Southern Sioux County Rural Water System, Inc. v. Iowa Department of Revenue

McGIVERIN, Justice.

The questions involved here arose in connection with a decision by respondent Iowa Department of Revenue to deny a refund claim filed by petitioner Southern Sioux County Rural Water System, Inc., for sales tax paid on the purchase of electricity used in its business. The department ruled that certain steps of petitioner’s water treatment and movement operations did not constitute “processing,” and, therefore, the electricity purchased for use in those steps was not exempt from Iowa retail sales tax. On judicial review, the district court affirmed respondent’s decision and…