Iowa DOR Rescinds, Adopts Sales Tax Regulations on Purchases by Businesses

The Iowa Department of Revenue (DOR) July 24 rescinded and adopted new regulations on purchases by businesses for sales and use tax purposes. The regulations provide: 1) that sales by a wholesaler or jobber for a purchaser’s consumption or business use, not for resale, are taxable, even if at wholesale prices or quantities; 2) that the sales price of materials and supplies sold to retail stores for their use and not for resale are subject to tax; 3) the taxability of sales or purchases by building owners, blacksmiths, machine shops, truckers, dental laboratories, supply houses, news and magazine dealers and ...