Iowa—Exemptions for the Automotive Industry

SALT Report 1537 – The Iowa State Legislature recently enacted legislation that provides sales and use tax exemptions for the automotive industry.  Effective May 25, 2012, the following items will be exempt from Iowa sales and use tax:
  • Water, electricity, chemicals, solvents, sorbents, and reagents purchased for use in the vehicle wash and wax service industry, and
  • Auto body repair materials that are entirely consumed in connection with an auto body repair service
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