Sorg v. Iowa Department of Revenue

REYNOLDSON, Chief Justice.

The question in this appeal is whether appellant N. F. Sorg, by permitting customers of area merchants to park without charge on his property, is operating a “parking lot” under our retail sales tax law. If so, Sorg must pay tax on sums contributed by those merchants for care, maintenance and use of the lot. District court affirmed the Department of Revenue director’s order sustaining the sales tax assessment. We reverse.

Section 422.43, The Code 1975, imposes a three percent tax upon gross receipts from, among other things, the rendering, furnishing, or performing of…