Iowa law requires a tax exemption form be filled out each time tax is deduced for any reason. Valid reasons for not charging sales tax are listed below;
Farm and ag applications, where the product being bought, is for use on a farm, of at least 5 acres, producing a legal cash crop of any kind. This is fully tax expempt and no tax should charged on this as long as it seems reasonable.
Titled Vehicles are exempt from local options taxes. NO Tax Exemption for if required for this, as it is designed into the law.
Construction Equipment that is; 1) Diesel Powered, 2) Self Propeled, & 3) used primarily for construction, is exempt from local option taxes. However it does require a tax exemption certificat be filled out for each purchase.
There are other reasons to deduct or reduce the sales tax however these most routinely effect the construction industry. Consult your tax accountant for additonal options available to you.
To display and print the form click the form title line above that reads, Iowa Sales Tax Exemption Form, listed above.
