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Declaratory Order - Santa Fe Group, Inc.

On April 19, 2004, the Director of the Iowa Department of Revenue and Finance issued a Declaratory Order which stated that the Petitioner, which is a Roto-Rooter franchise, performs the taxable service of plumbing pursuant to Iowa Code section 422.43(11) and Department rule 701 IAC 26.36(422). The specific services rendered by the Petitioner in this matter consist of commercial and residential drain, waste, and vent systems, septic tank cleaning, grease trap cleaning, high velocity water jetting and video line inspections.

The statutory provision imposing the tax on this service does not require that a licensed plumber perform plumbing services in order to be subject to Iowa sales or use tax. Consequently, the Director stated that when these services are rendered in order to assess, maintain and clean plumbing systems, such services are taxable as plumbing pursuant to Iowa Code section 422.43(11).