(1)
In general. Persons
engaged in the business of solid waste collection and disposal are selling a
service subject to sales tax.
(2)
Definitions. For purposes of this rule:
"Nonresidential commercial operation" means
any operation that is an industrial, commercial, agricultural, or mining
operation, whether for profit or not. "Commercial" refers to those involved in
the buying and selling of goods and services, rather than just meaning a
for-profit operation.
1.
"Nonresidential commercial operation" includes but is not limited to hotels,
motels, restaurants, realtors, professional firms (doctors, lawyers,
accountants, or dentists), repair persons, persons selling and renting all
sorts of tangible personal property, persons selling insurance of any kind,
appraisers, skilled trades (e.g., plumbers, carpenters, and electricians),
construction contractors, banks, savings and loans, barbers and beauticians,
day care centers, counseling services, employment agencies, janitorial
services, landscapers, painters, pest control, photography, printing, and
storage services. Also included within the meaning of nonresidential commercial
operation are the United Way, the American Cancer Society, the Elks, Masons,
houses of worship (e.g., churches, synagogues, and mosques), and not-for-profit
hospitals that are not licensed under Iowa Code chapter 135B.
2. "Nonresidential commercial operation" does
not include apartment complexes, mobile home parks, manufactured home
communities, and single-family or multifamily dwellings. Also excluded from the
meaning are nonprofit hospitals licensed pursuant to Iowa Code chapter
135B.
"Recyclable material" includes but is not
limited to used motor oil, paper, glass, metals (e.g., copper, aluminum, and
iron), and batteries, as long as the recycled materials are separated from the
solid waste for the purpose of recycling the materials.
"Recycling facilities" means facilities
where recyclable materials are separated or processed for the purpose of
reusing a material in its original form or using it in a manufacturing process
that will not cause the destruction of the recyclable material to preclude its
further use. A facility that produces insulation from used glass would qualify
as a recycling facility under this rule, while a facility that separates or
processes recyclable materials for use as fuel would not qualify as a recycling
facility under this rule.
"Solid waste" means the same as defined in
Iowa Code section 423.2(7).
(3)
Nonresidential commercial
operations. Counties, municipalities, and cities that provide the
service of solid waste collection and disposal to nonresidential commercial
operations are obligated to collect and remit the tax from these services.
Additionally, any person who has contracted to provide solid waste collection
and disposal service to a city or municipality is obligated to collect and
remit the tax from those services provided to nonresidential commercial
operations located within that city or municipality. If the solid waste
collection and disposal service is rendered to multiple businesses or
organizations, tax must be collected and remitted only on those portions that
meet the definition of nonresidential commercial operations.
(4)
Bundled transaction of solid
waste collections and disposal services. 701-Chapter 206 contains more
information on bundled transactions regarding when both taxable and nontaxable
solid waste collection and services are provided to a customer.
(5)
Disposal or tipping
charges.
a.
Taxable.
Charges for disposal or tipping of solid waste are also subject to sales tax.
Persons or businesses that transport their own solid waste and persons who
transport, without compensation, solid waste generated by another must pay the
required tax upon the disposal or tipping charge or fee imposed by the
collection or disposal facility.
b.
Exempt. Charges or fees imposed for the service of collecting
and managing recyclable material separated from solid waste by a waste
generator are not subject to sales tax.
(6)
Recycling facilities.
The sales price of the service of solid waste collection and disposal provided
to recycling facilities that separate or process recyclable materials is not
subject to sales tax if, as a result of the separation or processing, the
volume of the waste collected is reduced by 85 percent and the waste is
collected and disposed of separately from other solid waste.
This rule is intended to implement Iowa Code section
423.2(7).
