Iowa Code r. 701-211.10 - 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(6). The repair to the acoustic piano is not taxable.

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

Notes

Iowa Code r. 701-211.10

ARC 8156C, IAB 7/24/24, effective 8/28/24