Iowa Admin. Code r. 701-211.18

Current through Regsiter Vol. 46, No. 26, June 12, 2024

Rule 701-211.18 - Machine repair of all kinds

(1)In general. Persons engaged in the business of repairing machines of all kinds are selling a service subject to sales tax.

(2)Definition. For purposes of this rule:

"Machine" means a mechanical device or combination of mechanical powers and devices used to perform some function and produce a certain result or effect. Machines include devices that have moving parts, are operated by hand, and are powered by a motor, engine, or other form of energy.

(3)Musical instruments. For purposes of this rule, a musical instrument does not constitute a machine.

EXAMPLE: Person A owns an electric piano and an acoustic upright piano. Both pianos require repairs; the electric piano needs a new power cord, and the acoustic piano needs keys replaced. The electric piano repair would be taxable under 701-subrule 219.13(8). The repair to the acoustic piano is not taxable.

This rule is intended to implement Iowa Code section 423.2(6)"ae."

Iowa Admin. Code r. 701-211.18

Adopted by IAB November 30, 2022/Volume XLV, Number 11, effective 1/4/2023