Iowa Admin. Code r. 701-214.10
The sales price from the sale or installation of drainage tile that is to be used in disease control or weed control or in health promotion of plants or livestock produced as part of agricultural production for market is exempt from tax. In all other cases, drainage tile will be considered a building material and subject to tax under the provisions of Iowa Code section 423.2. Sales of the following materials associated with the installation of agricultural drainage tile are also exempt from tax: tile intakes, outlet pipes and outlet guards, aluminum and gabion structures, erosion control fabric, water control structures, and tile fittings.
This rule is intended to implement Iowa Code section 423.3.
Iowa Admin. Code r. 701-214.10
ARC 8159C, IAB 7/24/24, effective 8/28/24