Iowa Admin. Code r. 701—210.3(423) — Tangible personal property and specified digital products purchased for resale but incidentally consumed by the purchaser

A retailer engaged in the business of selling tangible personal property or specified digital products who takes merchandise from stock for personal use, consumption, or gifts shall report these items as “goods consumed” on the sales and use tax return and remit sales tax and any applicable local option sales tax on the purchase cost of the items. This rule does not authorize purchase for resale of items intended to be used by the retailer.