Computers used by Iowa financial institutions are exempt from Iowa sales tax. IAC 18.58(2)(f) exempts "computers used in the processing or storage of data or information by an insurance company, financial institution or commercial enterprise."
The definition of "computer" includes, among other things, terminals, printers, display units, card readers, tape readers, document sorters, optical readers, and scanners. Replacement parts are also included under the exemption.
If sales tax has been paid on any of these items, IA Form 843 should be completed and filed to obtain a refund. An Iowa Sales Tax Exemption Certificate should be completed and given to the sales representative of any computer sales organization prior to the purchase of computer equipment to avoid Iowa sales tax. The forms are available from the State of Iowa web site:
Iowa Sales Tax Exemption Certificate - www.state.ia.us/tax/forms/22009.pdf
IA Form 843 - Claim for Refund - www.state.ia.us/tax/forms/31014.pdf