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Sales, Use & Excise Tax

Who are the Designated Exempt Entities?

"Designated Exempt Entity" Includes Only the Following:

  • Private nonprofit educational institution in Iowa
  • Nonprofit private museum in Iowa
  • Tax-certifying or tax-levying body or governmental subdivision of Iowa, including the state board of regents, state department of human services, state department of transportation, and recreational lake and water quality districts
  • Municipally-owned solid waste facility which sells all or part of its processed waste as fuel to a municipally-owned public utility
  • All divisions, boards, commissions, agencies, or instrumentalities of state, tribal, federal, county, or municipal government which do not have earnings going to the benefit of an equity investor or stockholder
  • Habitat for Humanity
  • Rural water districts organized under Iowa Code Chapter 357A
  • An entity that is an instrumentality of a county or municipal government, including an agent of the entity, if the instrumentality or agent was created for the purpose of owning real property located within a reinvestment district established under Iowa Code Chapter 15J. Such entities are entitled to a sales tax exemption on building materials, supplies, or equipment that are completely consumed in the performance of a construction contract to construct a project, which project has been approved by the economic development authority board in accordance with Chapter 15J.
  • A county or district fair organized under Iowa Code Chapter 174.

Nonprofit Hospitals Are NOT Designated Exempt Entities for This Purpose.

Additional Information

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Questions? Contact the Department.