Iowa Admin. Code r. 701-220.2
These taxable sales include garden seeds and plants sold for use in gardens to produce food for human consumption. Seeds and plants eligible for purchase with food coupons include vegetable seeds and food-producing plants such as tomato and green pepper plants and fruit trees, food-producing roots, bushes, and bulbs (e.g., asparagus roots and onion sets) and seeds and plants used to produce spices for use in cooking foods. Sales of all these substances are taxable. Sales of chewing gum are taxable as sales of "candy."
Note: If the product is primarily used as a food or as an ingredient in food, then it is an exempt item; if it is primarily used for medicinal purposes as either a therapeutic agent or a deficiency corrector and only occasionally used as a food, the product is not exempt under this provision.
Bread and flour products
Bottled water, unless it is a sweetened bottled water and thus taxable as a soft drink
Cereal and cereal products
Cocoa and cocoa products, unless taxable in the form of candy as in rule 701-220.3 (423)
Coffee and coffee substitutes, unless taxable as soft drinks; see paragraph 220.2(2)"f"
Dietary substitutes, other than dietary supplements; see paragraph 220.2(2)"c"
Eggs and egg products
Fish and fish products
Frozen foods Fruits and fruit products including fruit juices, unless taxable as soft drinks; see paragraph 220.3(2)"f"
Margarine, butter, and shortening
Meat and meat products
Milk and milk products, including packaged ice cream products
Milk substitutes, such as soy and rice milk substitutes
Spices, condiments, extracts, and artificial food coloring
Sugar and sugar products and substitutes, unless taxable in the form of candy as in rule 701-220.3 (423)
Tea, unless taxable as a soft drink; see paragraph 220.2(2)"f"
Vegetables and vegetable products
Dietary supplements, as their name indicates, serve as supplements to food or food products rather than as "food," and, therefore, are not included within the definition of that word. Since these substances serve as deficiency correctors or therapeutic agents to supplement diets deficient in essential nutrition rather than as foods, they are not eligible for the food and food ingredients exemption. In addition to vitamin and mineral tablets or capsules, this category includes substances such as cod liver oil, which is used primarily as a source of vitamins A and D. It is not possible to provide a comprehensive list of other such items that are primarily used for medicinal purposes or as health aids and that may be stocked by authorized firms.
Taxable soft drinks are noncarbonated water and soda water if naturally or artificially sweetened; soft drinks carbonated and noncarbonated including but not limited to colas, ginger ale, near beer, and root beer; bottled and sweetened tea and coffee; lemonade, orangeade, and all other drinks or punches with natural fruit or vegetable juice less than 50 percent by volume.
Beverage mixes and ingredients intended to be made into soft drinks are taxable. Beverage mixes or ingredients may be liquid or frozen, concentrated or nonconcentrated, dehydrated, powdered, granulated, sweetened or unsweetened, seasoned or unseasoned. Sales of beverage mixes to which a sweetener is to be added before drinking are taxable. Concentrates intended to be made into beverages that contain natural fruit or vegetable juice of less than 50 percent by volume are taxable.
Beverages, the sales of which are otherwise exempt, are taxable if sold as prepared food under rule 701-220.4 (423).
Nondairy coffee "creamers" in liquid, frozen or powdered form are not beverages. Sugar or other artificial or natural sweeteners sold separately are not taxable as beverage ingredients. Specialty foods that are liquids or that are to be added to a liquid and that are intended to be a substitute in the diet for more commonly used food items are not beverages and are not taxable as beverages. These foods include infant formula.
Cosmetics
Household supplies
Paper products
Pet foods and supplies
Soaps and detergents
Tobacco products
Toiletry articles
Tonics
Lunch counter foods or foods prepared for consumption on the premises of the retailer This rule is intended to implement Iowa Code section 423.3(57).
Iowa Admin. Code r. 701-220.2