Iowa – Amended Definition of Manufacturer

SALT Report 2980 – Recently enacted legislation in Iowa amends the definition of a manufacturer.  Senate File 452 amended section 423.3, subsection 47 to define a manufacturer as “a person who purchases, receives, or holds personal property of any description for the purpose of adding to its value by a process of manufacturing, refining, purifying, combining of different materials, or by the packing of meats, with a view to selling the property for gain or profit, in addition to contract manufacturers.”

In addition, a contract manufacturer is defined in the same way and the definition under section 428.20 no longer applies.  Lastly, language was added to provide that it is not required that a person be primarily engaged in an activity listed in the definition of  a manufacturer in order to qualify as a manufacturer for sales or use tax purposes.

For Further Information

Iowa Department of Revenue – Senate File 452