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Iowa Exemption for Property in Auto Body Shops


The Iowa Department of Revenue reports that the state has created a new sales and use tax exemption for "property … entirely consumed in connection with the performance of an auto body repair service purchased by the ultimate user." This exemption took effect on May 25, 2012, thanks to Iowa Acts 2012 Senate File 2342.

Exempted Items

Exempt items include, but are not limited to,

  • buffing pads,
  • washers,
  • abrasives,
  • sandpaper,
  • masking tape,
  • solvents.

In order to claim the exemption, auto body shops must submit a completed Iowa Sales Tax Exemption Certificate to their suppliers.

Repair shops in Iowa should charge their customers sales tax for items purchased tax-free.

Sales and use taxes vary from state to state, county to county, city to city. An optimist might say this is one of the wonderful aspects of travel -- encountering different taxes in different areas. It's easy to imagine other reactions.

Read about how auto shops in Indiana must pay sales tax for supplies here.

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Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.