V-10 State Sales Tax on Goods and Services 

(Amended 9/22/22)

Effective September 22, 2022, this policy has been revised. For the most current version without redlining, return to V-10.

The university is exempt from paying sales tax on the gross receipts from goods and services rendered in fulfilling its purpose as an educational institution. Taxes are collected on the gross receipts of any activities for which an admission fee is charged, including athletic events, theater, concerts, student organization activities, and others. The university collects sales tax on sales of goods, food, and services which are available to the general public.

The university — as an agency or instrumentality of the State of Iowa as provided by Iowa Code 423.3(31) —  is exempt from paying Iowa sales tax on purchases used for public purposes. The university is exempt from collecting Iowa sales tax on sales to its customers located in Iowa where the entire profits from those sales are expended for educational or charitable purposes as provided by Iowa Code 423.3(78) and Iowa Administrative Code [701]17.1(6). This exemption does not apply to ticket sales for athletic events, which are specifically taxable by the Iowa Code regardless of how the proceeds are expended.

(See also IC 422.)