Iowa Admin. Code r. 701-215.5

Current through Register Vol. 46, No. 24, May 15, 2024
Rule 701-215.5 - Exempt sales of gases used in the manufacturing process

Sales of argon and other similar gases to be used in the manufacturing process are exempt from tax. For the purposes of this rule, only inert gases are gases that are similar to argon. An "inert gas" is any gas that is normally chemically inactive. It will not support combustion and cannot be used as either a fuel or as an oxidizer. Argon, helium, neon, krypton, radon, and xenon are inert gases. Oxygen, hydrogen, and methane are nonexclusive examples of gases that are not inert. These sales are exempt only if the gas is purchased by a "manufacturer," for use in "processing," as those terms are defined in subrules 230.15(3) and 230.15(4).

This rule is intended to implement Iowa Code section 423.3(52).

Iowa Admin. Code r. 701-215.5

Adopted by IAB August 28, 2019/Volume XLII, Number 5, effective 10/2/2019
Renumbered from 701-230.5 by IAB September 7, 2022/Volume XLV, Number 5, effective 10/12/2022