Iowa Businesses Lose Sales and Use Tax Exemption for Computers

Most Iowa businesses won’t be able to claim a sales and use tax exemption on their computer purchases beginning Jan. 1, the state’s Department of Revenue announced Thursday.

Under SF2367, which Gov. Kim Reynolds (R) signed in June, Iowa will eliminate the exemption “for purchases of computers and computer peripherals used in processing or storage of data or information by an insurance company, financial institution, or commercial enterprise,” the department said. As a practical matter, the loss of the exemption applies to all businesses except those using computing equipment for the manufacture of goods.

• The change in ...