Iowa Admin. Code r. 701-260.13
Under Iowa Code section 423.3(56), the sales price from the sale of motor fuel, special fuel, and electric fuel consumed for highway use or in watercraft or aircraft where the fuel tax has been imposed and paid, and no refund has been or will be allowed, is exempt from Iowa sales and use tax. Therefore, unless the fuel is used for some other exempt purpose under Iowa Code section 423.3 (e.g., used for processing, used for agricultural purposes, used by an exempt government entity, used by a private nonprofit educational institution), or the fuel is lost through a casualty, the refund of taxes on motor fuel, special fuel, or electric fuel will be reduced by the applicable sales and use tax. Rule 701-220.2 (423) contains more information about sales tax. The sales price upon which the sales and use tax will be applied shall include all federal excise taxes but will not include the Iowa fuel tax.
This rule is intended to implement Iowa Code section 452A.17.
Iowa Admin. Code r. 701-260.13
ARC 2247C, IAB 11/25/15, effective 12/30/15; ARC 5842C, IAB 8/11/21, effective 9/15/21; ARC 6508C, IAB 9/7/22, effective 10/12/22; ARC 7019C, IAB 5/17/23, effective 7/1/23