Form 31-113 is the Iowa sales tax exemption certificate that the Iowa Department of Revenue provides for energy used in processing or agriculture. A purchaser completes it and gives it to the seller of the energy, such as a utility company, so that future energy purchases are exempt from sales tax. It is one of the Iowa sales tax exemption certificates, and this one covers energy only. On this page you can fill out the form online on FillingPDF and download or print the completed PDF; the form itself is published by the Iowa Department of Revenue at revenue.iowa.gov.
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What is 31-113?
Iowa Sales Tax Exemption Certificate (Energy Used in Processing or Agriculture), Form 31-113, is the document a purchaser completes to claim exemption from Iowa sales and use tax on energy consumed in processing or agricultural production, and gives to the seller of that energy.
The form is issued by the Iowa Department of Revenue. The purchaser and the seller are both identified on it. The purchaser also states the fuel purchased (electricity, gas or other), the reason for exemption, the effective date of the certificate, the meter number and utility account number, and the exempt and taxable percentages, which must add up to 100%.
The Department's instructions define energy as heat, steam, electricity, gas, or any other tangible personal property consumed in creating heat, power, steam, or for generating electric current. Energy consumed in processing or agricultural production is exempt. Energy used for general heating, ventilating or lighting of buildings, and any use other than direct processing or agricultural production, is taxable.
The certificate covers future purchases. To get a refund of sales tax already paid on energy used for processing or agriculture for prior periods, the form directs you to use form IA 843 instead. The certificate is kept by the seller and the purchaser; it is not sent to the Department.
Who needs to file 31-113?
Purchasers of energy used in processing or agriculture who want to buy that energy without Iowa sales tax use this certificate. The form says it is completed by the purchaser and provided to the seller of the energy.
- The certificate must be signed by an authorized owner, partner, or corporate officer.
- The reasons for exemption printed on the form are grain drying, raising livestock, generating electricity, data center, processing, manufacturing, and other (specify).
- A purchaser who uses part of the energy for taxable purposes, such as general heating, ventilating or lighting of buildings, reports the exempt percentage and the taxable percentage on the form.
Do not use this form to recover tax already paid for earlier periods: the form directs those purchasers to form IA 843. Sellers do not complete the purchaser's part; the seller's legal name and address are entered by the purchaser, and the seller keeps the certificate in its files.
When to file 31-113
Complete Form 31-113 when you want to exempt future energy purchases from sales tax, and give it to the seller before those purchases. The form states that certificates are valid for up to three years, and the instructions say your utility company will require an updated form at least every three years. The effective date of the exemption is entered on the form itself.
The certificate has no due date to the Department, because it is not filed with it. Separately, a purchaser may petition the Iowa Department of Revenue to review its fuel exemption certificate. If the Department does not review the certificate within 12 months from the date the application for review is made, the fuel exemption certificate is deemed correct.
Documents you need
- Documentation supporting the exemption, provided with the certificate so the seller can accept it; it must be specific when listing processing or agricultural activities.
- A list of all taxable activities within the supporting documentation; these may be combined into general categories such as lighting, office, heating or air conditioning.
- A study showing how the exemption percentage was determined, only if it is impractical to separately meter and bill the energy; it must show taxable and nontaxable use.
- An explanation of the method of purchase and storage, only if the fuel is not metered.
- An energy study or documentation showing how the energy is used, which the instructions say your utility company will need.
How to fill out 31-113
Enter the purchaser's details
Under the purchaser column, enter the purchaser legal name, doing business as, address, city, state and ZIP.
Enter the seller's details
In the seller column, enter the seller legal name, doing business as, address, city, state and ZIP. The seller is the supplier of the energy, such as your utility company.
Describe the business and contact
Write the general nature of business, then the phone number and email address.
Mark the fuel purchased
Check Electricity, Gas or Other; if you check Other, specify the fuel on the line provided.
Select the reason for exemption
Check Grain drying, Raising livestock, Generating electricity, Data center, Processing, Manufacturing or Other. For Other, specify the reason.
Enter the effective date
Under Effective date of the exemption certificate, enter the month, day and year the exemption begins. The certificate is valid for up to three years.
Enter meter and account numbers
Enter the Meter number and the Utility account number for the energy being purchased.
Enter exempt and taxable percentages
Fill in Exempt % and Taxable % so that they total 100%. If you cannot meter production and non-production use separately, prepare a study supporting the percentage.
Sign, title and date
An authorized owner, partner, or corporate officer signs, then enters title and date. This is the declaration under penalties of perjury or false certificate.
Review, download and assemble the package
Check every entry, then download or print the completed PDF from FillingPDF. Add the supporting documentation and give the package to the seller as described under How to submit; keep a copy.
How to submit 31-113
Form 31-113 is not filed with the state: you give the signed certificate, with its supporting documentation, to the seller of the energy, such as your utility company or supplier.
- Give it to the seller. The instructions say to complete the certificate and give it to your supplier. The seller must receive the supporting documentation with it in order to accept the exemption.
- Keep copies. The seller keeps the certificate in its files, and the purchaser keeps a copy for its records.
- Do not mail it to the Department. The form states: do not send this certificate to the Iowa Department of Revenue.
The form names no mailing address or portal. Questions about the exemption go to the Iowa Department of Revenue through revenue.iowa.gov. FillingPDF lets you fill out and download the PDF; submission follows the channels above.
Common mistakes to avoid
- Sending the certificate to the Iowa Department of Revenue; the form says not to, and the seller keeps it in its files.
- Giving the seller the certificate without documentation supporting the exemption, which the seller needs in order to accept it.
- Leaving an unsupported exempt percentage when energy is not separately metered; the certificate must be backed by a study showing how the percentage was determined.
- Listing processing or agricultural activities in vague terms; the documentation must be specific for those activities.
- Treating general heating, ventilating or lighting of buildings as exempt; the instructions say that use is taxable.
- Entering exempt and taxable percentages that do not add up to 100%.
- Signing by someone who is not an authorized owner, partner, or corporate officer.
- Using this certificate to get back tax paid for prior periods instead of form IA 843.
- Letting the certificate lapse; it is valid for up to three years and the utility company requires an update at least every three years.
Frequently asked questions
What is the Iowa sales tax exemption certificate for energy?
Form 31-113 is the Iowa Department of Revenue certificate a purchaser gives to the seller of energy to claim exemption from sales and use tax on energy used in processing or agriculture. It applies to future purchases, not to tax already paid.
Do I send Form 31-113 to the Iowa Department of Revenue?
No. The form says not to send it to the Department. You give it to the seller of the energy with the supporting documentation; the seller keeps it in its files and you keep a copy for your records.
How long is the Iowa energy exemption certificate valid?
Certificates are valid for up to three years. The instructions add that your utility company will require an updated form at least every three years, along with an energy study or documentation showing how the energy is used.
Who has to sign Form 31-113?
The form must be signed by an authorized owner, partner, or corporate officer. The signature block also asks for the signer's title and the date, under a declaration made under penalties of perjury or false certificate.
How do I get a refund of sales tax I already paid on energy?
Use form IA 843. Form 31-113 only exempts future purchases from sales tax; the form states that a refund of sales tax paid for prior periods on energy used for processing or agriculture is requested on form IA 843.
How do I figure the exempt percentage on Form 31-113?
Separate meters for production and non-production use are ideal. If that is impractical, the certificate must be supported by a study showing the taxable and nontaxable use. The Department's website has worksheets for electricity and natural gas percentages.
Is energy for heating or lighting a building exempt?
No. The instructions say energy used for general heating, ventilating or lighting of buildings, and any use other than direct processing or agricultural production, is taxable. Only energy consumed in processing or agricultural production is exempt.
Can I fill out the Iowa sales tax exemption certificate online?
You can fill out the Form 31-113 PDF online on FillingPDF and download or print it. FillingPDF is an independent service and does not submit the certificate for you; you give it to the seller with the supporting documentation.
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