Starting January 1, 2024, there will be changes to Iowa‘s sales tax exemptions for certain businesses buying computers and computer peripherals. Until December 31, 2023, insurance companies, financial institutions, and some commercial enterprises enjoyed a tax break when purchasing these items for handling data or information storage. However, due to Section 41 of the 2022 Iowa Acts, Senate File 2367, this exemption will end. From January 1, 2024, these purchases by the mentioned entities will be subject to Iowa sales and use tax.
If you want to stay updated on such changes and other guidance from the Department, you can subscribe to their updates on specific tax topics. (Section 41 of 2022 Iowa Acts, Senate File 2367, Iowa Department of Revenue, December 2023)