reglab/statecodes huggingface dataset:
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 201 - Sales and Use Tax Permits › Rule 701-201.12 - Obtaining a New Permit After Revocation

Current through Register Vol. 47, No. 3, July 24, 2024
(1) If a taxpayer's permit is revoked, the
				taxpayer may apply for a new permit. The new permit application will be granted
				or denied based on terms and conditions set forth by the department. Terms and
				conditions include payment of any tax liability that may be due to the
				department.
(2) Upon revocation of a
				sales and use tax permit, the taxpayer will be required to pay all delinquent
				tax liabilities, to file returns, and to refrain from taxable occurrences under
				Iowa Code section 423.2 prior to the issuance of a
				new sales tax permit, and the director may require the taxpayer to post a
				bond.
(3) The director may impose a
				waiting period during which the person must refrain from taxable occurrences
				pursuant to the penalties of Iowa Code section
				423.40, not to exceed 90 days,
				to issue a new permit after a revocation. The department may require a sworn
				affidavit, under penalty of perjury, stating that the person has fulfilled all
				requirements of said order of revocation and stating the dates on which the
				person refrained from taxable occurrences.
(4) Each of the following situations will be
				considered one offense, for the purpose of determining the waiting period to
				reinstate a revoked permit or issue a new permit after a revocation, unless
				otherwise noted:
a. Failure to post a bond as
				required.
b. Failure to file a
				return timely.
c. Failure to pay
				tax timely (including dishonored checks, failure to pay, and late
				payments).
d. Failure to file a
				return and pay tax shown on the return timely (counts as two offenses).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 201 - Sales and Use Tax Permits › Rule 701-201.13 - Withdrawal of Permit

Current through Register Vol. 47, No. 3, July 24, 2024
After investigation, the department will withdraw a permit
				  under the following conditions:
(1)
				Upon a determination that the permit holder cannot be located in the state of
				Iowa and upon failure to obtain service of an order to appear and show cause,
				after sending the notice by registered certified mail or an attempt to
				personally serve the notice of the order.
(2) Upon a determination that the permit
				holder cannot be located in the state of Iowa and upon a determination by the
				department that a business has been terminated or abandoned by the permit
				holder, without a request for cancellation signed by the permit
				holder.
(3) The permit holder has
				become incapacitated or unable to respond or is deceased and has no duly
				appointed trustee, guardian or individual holding a power of attorney, executor
				or administrator. The withdrawal shall not constitute a revocation of said
				license, nor shall any penalties imposed for revocation be applicable. A permit
				so withdrawn shall be reissued in its prior status at such time as any affected
				permit holder so requests. The proceedings for withdrawal will be in conformity
				with Iowa Code section
				17A.18.
This rule is intended to implement Iowa Code section
				  17A.18.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 201 - Sales and Use Tax Permits › Rule 701-201.13 - Administrative Cancellation of Permit

Current through Register Vol. 47, No. 3, July 24, 2024
The department may cancel a permit upon verification by the
				  department that the permit is no longer in use.
This rule is intended to implement Iowa Code section
				  421.17(37).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 202 - Filing Returns and Payment of Tax › Rule 701-202.1 - Sales and Use Tax Return Filing

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
In
				general.
A retailer owing $1,200 or more in sales or use tax per
				calendar year shall file a sales and use tax return once per month. This
				monthly return is due on or before the last day of the month following the end
				of the month in which the tax was collected. A retailer owing less than $1,200
				in sales or use tax per calendar year shall file a sales and use tax return at
				least once per annual year, due on or before January 31 for the prior calendar
				year. A retailer otherwise expected to file a return annually may file a return
				on a monthly basis if the retailer prefers to do so. Every return shall be
				signed and dated.
(2)
New
				retailers.
A retailer who has never held an Iowa sales or use tax
				permit and has never collected or accrued sales or use tax in Iowa shall
				indicate at the time the retailer registers for its permit whether it expects
				to file a return monthly or annually.
(3)
Changes to filing
				frequency.
A retailer registered to file an annual sales and use tax
				return should update its return filing frequency as needed. The department may
				adjust a retailer's filing frequency if the retailer has remitted $1,200 or
				more in its first year of operation in Iowa and the department has notified the
				retailer that it meets or exceeds the filing threshold.
(4)
Calculating the $1,200 filing
				frequency threshold.
The threshold for determining whether a retailer
				should file a monthly or an annual sales and use tax return shall be calculated
				by adding sales and use taxes due in a calendar year. Other excise taxes should
				not be included in the calculation, even though they may be reported on the
				sales and use tax return.
(5)
Electronic filing requirement and exception.
Retailers
				required to file a monthly sales and use tax return shall file the return
				through GovConnectIowa. A retailer who is unable to file a return
				electronically may request permission from the director to file a paper return.
				A retailer requesting such permission shall provide proof of its inability to
				file electronically.
(6)
Simplified electronic return due date.
a. A retailer registered to collect Iowa tax
				through the Streamlined Sales Tax Registration System as a Model 1 seller shall
				file a simplified electronic return on or before the twentieth day of each
				month following the end of the month in which the tax was collected.
b. Any other retailer using the simplified
				electronic return shall file the return on or before the last day of the month
				following the end of the month in which the tax was collected.
This rule is intended to implement Iowa Code section
				  423.31.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 202 - Filing Returns and Payment of Tax › Rule 701-202.2 - Reporting Sales or Use Taxes

Current through Register Vol. 47, No. 3, July 24, 2024
A taxpayer with a reporting obligation for either sales tax
				  or use tax but not both shall affirmatively indicate on the sales and use tax
				  return that the taxpayer has no tax to report for the appropriate tax type. A
				  taxpayer does this by making the appropriate indication on an electronic return
				  or by entering a zero on the taxable amount line in the tax section of a paper
				  return for which the taxpayer does not have tax to report. A taxpayer who fails
				  to do so will be treated as not reporting for that tax type.
This rule is intended to implement Iowa Code section
				  423.31.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 202 - Filing Returns and Payment of Tax › Rule 701-202.3 - Sales and Use Tax Remittance

Current through Register Vol. 47, No. 3, July 24, 2024
Sales or use tax owed by a retailer shall accompany the sales
				  and use tax return for the period in which the tax became due. Retailers filing
				  a monthly sales and use tax return electronically shall remit tax
				  electronically. Retailers filing a paper return may remit tax by mail, payable
				  to the Iowa Department of Revenue. Remittances transmitted electronically are
				  considered to have been made on the date the remittance is completed in
				  GovConnectIowa.
This rule is intended to implement Iowa Code section
				  423.31.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 202 - Filing Returns and Payment of Tax › Rule 701-202.4 - Due Dates, Weekends, and Holidays

Current through Register Vol. 47, No. 3, July 24, 2024
Due dates that fall on a Saturday, Sunday, or holiday shall
				  be treated in accordance with Iowa Code section
				  421.9A. Iowa Code section
				  421.9A contains a definition of
				  "holiday."
This rule is intended to implement Iowa Code section
				  421.9A.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 202 - Filing Returns and Payment of Tax › Rule 701-202.5 - Consolidated Returns

Current through Register Vol. 47, No. 3, July 24, 2024
Two types of permit holders have the option of filing a
				  consolidated return. The first is a permit holder with multiple locations from
				  which taxable sales are made, and the second is certain affiliated
				  corporations.
(1)
Permit
				holders with multiple locations.
A permit holder procuring more than
				one permit may file a separate return for each permit, or if a request to
				consolidate pursuant to Iowa Code section
				423.31(4)  has
				been approved by the department, the permit holder may file one consolidated
				return reporting sales made at all locations for which a permit is
				held.
(2)
Affiliated
				corporations.
Any group consisting of a parent corporation and its
				affiliates, which is entitled to file a consolidated return for federal income
				tax purposes and which makes retail sales of tangible personal property,
				specified digital products, or taxable services, may make an application to the
				director for permission to file a consolidated Iowa sales tax return. The
				application shall:
a. Be in
				writing.
b. Be signed by an officer
				of the parent company.
c. Contain
				the business name, address, federal identification number, and Iowa sales and
				use tax permit number of every corporation seeking the right to file a
				consolidated return.
d. State the
				initial tax period for which the right to file a consolidated return is
				sought.
e. Be filed no later than
				90 days prior to the beginning of the identified initial tax period.
f. Contain any additional relevant
				information that the director may, in individual instances, require.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 202 - Filing Returns and Payment of Tax › Rule 701-202.6 - Direct Pay Permits and Negotiated Rate Agreements

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Direct
				pay permits in general.
Qualified purchasers, users, and consumers of
				tangible personal property, specified digital products, or taxable services
				pursuant to Iowa Code chapter 423 may remit tax owed directly to the department
				instead of having the tax collected and remitted by the seller. A qualified
				purchaser, user, or consumer shall not be granted or exercise this direct pay
				option except upon proper application to the department and only after issuance
				of the direct pay permit by the director of the department or personnel
				authorized by the director.
a.
Qualifications for a direct pay permit.
To qualify for a
				direct pay permit, an applicant will meet all of the following criteria:
(1) Be a purchaser, user, or consumer of
				tangible personal property, specified digital products, or taxable
				services.
(2) Have an accrual of
				sales and use tax liability of more than $8,000 in a month. A purchaser, user,
				or consumer may have more than one business location and can combine the sales
				and use tax liabilities on consumed goods of all locations to meet the
				requirement of $8,000 in sales and use tax liability in a month to qualify if
				the records are located in a centralized location. If a purchaser, user, or
				consumer is combining more than one location, only one direct pay tax return
				for all of the combined locations needs to be filed with the department.
				However, local option sales tax should not be included in the tax base for
				determining qualification for a direct pay permit. If a purchaser, user, or
				consumer has more than one location, but not all locations wish to remit under
				a direct pay permit, the purchaser, user, or consumer will need to indicate
				which locations will be utilizing the direct pay permit at the time of
				application.
(3) Remit tax and file
				returns pursuant to Iowa Code section
				423.31. Paragraph
				202.6(1)
"d"
contains further details.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 202 - Filing Returns and Payment of Tax › Rule 701-202.7 - Regular Permit Holders Responsible for Collection of Tax

Current through Register Vol. 47, No. 3, July 24, 2024
A permit holder may operate by selling merchandise by trucks,
				  canvassers, or itinerant salespeople over fixed routes within the county in
				  which the permanent place of business is located or other counties in this
				  state. When this occurs, the permit holder is liable for reporting and paying
				  tax on these sales. The person doing the selling for the permit holder shall be
				  required to have a form, either in possession or in the vehicle, that
				  authorizes that person to collect tax. This form is obtained from the
				  department and shall contain the name, address, and permit number of the
				  retailer according to the records of the department.
This rule is intended to implement Iowa Code sections
				  423.14 and
				  423.36.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 202 - Filing Returns and Payment of Tax › Rule 701-202.8 - Sale of Business

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Final
				return due.
A retailer selling the business shall file a return within
				the succeeding month and pay all tax due. Any unpaid tax shall be due prior to
				the transfer of title of any personal property to the purchaser, and the tax
				becomes delinquent one month after the sale.
(2)
Record retention.
A
				retailer discontinuing business shall maintain the business's records for a
				period of five years from the date of discontinuing the business unless a
				release from this provision is given by the department. 701-subrule 285.28(2)
				provides for possible sales and use tax consequences relating to the sale of a
				business.
This rule is intended to implement Iowa Code section
				  423.33.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 202 - Filing Returns and Payment of Tax › Rule 701-202.9 - Bankruptcy, Insolvency, or Assignment for Benefit of Creditors

Current through Register Vol. 47, No. 3, July 24, 2024
In cases of bankruptcy, insolvency or assignment for the
				  benefit of creditors by the taxpayer, the taxpayer shall immediately file a
				  return with the tax being due.
This rule is intended to implement Iowa Code section
				  423.31.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 202 - Filing Returns and Payment of Tax › Rule 701-202.10 - Vending Machines and Other Coin-operated Devices

Current through Register Vol. 47, No. 3, July 24, 2024
An operator who places machines on location shall file a
				  return that includes the sales price from sales from all machines or devices
				  operated by the retailer in Iowa during the tax period covered by the return.
				  The mandatory beverage container deposit required under the provisions of Iowa
				  Code chapter 455C shall not be considered part of the sales price.
This rule is intended to implement Iowa Code sections
				  423.1 and
				  423.2.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 202 - Filing Returns and Payment of Tax › Rule 701-202.12 - Immediate Successor Liability for Unpaid Tax

Current through Register Vol. 47, No. 3, July 24, 2024
To ensure all sales or use tax due is paid, Iowa Code section
				  423.33(2) 
				  applies to a retailer selling the retailer's business or stock of goods or
				  ceasing the retailer's business and the immediate successor. For the purpose of
				  this rule, "retailer" includes all persons liable for tax under Iowa Code
				  sections 421.26 and
				  423.33.
(1)
Immediate successors having a
				duty to withhold.
a. An immediate
				successor who, pursuant to a contract of sale, pays a purchase price to a
				retailer in return for the transfer of a going business or a stock of goods is
				obligated to inquire if tax, penalty, or interest is due and to withhold a
				portion of the purchase price to pay the delinquent tax, penalty, or interest,
				if necessary. "Immediate successor" includes but is not limited to the
				following examples:
(1) An entity resulting
				from the action of a sole proprietor who organizes a business in which the sole
				proprietor is the only or the controlling stakeholder.
(2) A sole proprietorship established from an
				entity of which the sole proprietor was the exclusive, majority, or controlling
				stakeholder.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 202 - Filing Returns and Payment of Tax › Rule 701-202.13 - Officers and Partners-personal Liability for Unpaid Tax

Current through Register Vol. 47, No. 3, July 24, 2024
If a retailer or purchaser fails to pay sales tax when due,
				  any officer of a corporation or association, or any partner of a partnership,
				  who has control of, supervision of, or the authority for remitting the sales
				  tax payments and has a substantial legal or equitable interest in the ownership
				  of the corporation or partnership is personally liable for payment of the tax,
				  interest, and penalty if the failure to pay the tax is intentional. This
				  personal liability is not applicable to sales tax due and unpaid on accounts
				  receivable. The dissolution of a corporation, association, or partnership does
				  not discharge a responsible person's liability for failure to pay tax.
(1)
Personal liability-how
				determined.
There are various criteria that can be used to determine
				which officers of a corporation have control of, supervision of, or the
				authority for remitting tax payments. Some criteria are:
a. The duties of officers as outlined in the
				corporate bylaws.
b. The duties
				that various officers have assumed in practice.
c. Which officers are empowered to sign
				checks for the corporation.
d.
				Which officers hire and fire employees.
e. Which officers control the financial
				affairs of the corporation.
(1) An officer in
				control of the financial affairs of a corporation may be characterized as one
				who has final control as to which of the corporation's bills should or should
				not be paid and when bills that had been selected for payment will be
				paid.
(2) "Final control" means a
				significant control over which bills should or should not be paid, rather than
				exclusive control.
(3) The
				observations in paragraph 202.13(1)
"e"
are applicable to
				partnerships as well as corporations.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 202 - Filing Returns and Payment of Tax › Rule 701-202.14 - Sales Tax or Use Tax Paid to Another State

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Equal
				or greater tax paid to another state.
When a person has already paid
				to any other state of the United States a state sales, use, or occupational tax
				on specifically identified tangible personal property or taxable services on
				its sale or use, prior to bringing the property into Iowa, and the tax is equal
				to or greater than the current rate of tax imposed by the Iowa use tax law, no
				additional use tax is due to the state of Iowa by such person.
(2)
Less tax paid to another
				state.
If the amount of tax already paid by such person to any other
				state of the United States on specifically identified tangible personal
				property or taxable services prior to bringing the property into Iowa is less
				than the current rate of tax imposed by Iowa law, use tax shall be due to the
				state of Iowa on the difference in tax paid to the foreign state and the tax
				due under the Iowa law.
(3)
Claiming exemption for tax paid.
When a person claims
				exemption from payment of use tax on the grounds that the tax has already been
				paid to any other state of the United States with respect to the sale or use of
				the property or service in question prior to bringing the property into Iowa,
				the burden of proof is upon that person to show the department, county
				treasurer, or motor vehicle division of the Iowa department of transportation,
				by document, that the tax has been paid.
(4)
Credit not allowed against Iowa
				tax.
Credits shall not be allowed for sales, use, or occupational tax
				already paid in any state of the United States against the Iowa use tax
				relating to the acquisition cost of property being brought into this state when
				such tax already paid was paid on the sales price of lease or rental payments
				of tangible personal property used in another state.
This rule is intended to implement Iowa Code section
				  423.22.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 202 - Filing Returns and Payment of Tax › Rule 701-202.15 - Registered Retailers Selling Tangible Personal Property on a Conditional Sale Contract Basis

Current through Register Vol. 47, No. 3, July 24, 2024
A retailer shall report and remit to the department the full
				  amount of tax computed on the full sale price on the return for the tax period
				  during which the sale was made.
This rule is intended to implement Iowa Code sections
				  423.1 and
				  423.2.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 202 - Filing Returns and Payment of Tax › Rule 701-202.16 - Registered Vendors Repossessing Goods Sold on a Conditional Sale Contract Basis

Current through Register Vol. 47, No. 3, July 24, 2024
A registered retailer repossessing tangible personal property
				  that has been sold on a conditional sale contract basis and remitting use tax
				  to the department on the full purchase price may take a deduction on the
				  retailer's sales and use tax return for the tax period in which the goods were
				  repossessed, in an amount equal to the credit allowed to the purchaser for the
				  goods returned, if the retailer has returned use tax to the purchaser on the
				  unpaid balance.
This rule is intended to implement Iowa Code sections
				  423.1 and
				  423.2.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 202 - Filing Returns and Payment of Tax › Rule 701-202.17 - Returned Merchandise

Current through Register Vol. 47, No. 3, July 24, 2024
When merchandise is sold and returned by a customer who
				  secures an allowance or a return of the full purchase price, the seller may
				  deduct the amount allowed as full credit or refund, provided the merchandise is
				  taxable merchandise and tax has been previously paid on the sales price. No
				  allowance is to be made for the return of any merchandise that (1) is exempt
				  from either sales or use tax, or (2) has not been reported in the taxpayer's
				  tax previously paid.
This rule is intended to implement Iowa Code section
				  423.31.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 203 - Elements Included in and Excluded From a Taxable Sale and Sales Price › Rule 701-203.1 - Tax Not to Be Included in Price

Current through Register Vol. 47, No. 3, July 24, 2024
When a retailer prices an article for retail sale and
				  displays or advertises the same to the public with that price marked, the price
				  so marked or advertised shall include only the sales price of such article
				  unless it is stated on the price tag that the price includes tax.
EXAMPLE. The advertised or marked price is $1. When a sale is
				  made, the purchaser pays or agrees to pay $1.05, which represents the purchase
				  price plus tax, which, when added, becomes a part of the sale price or
				  charge.
This rule does not prohibit advertising or displaying the
				  sale price plus tax or the price including tax, as shown in the following
				  examples:
"This dress-$10 plus tax"; "This dress-$10 plus 50 cents
				  tax"; or "This dress-$10.50 including tax."
When a retailer conspicuously advertises in such manner and
				  position so that it may be readily seen and read by the public that the price
				  "includes tax," the retailer will be allowed to determine sales price by
				  dividing the total of such retailer's price which includes tax by the
				  applicable percentage. For example, a retailer in a jurisdiction that has the
				  state sales tax plus a 1 percent local option tax would use a factor of 106
				  percent.
However, where an invoice is given to the purchaser as a part
				  of the sale, either the invoice must show the tax separately from the
				  retailer's price or it must be stated on each invoice that tax is included in
				  the retailer's price. If the invoice states "tax included," the seller may
				  determine sales price by the applicable percent method described above. It
				  shall be the responsibility of the retailer that uses or has used the
				  applicable percent method for reporting to provide proof that the retailer has
				  complied with the method of advertising or displaying the retailer's price, as
				  described above.
This rule is intended to implement Iowa Code sections
				  423.14
				  and
				  423.24.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 203 - Elements Included in and Excluded From a Taxable Sale and Sales Price › Rule 701-203.1 - Tax Not to Be Included in Price

Current through Register Vol. 47, No. 3, July 24, 2024
When a retailer prices an article for retail sale and
				  displays or advertises the same to the public with that price marked, the price
				  so marked or advertised shall include only the sales price of such article
				  unless it is stated on the price tag that the price includes tax.
EXAMPLE: The advertised or marked price is $1. When a sale is
				  made, the purchaser must pay tax in addition to the $1 sales price or agree to
				  pay $1.07, which represents the purchase price plus state sales tax of 6
				  percent plus local option sales tax of 1 percent, which, when added, becomes a
				  part of the sale price or charge.
This rule does not prohibit advertising or displaying the
				  sale price plus tax or the price including tax, as shown in the following
				  examples:
"This dress-$10 plus tax" or "This dress-$10.70 including
				  tax."
When a retailer conspicuously advertises in such manner and
				  position so that it may be readily seen and read by the public that the price
				  "includes tax," the retailer will be allowed to determine sales price by
				  dividing the total of such retailer's price which includes tax by the
				  applicable percentage. For example, a retailer in a jurisdiction that has the
				  state sales tax rate of 6 percent plus a 1 percent local option tax would use a
				  factor of 107 percent.
However, where an invoice is given to the purchaser as a part
				  of the sale, either the invoice must show the tax separately from the
				  retailer's price or it must be stated on each invoice that tax is included in
				  the retailer's price. If the invoice states "tax included," the seller may
				  determine sales price by the applicable percent method described above. It
				  shall be the responsibility of the retailer that uses or has used the
				  applicable percent method for reporting to provide proof that the retailer has
				  complied with the method of advertising or displaying the retailer's price, as
				  described above.
This rule is intended to implement Iowa Code sections 423.14
				  and 423.24.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 203 - Elements Included in and Excluded From a Taxable Sale and Sales Price › Rule 701-203.2 - Finance Charge

Current through Register Vol. 47, No. 3, July 24, 2024
Interest or other types of additional charges that result
				  from selling on credit or under installment contracts are not subject to sales
				  tax when such charges are separately stated and when such charges are in
				  addition to an established cash sales price. However, if finance charges are
				  not separately stated and a sale is made for a lump sum amount, the tax is due
				  on the total retailer's price.
When interest and other types of additional charges are added
				  as a condition of a sale in order to obtain title rather than as a charge to
				  obtain credit where title to goods has previously passed, such charges will be
				  subject to tax even though they may be separately stated.
State ex rel.
				  Turner v. Younker Bros., Inc.,
210 N.W.2d 550 (Iowa 1973);
Road Machinery Supplies of Minneapolis, Inc. v. The Commissioner of
				  Revenue,
Minnesota Tax Court of Appeals, 1977, 2 Minn. CCH State Tax
				  Reporter II 200-835, 1977 WL 963 (Minn. Tax.). See rule
				  701-213.3(423) relating to
				  conditional sales contracts.
This rule is intended to implement Iowa Code section
				  423.1(47)
"b"
(2).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 203 - Elements Included in and Excluded From a Taxable Sale and Sales Price › Rule 701-203.2 - Finance Charge

Current through Register Vol. 47, No. 3, July 24, 2024
Interest or other types of additional charges that result
				  from selling on credit or under installment contracts are not subject to sales
				  tax when such charges are separately stated and when such charges are in
				  addition to an established cash sales price. However, if finance charges are
				  not separately stated and a sale is made for a lump sum amount, the tax is due
				  on the total retailer's price.
When interest and other types of additional charges are added
				  as a condition of a sale in order to obtain title rather than as a charge to
				  obtain credit where title to goods has previously passed, such charges will be
				  subject to tax even though they may be separately stated. More information is
				  contained in rule 701-213.3 (423), relating to
				  conditional sales contracts.
This rule is intended to implement Iowa Code section
				  423.1(51).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 203 - Elements Included in and Excluded From a Taxable Sale and Sales Price › Rule 701-203.6 - Installation Charges When Tangible Personal Property Is Sold at Retail

Current through Register Vol. 47, No. 3, July 24, 2024
When the sale of tangible personal property includes a charge
				  for installation of the personal property sold, the current rate of tax shall
				  be measured on the entire sales price from the sale. The installation charges
				  would not be taxable if the installation service is not an enumerated service,
				  and where a sales agreement exists, the installation charges are separately
				  contracted. If the written contract contains no provisions separately itemizing
				  such charges, tax is due on the full contract price with no deduction for
				  installation charges, whether or not such installation charges are itemized
				  separately on the invoice.
If the installation services are enumerated services, the
				  installation charges would not be taxable if (1) the services are exempt from
				  tax (e.g., the services are performed on or connected with new construction,
				  reconstruction, alteration, expansion or remodeling of a building or
				  structure); or the services are rendered in connection with the installation of
				  new industrial machinery or equipment, and (2) where a sales agreement exists,
				  the installation charges are separately contracted. If the written contract
				  contains no provisions separately itemizing such charges, tax is due on the
				  full contract price with no deduction for installation charges, whether or not
				  such installation charges are itemized separately on the invoice. If no written
				  contract exists, the installation charges must be separately itemized on the
				  invoice to be exempt from tax. See rule
				  701-219.13 (423).
This rule is intended to implement Iowa Code sections
				  423.1(47)
"a"
(5)
				  and 423.1(47)
"b"
(4).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 203 - Elements Included in and Excluded From a Taxable Sale and Sales Price › Rule 701-203.6 - Installation Charges When Tangible Personal Property Is Sold at Retail

Current through Register Vol. 47, No. 3, July 24, 2024
When the sale of tangible personal property includes a charge
				  for installation of the personal property sold, the current rate of tax shall
				  be measured on the entire sales price from the sale. The installation charges
				  would not be taxable if the installation service is not an enumerated service,
				  and where a sales agreement exists, the installation charges are separately
				  contracted. If the written contract contains no provisions separately itemizing
				  such charges, tax is due on the full contract price with no deduction for
				  installation charges, whether or not such installation charges are itemized
				  separately on the invoice.
If the installation services are enumerated services, the
				  installation charges would not be taxable if (1) the services are exempt from
				  tax (e.g., the services are performed on or connected with new construction,
				  reconstruction, alteration, expansion or remodeling of a building or structure)
				  or the services are rendered in connection with the installation of new
				  industrial machinery or equipment, and (2) where a sales agreement exists, the
				  installation charges are separately contracted. If the written contract
				  contains no provisions separately itemizing such charges, tax is due on the
				  full contract price with no deduction for installation charges, whether or not
				  such installation charges are itemized separately on the invoice. If no written
				  contract exists, the installation charges must be separately itemized on the
				  invoice to be exempt from tax. More information is contained in rule
				  701-219.13 (423).
This rule is intended to implement Iowa Code section
				  423.1(51).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 203 - Elements Included in and Excluded From a Taxable Sale and Sales Price › Rule 701-203.7 - Service Charge and Gratuity

Current through Register Vol. 47, No. 3, July 24, 2024
When the purchase of any food, beverage or meal automatically
				  and invariably results in the inclusion of a mandatory service charge to the
				  total price for such food, beverage or meal, the amounts so included shall be
				  subject to tax. The term "service charge" means either a fixed percentage of
				  the total price of or a charge for food, a beverage or a meal.
The mandatory service charge shall be considered:
(1) a required part of a transaction arising
				from a taxable sale and a contractual obligation of a purchaser to pay to a
				vendor a charge arising directly from and as a condition of the making of the
				sale and
(2) a fixed labor cost
				included in the price for food, a beverage or a meal even though such charge is
				separately stated from the charge for the food, beverage or meal.
When a gratuity is voluntarily given for food, a beverage or
				  a meal, it shall be considered a tip and not subject to tax.
Cohen v.
				  Playboy Club International, Inc.,
19 Ill. App. 3d 215, 311 N.E.2d 336;
Baltimore Country Club, Inc. v. Comptroller of Treasury,
272
				  Md. 65, 321 A.2d 308.
This rule is intended to implement Iowa Code sections
				  423.1(47)
				   and
				  423.2(1).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 203 - Elements Included in and Excluded From a Taxable Sale and Sales Price › Rule 701-203.7 - Service Charge and Gratuity

Current through Register Vol. 47, No. 3, July 24, 2024
When the purchase of any food, beverage or meal automatically
				  and invariably results in the inclusion of a mandatory service charge to the
				  total price for such food, beverage or meal, the amounts so included shall be
				  subject to tax. The term "service charge" means either a fixed percentage of
				  the total price of or a charge for food, a beverage or a meal.
The mandatory service charge shall be considered:
(1) a required part of a transaction arising
				from a taxable sale and a contractual obligation of a purchaser to pay to a
				vendor a charge arising directly from and as a condition of the making of the
				sale and
(2) a fixed labor cost
				included in the price for food, a beverage or a meal even though such charge is
				separately stated from the charge for the food, beverage or meal.
When a gratuity is voluntarily given for food, a beverage or
				  a meal, it shall be considered a tip and not subject to tax.
This rule is intended to implement Iowa Code sections
				  423.1(51)  and
				  423.2(1).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 203 - Elements Included in and Excluded From a Taxable Sale and Sales Price › Rule 701-203.8 - Payment From a Third Party

Current through Register Vol. 47, No. 3, July 24, 2024
The sales price from the sales of tangible personal property,
				  services, or enumerated services includes consideration received by the seller
				  from third parties. The following conditions shall apply:
(1) The seller actually receives
				consideration from a party other than the purchaser, and the consideration is
				directly related to a price reduction or discount on the sale;
(2) The seller has an obligation to pass the
				price reduction or discount through to the purchaser;
(3) The amount of the consideration
				attributable to the sale is fixed and determinable by the seller at the time of
				the sale of the item to the purchaser; and
(4) One of the following criteria is met:
a. The purchaser presents a coupon,
				certificate or other documentation to the seller to claim a price reduction or
				discount where the coupon, certificate or documentation is authorized,
				distributed or granted by a third party with the understanding that the third
				party will reimburse any seller to whom the coupon, certificate or
				documentation is presented;
b. The
				purchaser identifies himself or herself to the seller as a member of a group or
				organization entitled to a price reduction or discount (a "preferred customer"
				card that is available to any patron does not constitute membership in such a
				group); or
c. The price reduction
				or discount is identified as a third-party price reduction or discount on the
				invoice received by the purchaser or on a coupon, certificate or other
				documentation presented by the purchaser.
This rule is intended to implement Iowa Code chapter
				  423.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 203 - Elements Included in and Excluded From a Taxable Sale and Sales Price › Rule 701-203.8 - Payment From a Third Party

Current through Register Vol. 47, No. 3, July 24, 2024
The sales price from the sales of tangible personal property,
				  services, or enumerated services includes consideration received by the seller
				  from third parties. The following conditions shall apply:
(1) The seller actually receives
				consideration from a party other than the purchaser, and the consideration is
				directly related to a price reduction or discount on the sale;
(2) The seller has an obligation to pass the
				price reduction or discount through to the purchaser;
(3) The amount of the consideration
				attributable to the sale is fixed and determinable by the seller at the time of
				the sale of the item to the purchaser; and
(4) One of the following criteria is met:
a. The purchaser presents a coupon,
				certificate or other documentation to the seller to claim a price reduction or
				discount where the coupon, certificate or documentation is authorized,
				distributed or granted by a third party with the understanding that the third
				party will reimburse any seller to whom the coupon, certificate or
				documentation is presented;
b. The
				purchaser self-identifies to the seller as a member of a group or organization
				entitled to a price reduction or discount (a "preferred customer" card that is
				available to any patron does not constitute membership in such a group);
				or
c. The price reduction or
				discount is identified as a third-party price reduction or discount on the
				invoice received by the purchaser or on a coupon, certificate or other
				documentation presented by the purchaser.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 204 - Rules Necessary to Implement the Streamlined Sales and Use Tax Agreement › Rule 701-204.1 - Allowing Use of the Lowest Tax Rate Within a Database Area and Use of the Tax Rate for a Five-digit Area When a Nine-digit Zip Code Cannot Be Used

Current through Register Vol. 47, No. 3, July 24, 2024
Any database maintained by the department that displays tax
				  rates and tax jurisdictional boundaries based on either a five-digit or
				  nine-digit zip code system shall, if an area encompassing one zip code has two
				  or more rates of tax, provide to retailers a means of identifying and applying
				  the lowest rate within the area for use in computing tax due. If a nine-digit
				  zip code designation is not available for a street address or if a seller is
				  unable to determine the nine-digit zip code designation of a purchaser after
				  exercising due diligence to determine the designation, the seller may apply the
				  lowest rate for the five-digit zip code area.
This rule is intended to implement Iowa Code section
				  423.55.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 204 - Rules Necessary to Implement the Streamlined Sales and Use Tax Agreement › Rule 701-204.2 - Permissible Categories of Exemptions

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Definitions.
"Entity-based exemption"
means an exemption
				  based on who purchases the product or who sells the product.
"Product-based exemption"
means an exemption
				  based on the description of the product and not based on who purchases the
				  product or how the purchaser intends to use the product.
"Use-based exemption"
means an exemption
				  based on the purchaser's use of the product.
(2)
Product-based
				exemptions.
Iowa will enact a product-based exemption without
				restriction only if the agreement does not have a definition for the product or
				for a term that includes the product. If the agreement has a definition for the
				product or for a term that includes the product, Iowa will exempt all items
				included within the definition but will not exempt only part of the items
				included within the definition unless the agreement sets out the exemption for
				part of the items as an acceptable variation.
(3)
Entity-based and use-based
				exemptions.
Iowa will enact an entity-based or a use-based exemption
				without restriction only if the agreement has no definition for the product
				whose use or purchase by a specific entity is exempt or for a term that
				includes the product. If the agreement has a definition for the product whose
				use or specific purchase is exempt, Iowa will enact an entity-based or a
				use-based exemption that applies to that product only if the exemption utilizes
				the agreement's definition of the product. If the agreement does not have a
				definition for the product whose use or specific purchase is exempt but has a
				definition for a term that includes the product, Iowa has the power to enact an
				entity-based or a use-based exemption for the product without restriction.
This rule is intended to implement Iowa Code chapter 423,
				  subchapter IV.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 204 - Rules Necessary to Implement the Streamlined Sales and Use Tax Agreement › Rule 701-204.3 - Requirement of Uniformity in the Filing of Returns and Remittance of Funds

Current through Register Vol. 47, No. 3, July 24, 2024
Any model 1, 2, or 3 seller may submit its sales or use tax
				  returns in a simplified format that does not include more data fields than
				  permitted by the governing board. The department will require only one
				  remittance for each return except as otherwise allowed by the agreement. If any
				  additional remittance is required, it will only be required from sellers that
				  have collected more than $30,000 in sales and use taxes in Iowa during the
				  preceding calendar year. The amount of the additional remittance shall be
				  determined through a calculation method rather than actual collections and
				  shall not require the filing of an additional return.
This rule is intended to implement Iowa Code chapter 423,
				  subchapter IV.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 204 - Rules Necessary to Implement the Streamlined Sales and Use Tax Agreement › Rule 701-204.4 - Allocation of Bad Debts

Current through Register Vol. 47, No. 3, July 24, 2024
If a seller is entitled under Iowa Code section
				  423.21 to deduct bad debts owed
				  to the seller and those bad debts consist of any sales price or purchase price
				  upon which tax has been paid to the state of Iowa as well as a state or states
				  other than Iowa, then allocation of the bad debt is allowed. The seller must
				  support an allocation of the bad debts between Iowa and the other state or
				  states through the proper accounting of its books and records.
This rule is intended to implement Iowa Code chapter 423,
				  subchapter IV.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 204 - Rules Necessary to Implement the Streamlined Sales and Use Tax Agreement › Rule 701-204.5 - Purchaser Refund Procedures

Current through Register Vol. 47, No. 3, July 24, 2024
Iowa law allows a purchaser to seek a return of overcollected
				  sales or use taxes from the seller who collected them. More information is
				  contained in Iowa Code section
				  423.45(2). In
				  connection with any purchaser's request of a seller that the seller return
				  sales or use tax alleged to have been overcollected, the seller to whom the
				  request is directed shall be rebuttably presumed to have a reasonable business
				  practice if, in the collection of such sales or use tax, the seller uses either
				  a provider or a system, including a proprietary system, which is certified by
				  this state and has remitted all taxes collected by the use of that provider
				  system to the department, less any deductions, credits, or collection
				  allowances.
This rule is intended to implement Iowa Code chapter 423,
				  subchapter IV.