IOWA SALES TAX
ON ITEMS SOLD AT FARMERS MARKETS
Q. Are the sales of fruits and vegetables Q. Are the sales of vegetable seeds, plants,
taxable? and fruit trees subject to sales tax?
A. No. Fruits and vegetables sold for human A. If your customer will be consuming the produce
consumption are exempt from tax. Pumpkins are from the seeds, plants or trees, the sale is taxable. If
exempt regardless of their use. the produce from the seeds, plants or trees are grown
by a commercial produce grower or truck gardener
primarily for resale, then the sales of seeds, plants or
trees that produce food are exempt.
Taxable Beverages Exempt Beverages
Alcoholic Beverages are taxable Beverages that contain...
“Alcoholic beverages” means beverages that are milk or milk products
suitable for human consumption and contain one- soy, rice, or similar milk substitutes
half of one percent or more of alcohol by volume.
greater than 50 percent of vegetable or fruit juice
Soft Drinks are taxable by volume
“Soft drinks” means nonalcoholic beverages that Bottled Water is exempt if...
contain natural or artificial sweeteners.
it is effervescent or noneffervescent, soda water,
Bottled Water is taxable if... mineral water
it has any flavoring or sweetener.
Taxable Candy Exempt “Candy”
“Candy” means a preparation of sugar, honey or “Candy” does not include flour as an ingredient. If it
other natural or artificial sweeteners in combination does, it is exempt from Iowa sales tax.
with chocolate, fruits, nuts, or other ingredients or Cookies are not taxable. Neither are items such as
flavorings in the form of bars, drops, or pieces. Twix, even if sold on the candy shelves. Other
Gum is taxable. examples of items that contain flour are Kit Kat bars,
Milky Way bars, M&M Crispy (blue packages),
Reese’s sticks.
31-039a (01/03/08)
Taxable Prepared Foods Exempt Prepared Foods
“Prepared food” means any of the following: “Prepared food” does not include the following.
These items are exempt from sales tax:
Food sold in a heated state or heated by the seller,
including food sold by a caterer. Food that is only sliced by the seller
Two or more food ingredients mixed or combined Food that is only repackaged by the seller
by the seller for sale as a single item. Bakery items sold by the seller that baked them
Food sold with eating utensils provided by the Food sold in an unheated state as a single item
seller, including plates, knives, forks, spoons, without eating utensils provided by the seller
glasses, cups, napkins or straws. which is priced by weight or volume
A List of Taxable Items A List of Additional Exempt Food
Crafts Flowers Cereal Milk
Jewelry T-Shirts Nuts Popcorn
Clothing Artwork Cheese and crackers Pretzels
Prepared Food Chips Soup
Fruit Yogurt
Ice cream products
NonProfit Organizations For answers
If you are a nonprofit organization, please call to your Iowa tax questions:
Taxpayer Services for help determining if your idr@iowa.gov
sales are subject to sales tax. 1-800-367-3388 (Iowa, Omaha, Rock Island, Moline)
or 515-281-3114
www.state.ia.us/tax
Sales Tax Rates are available on the Sign up to receive Iowa tax news by e-mail
department’s Web site at Go to www.state.ia.us/tax and click on the eLists
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Iowa Department of Revenue
31-039b (02/06/07)