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Chris does not normally sell motor boats in the regular course of business.

Therefore, the service performed by Don for Chris is taxable.

Sales and use tax will be paid when the property is finally sold to a consumer.

The owner of a retail appliance store hires someone to repair a refrigerator that the owner is going to resell in the store.

Tax is paid by the customer to the original repair shop.

Similar to services for resale, services that recondition or repair tangible personal property are exempt from sales and use tax when that property is normally sold in the regular course of the retailer’s business.

No sales tax is charged to the shop for repairing the radiator since the service was purchased for resale to the owner of the car.A beauty or barber shop purchases shampoo and other items to be used in the performance of its service.Tax is due at the time the shop buys the items from its supplier.The Department makes every attempt to keep this list current.However, please reference 701 IAC chapter 26 for the official listing of taxable services in Iowa.

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