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Plumbing Services in Iowa are Taxable

  • Oct 17, 2012 | Gail Cole

Plumbing services in Iowa are subject to sales tax. This fact was recently reviewed and upheld in a letter finding to an Ankeny, Iowa plumbing company.

The company charged certain customers for testing backflow prevention devices. Backflow prevention devices are used to protect potable water supplies from contamination or pollution from non-potable water. The Iowa Department of Revenue determined that "those charges were for a 'plumbing' service."  In Iowa,

"Persons engaged in the business of pipe fitting and plumbing are rendering, furnishing or performing a service, the gross receipts from which are subject to tax."  (701 IAC 26.36 (422)). 

The Petitioner argued that "annual testing of backflow preventers is required by federal and state plumbing codes." The Department of Revenue does not dispute that fact, but does state that such requirements do "not exempt the service from tax." The Petitioner did not provide evidence to the contrary.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
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.