Iowa Snow Removal

Snow removal is not subject to sales tax as well the service of applying sand, salt or ice-melt. However, the materials applied are taxable and sales tax is due.

When a snow removal business applies these materials for their customer and does not make a separately itemized charge for them, that business is the consumer of the materials and owes sales tax to its suppliers when they are purchase. No tax is charged to the snow removal business’ customer for services or materials.

The snow removal business may separately state charges to their customer for the materials. If so, the business may be able to purchase the materials for resale and not pay sales tax to its supplier when three conditions are met.

• Business and customer must agree that the product is being sold separately from the service.
• Product must be sold to the customer in a definite form or amount and with a specific price attached.
• Cost of product must be itemized on the bill.

A valid sales tax exemption certificate will be provided by the business to the supplier when purchasing products for resale. In this case, the business must charge sales tax to their customer on the materials.