EFFECTIVEIowaAug 28, 2024Medium✓ Human reviewed

Iowa updated body-shop sales-tax rules for parts, materials, and shop supplies

Iowa Revenue re-adopted Chapter 225 effective August 28, 2024 and changed the body-shop provisions after commenters identified conflicts with the Iowa Code. The current rule distinguishes qualifying resale parts/materials from items consumed by the shop, identifies taxable tools and supplies, and explains invoice treatment for labor, parts, and separately stated materials.

collisionbody shopsales taxresale partsmaterialsinvoicing
What to check

Iowa body shops should verify which repair inputs qualify for resale or exemption, pay tax on shop-consumed tools and supplies, and separately itemize labor, parts, and materials consistently with current rule 701—225.3.

At a glance
LifecycleEffective
PriorityMedium
EffectiveAug 28, 2024
VerifiedSep 24, 2026
Official evidence

Source and verification

Verified
Sep 24, 2026

Informational only; not legal advice. We summarize the regulatory update and link directly to the official source so you can verify it.

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