In a declaratory order issued on June 23, 2008 ( In the Matter of Wartburg College and the City of Waverly, Iowa, docket no. 08-30-6-0124) the Director stated that the receipts from sales of commercial recreation and a limited amount of tangible personal property by Wartburg College are exempt from Iowa sales tax because the “entire proceeds” from those receipts would be expended by Wartburg College for a combination of educational and charitable purposes and because Wartburg College is recognized by the IRS as a 501(c)(3) entity. Because of these circumstances, Iowa Code, § 423.3(78) (2007) excludes Wartburg College from any obligation to collect tax on those proceeds. The Director also declared that the City of Waverly is not a retailer of the commercial recreation and property. The joint Petition for a Declaratory Ruling came about as a result of an agreement between the College and the City providing that Wartburg College would build and operate a “ Wellness Center,” and in return for certain concessions from the City would allow the use of this center to not only its students but also all residents of Waverly.