Iowa Code 423.17 – Sourcing rules for various types of leased or rented equipment which is not transportation equipment
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The lease or rental of motor vehicles, trailers, semitrailers, or aircraft that do not qualify as transportation equipment, as defined in section 423.15, subsection 3, shall be sourced as follows:
1. For a lease or rental that requires recurring periodic payments, each periodic payment is sourced to the primary property location. The primary property location shall be as indicated by an address for the property provided by the lessee that is available to the lessor from its records maintained in the ordinary course of business, when use of this address does not constitute bad faith. This location shall not be altered by intermittent use at different locations.
Terms Used In Iowa Code 423.17
- aircraft: means the same as defined in section 328. See Iowa Code 423.3
- Business: means those businesses conducted for profit, but excludes professions and occupations and nonprofit organizations. See Iowa Code 423.3
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Lease or rental: includes agreements covering motor vehicles and trailers when the amount of consideration may be increased or decreased by reference to the amount realized upon sale or disposition of the property as defined in 26 U. See Iowa Code 423.1
- property: includes personal and real property. See Iowa Code 4.1
- sale: includes a rental. See Iowa Code 423.1
- Use: means and includes the exercise by any person of any right or power over or access to tangible personal property or a specified digital product incident to the ownership of that property, or any right or power over or access to the product or result of a service. See Iowa Code 423.1
- Use tax: means the tax levied under subchapter III of this chapter. See Iowa Code 423.1
2. For a lease or rental that does not require recurring periodic payments, the payment is sourced the same as a retail sale in accordance with the provisions of section 423.15, subsection 1.
3. This section does not affect the imposition or computation of sales or use tax on leases or rentals based on a lump sum or accelerated basis, or on the acquisition of property for lease.