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[2014 | Keywords: Iowa Legislation, Sales Tax, Seed Tenders]

Effective July 1, 2014, fuel and seed tenders will be exempt from Iowa sales tax if equipment is used primarily in agricultural production.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 423.3, subsection 8, Code 2014, is amended by adding the following new paragraph:

NEW PARAGRAPH. d. (1) For purposes of this subsection, the following items are exempt under paragraph “a” when used primarily in agricultural production:
a. A diesel fuel trailer, regardless of the vehicle to which it is to be attached.
b. A seed tender, regardless of the vehicle to which it is to be attached.

(2) For purposes of this paragraph:
a. “Fuel trailer” means a trailer that holds dyed diesel fuel or diesel exhaust fluid and that is used to transport such fuel or fluid to a self-propelled implement of husbandry.
b. “Seed tender” means a trailer that holds seed and that is used to transport seed to an implement of husbandry and load seed into an implement of husbandry.