exemption

exemption
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Iowa Department of Revenue
www.state.ia.us/tax
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Iowa Sales Tax Exemption Certificate
This document is to be completed by a purchaser whenever claiming exemption from sales/use tax.
Certificates are valid for up to three years. Seller: Keep this certificate in your files.
Purchaser: Keep a copy of this certificate for your records. Do not send this to the Department of Revenue.
Purchaser Name
Seller Name
Address
Address
City
State
Zip Code
City
State
Zip Code
General Nature of Business
Telephone Number
Purchaser is claiming exemption for the following reason:
Resale
Purchaser is doing business as a:
Leasing
Processing
Qualifying Farm Machinery/Equipment
Retailer
Sales tax permit no. : ____________________________
Wholesaler
Farmer
Manufacturer
Nonprofit Hospital
Qualifying Industrial Machinery/Equipment
Lessor
Private Nonprofit Educational Institution
Qualifying Replacement Parts
Qualifying Computer
Pollution Control Equipment
Recycling Equipment
Research and Development Equipment
Governmental Agency (including public schools)
Qualifying Residential Care Facility
Direct Pay (permit no. required): __________________
Non-Profit Museum
Other: __________________________________
Other: ____________
Description of Purchase: Attach additional information if necessary. ________________________________________________________________
Under penalty of perjury, I swear or affirm that the information on this form is true and correct.
31-014a (7/13/07)
Signature of Purchaser _________________________________________ Title ___________________________ Date _________________
Exemption Certificate Instructions
This exemption certificate is to be completed by the purchaser claiming exemption from tax and given to the seller. The seller must retain this certificate as
proof that exemption has been properly claimed. The certificate must be complete to be accepted by the seller. The seller can accept an exemption certificate
only on property that is qualified (see the exemptions below) or based on the nature of the buyer. If property or services purchased for resale or processing
are used or disposed of by the purchaser in a nonexempt manner, the purchaser is then responsible for the tax.
Exemptions:
Resale: Any person in the business of selling who is purchasing items to resell may claim this exemption. The purchaser can be acting as either a retailer
or wholesaler and may not be required to have a sales tax permit. Retailers who do have a sales tax permit number must enter it in the space provided.
Processing: Exempt purchases for processing include tangible personal property which by means of fabrication, compounding, manufacturing or germination
becomes an integral part of other tangible personal property ultimately sold at retail; chemicals, solvents, sorbents or reagents used, consumed, dissipated or
depleted in processing personal property intended to be sold ultimately at retail; fuel used to create heat, power or steam for processing or used to generate
electric current; and chemicals used in the production of free newspapers and shoppers.
Qualifying Farm Machinery/Equipment: The farm machinery or equipment must be directly and primarily used in agricultural production; and must be:
1. a self-propelled implement such as a tractor
2. a grain dryer (heater and blower only)
3. an implement customarily drawn or attached to a self-propelled implement in the performance of its function, such as a plow
4. auxiliary equipment improving safety, maintenance and efficiency of items 1, 2, 3
5. tangible personal property that does not become a part of real property used directly and primarily in dairy and livestock operations
6. a replacement part for 1, 2, 3, 4, 5
7. bailing wire, twine, wrapping and other similar items used in agricultural, livestock or dairy production
8. auger systems, curtains, curtain systems, drip systems, fan and fan systems, shutters, inlets and shutter or inlet systems and refrigerators used in livestock
or dairy production, aquaculture production, or the production of flowering, ornamental, or vegetable plants.
Qualifying Industrial Machinery/Equipment: This machinery or equipment must be:
• used by a manufacturer • directly and primarily used in processing tangible personal property or certain other research activities
• certain replacement parts for the above; this does not include supplies
Qualifying Computers:
• sold to commercial enterprise, insurance company, or financial institution
• certain replacement parts; this does not include supplies
Direct Pay: Businesses and individuals who pay their taxes directly to the Department rather than to the seller must enter their Direct Pay permit number in
the space provided.
Private Nonprofit Educational Institutions: Purchases made by private nonprofit educational institutions used for educational purposes are exempt.
NOT EXEMPT from sales tax are purchases by most other private nonprofit organizations such as churches, fraternal organizations, etc., for use
by those organizations.
31-014b (8/21/08)
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