Iowa Code r. 701-221.5 - Films and other media, exempt rental and sale
(1)
Exempt rental.
a. The sales price from the rental of films,
video and audio tapes or discs, records, photos, copy, scripts, or other media
used for the purpose of transmitting that which can be seen, heard, or read
shall not be taxable if the lessee either:
(1) Imposes a charge for the viewing or
rental of the media and that charge will be subject to Iowa sales or use tax,
or
(2) Broadcasts the contents of
the media for public viewing or listening.
b. The sales price from lessees who are film
exhibitors or who rent discs or other media would ordinarily be exempt from tax
under this rule. The rental of media for reproduction of images into newspapers
or periodicals will not be exempt from tax under this rule since neither of the
criteria in paragraph 221.5(1)"a" or "b" will
occur. The rental of films, video discs, and other media for home viewing is
not exempt from tax.
(2)
Exempt sale. Sales price from the sale to persons regularly
engaged in the business of leasing or renting media of motion picture films,
video and audio tapes or discs, and records, or any other media that can be
seen, heard, or read, are exempt from tax if the ultimate leasing or renting of
the media is subject to Iowa sales or use tax.
This rule is intended to implement Iowa Code section 423.3(41).
Notes
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