This spring, the Iowa legislature enacted an Iowa sales tax exemption for grain bins, which Governor Reynolds signed into law on May 3, 2019. This exemption is found in House File 779 and will be effective July 1, 2019.
The new language in Iowa law is:
Iowa Code Section 423.3, Code 2019
NEW SUBSECTION. 16A. a. The sales price from the sale of a grain bin, including material or replacement parts used to construct or repair a grain bin.
b. For purposes of this subsection, “grain bin” means property that is vented and covered with corrugated metal or similar material, and that is primarily used to hold loose grain for drying or storage.
The Department of Revenue will issue an official guidance document this summer. In conversations with the Department, its informal interpretation is that the sales tax exemption will apply to “anything permanently attached” to the bin; in other words, items that would not be “moved from bin to bin.” Examples include floors and augers.
A few important notes:
Individuals from Sukup have been actively working to make grain bins tax-free in Iowa for several years, and we are very pleased to see this positive change made for our dealers who sell to Iowa farmers and customers!
Sukup Manufacturing Co. is the world’s largest family-owned and operated grain storage, drying and handling equipment manufacturer. The company is headquartered in Sheffield, Iowa, and covers 1,000,000 sq. ft. of office, manufacturing and warehouse space. The company employs more than 600 people, making it one of the largest employers in North Central Iowa. Three generations of the family are active in the business.
Sukup’s product line includes on-farm and commercial grain bins; portable, mixed-flow and tower dryers; centrifugal and axial fans and heaters; stirring machines; bin unloading equipment and bin floors and supports. Sukup also manufactures a line of material handling equipment that includes bucket elevators, drag conveyors and chain loop conveyors, as well as a line of steel buildings.
Sukup has six distribution centers located throughout the Midwest. Sukup products are sold throughout the U.S. and Canada, as well as more than 80 foreign countries.
For more information please contact:
Sukup Manufacturing Co.