The use in this state of the following tangible personal property, specified digital products, and services is exempted from the tax imposed by this subchapter:
 1. Tangible personal property, specified digital products, and enumerated services, the sales price from the sale of which are required to be included in the measure of the sales tax, if that tax has been paid to the department or the retailer. This exemption does not include vehicles subject to registration or subject only to the issuance of a certificate of title.
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Terms Used In Iowa Code 423.6

  • aircraft: means the same as defined in section 328. See Iowa Code 423.3
  • Certificate of title: means a certificate of title issued for a vehicle or for manufactured housing under chapter 321. See Iowa Code 423.1
  • Department: means the department of revenue. See Iowa Code 423.1
  • following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
  • in this state: includes but is not limited to sales sourced to this state under this chapter. See Iowa Code 423.1
  • Installed purchase price: includes but is not limited to amounts charged for installing a foundation and electrical and plumbing hookups. See Iowa Code 423.1
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Manufactured housing: means "manufactured home" as defined in section 321. See Iowa Code 423.1
  • Manufacturing: means those activities commonly understood within the ordinary meaning of the term, and shall include:
     (A) Refining. See Iowa Code 423.3
  • Mobile home: means "manufactured or mobile home" as defined in section 321. See Iowa Code 423.1
  • Personal property: includes but is not limited to tangible personal property and specified digital products. See Iowa Code 423.1
  • Personal property: All property that is not real property.
  • processing: means the same as defined in subsection 47, except that for purposes of the definition of "processing" used in this subsection, a "manufacturer" shall be construed to include a nonprofit blood center. See Iowa Code 423.3
  • property: includes personal and real property. See Iowa Code 4.1
  • Protective equipment: includes but is not limited to the following: breathing masks; clean room apparel and equipment; ear and hearing protectors; face shields; hard hats; helmets; paint or dust respirators; protective gloves; safety glasses and goggles; safety belts; tool belts; and welders gloves and masks. See Iowa Code 423.3
  • Purchase: means any transfer, exchange, or barter, conditional or otherwise, in any manner or by any means whatsoever, for a consideration. See Iowa Code 423.1
  • Purchase price: means the same as "sales price" as defined in this section. See Iowa Code 423.1
  • Sale: means any transfer, exchange, or barter, in any manner or by any means whatsoever, for a consideration, and includes and means all sales made by any person. See Iowa Code 453A.42
  • sale: includes a rental. See Iowa Code 423.1
  • sale at retail: means any sale, lease, or rental for any purpose other than resale, sublease, or subrent. See Iowa Code 423.1
  • Sales price: means the total amount of consideration, including cash, credit, property, and services, for which personal property or services are sold, leased, or rented, valued in money, whether received in money or otherwise, without any deduction for any of the following:
     (1) The seller's cost of the property sold. See Iowa Code 423.1
  • Sales tax: means the tax levied under subchapter II of this chapter. See Iowa Code 423.1
  • Services: means all acts or services rendered, furnished, or performed, other than services used in processing of tangible personal property for use in retail sales or services, for an employer who pays the wages of an employee for a valuable consideration by any person engaged in any business or occupation specifically enumerated in section 423. See Iowa Code 423.1
  • Specified digital products: means electronically transferred digital audio-visual works, digital audio works, digital books, or other digital products. See Iowa Code 423.1
  • State: means any state of the United States, the District of Columbia, and Puerto Rico. See Iowa Code 423.1
  • Supplies: means tangible personal property, other than computers, computer peripherals, machinery, equipment, or replacement parts, that meets one of the following conditions:
     (a) The tangible personal property is to be connected to a computer, computer peripheral, machinery, or equipment and requires regular replacement because the property is consumed or deteriorates during use, including but not limited to saw blades, drill bits, filters, and other similar items with a short useful life. See Iowa Code 423.3
  • Tangible personal property: includes electricity, water, gas, steam, and prewritten computer software. See Iowa Code 423.1
  • Use: means the exercise of any right or power incidental to the ownership of tobacco products. See Iowa Code 453A.42
  • Use: means and includes the exercise by any person of any right or power over or access to tangible personal property or a specified digital product incident to the ownership of that property, or any right or power over or access to the product or result of a service. See Iowa Code 423.1
  • Use tax: means the tax levied under subchapter III of this chapter. See Iowa Code 423.1
  • Vehicles subject to registration: means any vehicle subject to registration pursuant to section 321. See Iowa Code 423.1
  • vessel: includes a ship, barge, or other waterborne vessel. See Iowa Code 423.3
 2. The sale of tangible personal property, specified digital products, or the furnishing of services in the regular course of business.
 3. Property used in processing. The use of property in processing within the meaning of this subsection shall mean and include any of the following:

 a. Any tangible personal property including containers which it is intended shall, by means of fabrication, compounding, manufacturing, or germination, become an integral part of other tangible personal property intended to be sold ultimately at retail, and containers used in the collection, recovery, or return of empty beverage containers subject to chapter 455C.
 b. Fuel which is consumed in creating power, heat, or steam for processing or for generating electric current.
 c. Chemicals, solvents, sorbents, or reagents, which are directly used and are consumed, dissipated, or depleted in processing tangible personal property which is intended to be sold ultimately at retail, and which may not become a component or integral part of the finished product.
 d. The distribution to the public of free newspapers or shoppers guides shall be deemed a retail sale for purposes of the processing exemption in this subsection.
 4. All articles of tangible personal property and all specified digital products brought into the state of Iowa by a nonresident individual for the individual’s use or enjoyment while within the state.
 5. Services exempt from taxation by the provisions of section 423.3.
 6. Tangible personal property, specified digital products, or services the sales price of which is exempt from the sales tax under section 423.3, except section 423.3, subsections 39 and 73, as it relates to the sale, but not the lease or rental, of vehicles subject only to the issuance of a certificate of title and as it relates to aircraft subject to registration under section 328.20.
 7. Advertisement and promotional material and matter, seed catalogs, envelopes for same, and other similar material temporarily stored in this state which are acquired outside of Iowa and which, subsequent to being brought into this state, are sent outside of Iowa, either singly or physically attached to other tangible personal property sent outside of Iowa.
 8. Tangible personal property which, by means of fabrication, compounding, or manufacturing, becomes an integral part of vehicles, as defined in section 321.1, subsections 41, 64A, 71, 85, and 88, manufactured for lease and actually leased to a lessee for use outside the state of Iowa and the subsequent sole use in Iowa is in interstate commerce or interstate transportation. Vehicles subject to registration which are designed primarily for carrying persons are excluded from this subsection.
 9. Mobile homes and manufactured housing the use of which has previously been subject to the tax imposed under this subchapter and for which that tax has been paid.
 10. Mobile homes to the extent of the portion of the purchase price of the mobile home which is not attributable to the cost of the tangible personal property used in the processing of the mobile home, and manufactured housing to the extent of the purchase price or the installed purchase price of the manufactured housing which is not attributable to the cost of the tangible personal property used in the processing of the manufactured housing. For purposes of this exemption, the portion of the purchase price which is not attributable to the cost of the tangible personal property used in the processing of the mobile home is eighty percent and the portion of the purchase price or installed purchase price which is not attributable to the cost of the tangible personal property used in the processing of the manufactured housing is eighty percent.
 11. Tangible personal property used or to be used as a ship, barge, or waterborne vessel which is used or to be used primarily in or for the transportation of property or cargo for hire on the rivers bordering the state or as materials or parts of such ship, barge, or waterborne vessel.
 12. Aircraft for use in a scheduled interstate federal aviation administration certificated air carrier operation.
 13. Aircraft; tangible personal property permanently affixed or attached as a component part of the aircraft, including but not limited to repair or replacement materials or parts; and all services used for aircraft repair, remodeling, and maintenance services when such services are performed on aircraft, aircraft engines, or aircraft component materials or parts. For the purposes of this exemption, “aircraft” means aircraft used in a scheduled interstate federal aviation administration certificated air carrier operation.
 14. Tangible personal property permanently affixed or attached as a component part of the aircraft, including but not limited to repair or replacement materials or parts; and all services used for aircraft repair, remodeling, and maintenance services when such services are performed on aircraft, aircraft engines, or aircraft component materials or parts. For the purposes of this exemption, “aircraft” means aircraft used in a nonscheduled interstate federal aviation administration certificated air carrier operation operating under 14 C.F.R. ch. 1, pt. 135.
 15. a. Aircraft sold to an aircraft dealer who in turn rents or leases the aircraft if all of the following apply:

 (1) The aircraft is kept in the inventory of the dealer for sale at all times.
 (2) The dealer reserves the right to immediately take the aircraft from the renter or lessee when a buyer is found.
 (3) The renter or lessee is aware that the dealer will immediately take the aircraft when a buyer is found.
 b. If an aircraft exempt under this subsection is used for any purpose other than leasing or renting, or the conditions in paragraph “a”, subparagraphs (1), (2), and (3), are not continuously met, the dealer claiming the exemption under this subsection is liable for the tax that would have been due except for this subsection. The tax shall be computed upon the original purchase price.
 16. The use in this state of building materials, supplies, or equipment, the sale or use of which is not treated as a retail sale or a sale at retail under section 423.2, subsection 1.
 17. Tangible personal property exempt from the use tax as provided in section 29C.24.
 18. Qualifying personal protective equipment and materials which are assembled to become qualifying personal protective equipment. For purposes of this subsection, “qualifying personal protective equipment” means personal protective equipment that is assembled and donated by a person during the period beginning with a state of disaster emergency proclamation by the governor under section 29C.6 and ending one hundred eighty days after the expiration of such proclamation.
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