In a policy letter, the Iowa Department of Revenue determined that the free distributions of flu vaccines are subject to Iowa sales and use tax. The taxpayer was considering a campaign to provide free flu vaccinations, which do not require a prescription, to uninsured persons. The vaccine would be purchased outside of Iowa for subsequent use in Iowa. Therefore, it was determined that this flu vaccine distribution would be a use “incident to ownership” in this state and taxable in the initial instance under Iowa law. It was also noted that the vaccine is not a prescription drug and would not be exempt from Iowa sales and use tax. (Policy Letter No. 09300051, Iowa Department of Revenue, August 17, 2009)