Manufacturing sales tax rule advances
December 10, 2015
The Iowa Department of Revenue on Tuesday presented an update on the proposed rule to clarify the definition of machinery, equipment and replacement parts used in the manufacturing process that are tax exempt. The Administrative Rules Review Committee, a joint committee of the Iowa House and Senate, asked many questions of the department and also accepted public comments. ABI and member companies spoke at the meeting in favor of the rule. Sen. Tom Courtney (D-Burlington) made a motion to block the rule. The motion failed on a 5-5 vote, therefore the rule moves forward. Contracts entered into on/after July 1, 2016 will be exempt from sales and use tax.