Iowa Court of Appeals Affirms Denial of Sales Tax Refund to Health Enterprises

The Iowa Court of Appeals Feb. 19 affirmed the Iowa Department of Revenue’s denial of two sales tax refund claims filed by Health Enterprises of Iowa, an unlicensed nonprofit corporation providing services to Iowa hospitals. The Court found that Iowa Code section 423.3(27), which exempts sales to nonprofit hospitals licensed under chapter 135B, unambiguously requires the taxpayer itself to be a licensed nonprofit hospital. The Court rejected Health Enterprises’ argument that it should qualify for the exemption based on its relationship with member hospitals. The Court declined to address Health Enterprises’ factual claims, finding they were not preserved for appellate ...