Elimination of Exemption for Insurance Companies, Financial Institutions, and Commercial Enterprises
Previously, Iowa Code section 423.3(47)(a)(4) provided an exemption from sales and use tax on “[c]omputers used in processing or storage of data or information by an insurance company, financial institution, commercial enterprise.” See also Iowa Administrative Code rule 701—215.18 (2023). These entities are defined in Iowa Code section 423.3(47)(d).
The 2022 legislature struck this exemption (see Section 41 of 2022 Iowa Acts, Senate File 2367) effective January 1, 2024.
Certain entities may be eligible for other exemptions on certain purchases.