

If specifically labeled for nonfood use, ice is taxable otherwise, it is exempt from tax.

The following guidelines apply to some of the more unique categories of exempt foods. However, certain items may be difficult to categorize. Most products can easily be classified either as food or food products or as nonfood items.

This list is intended to provide a general understanding of the types of foods that are exempt. Retailer-prepared food for immediate consumption, candy, candy-coated items, candy products, and certain beverages are taxable. Sales of the following types of food products for consumption off the premises of the retailer are exempt from tax. Once a retailer chooses one of these two methods, it applies to all sales by that retailer until the Department of Revenue is notified of a change.

Call the US Department of Agriculture, Food and Nutrition Service at 51 if you have questions about whether or not an item can be purchased with Food Stamps. If a purchase is made using Food Stamps and cash, a retailer may choose to either (1) exempt the entire purchase of eligible food items, or (2) apply the value of the Food Stamps first to eligible food items that otherwise are taxable, charging no tax on the sale of those items while charging sales tax on any remaining items for which cash is paid. When eligible food items are purchased using only Food Stamps, they are exempt from sales tax. Many products are exempt from Iowa sales tax whether or not they are purchased with Food Stamps. The exempt status of the purchase of food is not solely determined by whether the food is eligible for purchase with Food Stamps.
