Common use of Iowa Construction Sales Tax Exemption Clause in Contracts

Iowa Construction Sales Tax Exemption. Certificates and authorization letters will be provided by the Owner to the Construction Manager and Subcontractors for use on this project in accordance with the regulations of the Iowa Department of Revenue and Finance. This exemption certificate will authorize suppliers to sell construction materials that will be incorporated into and made part of the Work exempt from Iowa sales tax and any applicable local option sales tax and school infrastructure local option sales tax. Complete information on qualifying materials can be found on the Iowa Department of Revenue and Finance web site at xxx.xxxxx.xx.xx/xxx. It is the responsibility of the Construction Manager and Subcontractors to maintain records identifying the materials purchased and verifying they were used on this project. Any materials purchased tax-free and not used on the project are subject to sales and local option taxes and these taxes must be paid directly to the Iowa Department of Revenue and Finance.