Heartland Lysine, Inc. v. State, Department of Revenue & Finance

NEUMAN, Justice.

This is a taxpayer’s challenge to the imposition of use taxes on electrical equipment purchased for its plant in Eddyville, Iowa. The taxpayer claims that the equipment taxed is essential to the processing of its product and, therefore, exempt under Iowa Code section 423.4 (1987). The dis trict court upheld the tax on judicial review. We affirm.

Appellant Heartland Lysine, Inc. is one of only two facilities in the country manufacturing lysine, an amino acid used as an additive in swine and poultry feed. Heartland’s modern facility produces the lysine in a two-stage process.…