In a recent ruling, the Iowa Department of Revenue (DOR) addressed the taxability of genetic testing services provided by CRI Genetics, LLC. The company, based in California, offers DNA-based ancestry and health reports to customers, including those in Iowa. The DOR was asked to clarify whether these services, which involve the use of saliva collection kits, are subject to Iowa sales and use tax.
The DOR determined that the services provided by CRI Genetics, which involve testing human DNA samples, fall under the exclusion for “tests on humans” as outlined in Iowa Code section 423.2(6). As a result, these services are not taxable in Iowa. Additionally, the saliva collection kits, which are essential to the service, are not separately itemized or sold, and therefore, they are not subject to sales or use tax. This ruling provides valuable clarity for businesses offering similar genetic testing services in Iowa. (Declaratory Order Docket# 469782, Iowa Department of Revenue, July 29, 2024)