Cedar Valley Leasing, Inc. v. Iowa Department of Revenue

REYNOLDSON, Chief Justice.

In a contested case proceeding Iowa Department of Revenue held that petitioner, Cedar Valley Leasing, Inc. (Cedar Valley), must pay sales tax on the purchase of equipment used in its leasing business. Cedar Valley lost on judicial review in district court and now appeals here. We affirm.

The operative facts are admitted in the pleadings and stipulated.

Cedar Valley is an Iowa corporation located at Vinton. It leases equipment to farmers on what it terms a “true lease,” not a conditional sales contract. Cedar Valley first locates a farmer who wants to rent a piece of…