Petitioner, a South Dakota research company, requested a determination on whether two of its services, corn breeding and yield trial testing, are services subject to sales tax. The Petitioner further inquired on how to source its services for Iowa sales tax purposes. The Director determined that Petitioner’s service of yield trial testing is a service subject to sales tax pursuant to Iowa Code section 423.2(6)(bc) while its service of corn breeding is not a service subject to sales tax.

Petitioner, a contracting firm, requested a declaratory order to determine whether installation charges for qualified manufacturing equipment, either new or used, are required to be separately stated to be exempt from sales tax and whether one lump sum charge renders the total charge taxable or exempt. The Director found that under Iowa Code section 423.3(48) and Iowa Administrative Code rule 701—215.22, only the installation of new industrial machinery or equipment is exempt from sales tax.