DOR Releases Computer, Computer Peripherals Tax Guidance
January 21, 2021
On Monday, the Iowa Department of Revenue (DOR) unveiled guidance related to sales tax treatment of computers and computer peripherals. The guidance comes as the Legislature defined the term “computer peripheral” in 2020 and added that term to the existing sales tax exemption for computers used in processing or storage of data or information by an insurance company, financial institution or commercial enterprise. The guidance has been issued to ensure taxpayers know which devices are taxable or exempt as a computer or computer peripherals. ABI Senior Vice President Nicole Crain served on a task force two years ago that provided recommendations to the Legislature as they sought to define the term.