steam for processing is also used in the heating of the factory or office, ventilation of the building, lighting of the premises or for any use other than that of direct processing, that portion of the property so used shall be subject to use tax.When buying tangible personal property, part of which is exempt as fuel under the provisions of the law, from an out-of-state seller registered to collect use tax for the state, the purchaser shall furnish to such registered seller a written certificate certifying the cost of the property which is to be used for processing and shall, therefore, be exempt. The certificate shall also show the cost of the property which is not to be used in processing and, therefore, taxable in order that the registered seller may properly bill the amount of use tax due. See 701—17.3(422).70133.4(423) Repair of tangible personal property outside the state of Iowa. A person who owns tangible personal property in the state of Iowa and sends such property or causes such property to be sent outside the state for the purpose of having it repaired and brings such property back into Iowa, shall be liable for the payment of use tax on the full charge if the service is enumerated.When the repair is not an enumerated service subject to tax and is invoiced as a separate item from the materials furnished and used in the repair, tax shall be computed only on the charge made for the tangible personal property furnished by the repairer.70133.5(423) Taxation of American Indians. 33.5(1) Definitions.
"American Indians" means all persons of Indian descent who are members of any recognized tribe.
"Settlement" means all lands within the boundaries of the Mesquakie Indian settlement located in Tama County, Iowa, and any other recognized Indian settlement or reservation within the boundaries of the state of Iowa.33.5(2) Use tax. Out-of-state purchases made by Indians which are purchased for use on a recognized settlement or reservation where delivery occurs on a recognized settlement or reservation to Indians who are members of the tribe located on that settlement or reservation are exempt from tax. Out-of-state purchases made by Indians where delivery occurs off a recognized settlement or reservation are subject to tax even though purchased for use on a recognized settlement or reservation. 33.5(3) Use tax—vehicles subject to registration. Vehicles subject to registration with county treasurers are exempt from use tax if delivery of the vehicle is made on a recognized settlement or reservation to Indians who are members of the tribe located on that settlement or reservation. Vehicles subject to registration with county treasurers are subject to use tax if delivery of the vehicle is made off a recognized settlement or reservation.See rule 701—18.31(422,423) for the taxation of tangible personal property and services where the state sales tax may be applicable.This rule is intended to implement Iowa Code sections 423.1, 423.2, and 423.7.70133.6(422, 423) Exemption for property used in Iowa only in interstate commerce. In determining whether property used in interstate commerce is exempt from Iowa use tax, the following four circumstances will be considered. Any person claiming that use of property in Iowa is exempt from tax by virtue of its use in interstate commerce must prove that:
- The use does not have a substantial nexus with Iowa; or
- Iowa use tax is not fairly apportioned; or
- Imposition of Iowa use tax results in discrimination against interstate commerce; or
- The use tax imposed is not fairly related to services provided by Iowa and which aid the retailer or user.
- Connect the electricity.
- Connect the water.
- Connect sewer system lines.
- Sell and install skirting. Skirting is used to fill the space between the bottom of the mobile home or manufactured house and the ground. It gives the home or house an appearance more like a conventional home because it covers up this space.
- Build and install steps for a door.
- Build a deck.
- Do minor repair.
- Install and sell a foundation upon which to place the mobile home or manufactured housing.
- Sell furniture or appliances (e.g., air conditioners, refrigerators, and stoves) for use in the mobile home or manufactured housing. Install the appliance (e.g., an air conditioner) if necessary.