Sales and Use Tax Exemption for Purchases of Computers and Computer Peripherals by Certain Entities Ends on December 31, 2023

Thursday - 12/14/2023

Iowa Code section 423.3(47)(a)(4) provides a sales and use tax exemption for purchases of computers and computer peripherals used in processing or storage of data or information by an insurance company, financial institution, or commercial enterprise. These entities are defined in Iowa Code section 423.3(47)(d).

Section 41 of 2022 Iowa Acts, Senate File 2367 strikes the exemption, effective Jan 1, 2024. Therefore, starting January 1, 2024, the purchase of computers and computer peripherals by insurance companies, financial institutions, or commercial enterprises for use in processing or the storage of data or information is subject to Iowa sales and use tax.

This information was sent via GovDelivery to those subscribed to receive Law & Policy updates from the Department. To receive notifications of resources and guidance issued by the Department, subscribe to updates by selecting the tax topics of interest.