The Department of Revenue has submitted new proposed rules to the Iowa Legislature, available for public comment through March 3, 2020. See individual notices below for details.
- Sales and Use Tax Exemption - Grain Bins
During the 2019 Legislative Session, the General Assembly added a new exemption from sales and use tax: “The sales price from the sale of a grain bin, including material or replacement parts used to construct or repair a grain bin.” The exemption defines a grain bin as “property that is vented and covered with corrugated metal or similar material, and that is primarily used to hold loose grain for drying or storage.” This proposed rule explains what materials will be taxable or exempt under the exemption and then provides a non-exhaustive list of items commonly used to construct a grain bin or sold in conjunction with a grain bin. The proposed rule also explains how entities may claim the exemption.
- Sales and Use Tax Exemption - Manufacturers
The 2019 Iowa Code provides a sales tax exemption for manufacturers. That exemption excludes persons who are not commonly understood to be manufacturers, and excludes a person who engages in any one of five listed activities. 2019 Iowa Acts, House File 779, amends that provision to exclude persons who are primarily engaged in one of those five activities. This proposed rule making offers guidance to taxpayers as to how a person is primarily engaged in one of those activities and provides several examples of how the provision will be applied.
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