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Iowa Code section 423.3(104) exempts from sales tax specified digital products, prewritten computer software, and certain enumerated services sold or furnished to a commercial enterprise when used exclusively by the commercial enterprise.
A tax of six percent is imposed upon the sales price of the sale or furnishing of gas, electricity, water, heat, pay television service, and communication service, including the sales price from such sales by any municipal corporation or joint water utility furnishing gas, electricity, water, heat, pay television ...
The Iowa alternative minimum tax is imposed, for the most part, on the same tax preference items and adjustments on which federal alternative minimum tax is imposed. However, you may be subject to Iowa alternative minimum tax even if you have no liability for federal alternative minimum tax.
Iowa Code 423.2(6)(bu) specifically identifies Software-as-a-Service as a service subject to tax. Iowa Code 423.1 defines services. For more information on Iowa's exemption of sales of software and specified digital products to commercial enterprises, click here.
Since 1985, Iowa law has allowed an exemption from sales tax for ?[c]omputers used in processing or storage of data or information by an insurance company, financial institution, or commercial enterprise.? Following the work of the Taxation and Exemption of Computers Task Force, the 2020 legislature defined ?computer ...
Commercial enterprise exemption - Iowa Code section 423.3(104) Beginning January 1, 2019, there is a new sales tax exemption for certain sales to ?commercial enterprises.? For this exemption, a ?commercial enterprise? means any of the following: Businesses and manufacturers (for profit only)
Some customers are exempt from paying sales tax under Iowa law. Examples include government agencies, some nonprofit organizations, and merchants purchasing goods for resale. Sellers are required to collect a valid exemption or resale certificate from buyers to validate each exempt transaction.
If a computer software maintenance or support service contract provides for the performance of nontaxable services and the taxable transfer of tangible personal property, and no separate fee is stated for either the performance of the service or the transfer of the property, then state sales tax of 5 percent shall be ...