reglab/statecodes huggingface dataset:
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 274 - Local Option Sales Tax Urban Renewal Projects › Rule 701-274.2 - Definitions

Current through Register Vol. 47, No. 3, July 24, 2024
For purposes of this chapter, unless the context otherwise
				  requires, the following definitions shall apply:
"Base year"
means the fiscal year during
				  which the ordinance is adopted that provides for funding of an urban renewal
				  project by a designated amount of the increased sales and services tax
				  revenues, as referenced in 239.1(423B).
"Eligible city"
means:
1. A city in which a local sales and services tax imposed by
				  the county applies; or
2. A city whose corporate boundaries include areas of two
				  counties that may impose by ordinance of their city councils a local sales and
				  services tax if all of the following apply:
* At least 85 percent of the residents of the city live in
				  one county.
* The county in which at least 85 percent of the city
				  residents reside has held an election on the question of the imposition of a
				  local sales and services tax and a majority of those voting on the question in
				  the city favored its imposition.
* The city has entered into an agreement on the distribution
				  of the sales and services tax revenues collected from the area where the city
				  tax is imposed with the county where such area is located, and in which an
				  urban renewal area has been designated.
"Local sales and services tax"
means the
				  local tax imposed by a jurisdiction pursuant to an election authorized by Iowa
				  Code section
				  423B.1.
"Retail establishment"
means a business
				  required to obtain a sales tax permit as required by Iowa Code section
				  423.36.
"Retail properties"
means an area of
				  property in which more than one retail establishment is located.
"Urban renewal area"
means a slum area,
				  blighted area, economic development area, or a combination of such areas, which
				  the local governing body designates as appropriate for an urban renewal project
				  as allowed under Iowa Code chapter 403.
"Urban renewal project"
may include
				  undertakings and activities of a municipality in an urban renewal area for the
				  elimination and for the prevention of the development or spread of slums and
				  blight, may include the designation and development of an economic development
				  area in an urban renewal area, and may involve slum clearance and redevelopment
				  in an urban renewal area, or rehabilitation or conservation in an urban renewal
				  area, or any combination or part thereof in accordance with an urban renewal
				  program as allowed under Iowa Code chapter 403.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 274 - Local Option Sales Tax Urban Renewal Projects › Rule 701-274.2 - Establishing Sales and Revenue Growth

Current through Register Vol. 47, No. 3, July 24, 2024
For purposes of establishing the sales amount in the base
				  year and the revenue growth in subsequent fiscal years, the department will
				  calculate sales as described in Iowa Code section
				  423B.10(3).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 274 - Local Option Sales Tax Urban Renewal Projects › Rule 701-274.3 - Establishing Sales and Revenue Growth

Current through Register Vol. 47, No. 3, July 24, 2024
For purposes of establishing the sales amount in the base
				  year and the revenue growth in subsequent fiscal years, the department will
				  calculate sales made by retail establishments located within the urban renewal
				  area.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 274 - Local Option Sales Tax Urban Renewal Projects › Rule 701-274.3 - Requirements for Cities Adopting an Ordinance

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Within at least 90 days following the
				adoption of an ordinance, an eligible city must notify the director of the
				department of revenue of its intent to pursue funding for an urban renewal
				project based upon the increase in local sales and services tax revenue. The
				notification must include the following information:
a. A copy of the resolution of the board of
				supervisors from each county in the urban renewal area from which local sales
				and services tax revenues are to be collected approving the collection and use
				of local sales and services tax;
b.
				A copy of the urban renewal plan and the resolution adopting the city's urban
				renewal plan;
c. A copy of the
				adopted ordinance, including:
(1) The current
				and original, if applicable, purpose or purposes for which the local option
				sales and services tax was enacted; and
(2) The amount and proportion of revenue that
				will be redistributed from each current revenue purpose to fund urban renewal
				within the urban renewal area;
d. The legal description of the urban renewal
				area covered by the ordinance;
e. A
				map showing the geographic boundaries of the urban renewal area; and
f. A geographic information system boundary
				file, if available, showing the geographic boundaries of the urban renewal
				area.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 274 - Local Option Sales Tax Urban Renewal Projects › Rule 701-274.4 - Requirements for Cities Adopting an Ordinance

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Within at least 90 days following the
				adoption of an ordinance, an eligible city must notify the director of the
				department of revenue of its intent to pursue funding for an urban renewal
				project based upon the increase in local sales and services tax revenue. The
				notification must include the following information:
a. Effective July 1, 2012, a copy of the
				resolution of the board of supervisors from each county where the urban renewal
				area from which local sales and services tax revenues are to be collected
				approving the collection and use of local sales and services tax;
b. A copy of the urban renewal plan and the
				resolution adopting the city's urban renewal plan;
c. A copy of the adopted ordinance,
				including:
(1) The current and original, if
				applicable, purpose or purposes for which the local option sales and services
				tax was enacted; and
(2) The amount
				and proportion of revenue that will be redistributed from each current revenue
				purpose to fund urban renewal within the urban renewal area;
d. The legal description of the
				urban renewal area covered by the ordinance;
e. A map showing the geographic boundaries of
				the urban renewal area; and
f. A
				geographic information system boundary file, if available, showing the
				geographic boundaries of the urban renewal area.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 274 - Local Option Sales Tax Urban Renewal Projects › Rule 701-274.4 - Identification of Retail Establishments

Current through Register Vol. 47, No. 3, July 24, 2024
The eligible city shall assist the department of revenue in
				  identifying retail establishments in the urban renewal area that are collecting
				  the local sales and services tax. The department of revenue will identify sales
				  tax permit holders within the urban renewal area using the geographic
				  information system boundary file, if available, provided to the department. If
				  no boundary file is provided, the department will rely upon the map submitted
				  by the eligible city. If any of the urban renewal area boundaries submitted are
				  street centerlines, the information provided to the department shall indicate
				  whether only retail establishments within the bounded area should be considered
				  part of the urban renewal area, or if in addition to the retail establishments
				  within the bounded area, retail establishments immediately adjacent to the
				  bounded area should also be included.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 274 - Local Option Sales Tax Urban Renewal Projects › Rule 701-274.5 - Identification of Retail Establishments

Current through Register Vol. 47, No. 3, July 24, 2024
The eligible city shall assist the department of revenue in
				  identifying retail establishments in the urban renewal area that are collecting
				  the local sales and services tax. The department of revenue will identify sales
				  tax permit holders within the urban renewal area using the geographic
				  information system boundary file, if available, provided to the department. If
				  no boundary file is provided, the department will rely upon the map submitted
				  by the eligible city. If any of the urban renewal area boundaries submitted are
				  street centerlines, the information provided to the department shall indicate
				  whether only retail establishments within the bounded area should be considered
				  part of the urban renewal area, or if in addition to the retail establishments
				  within the bounded area, retail establishments immediately adjacent to the
				  bounded area should also be included.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 274 - Local Option Sales Tax Urban Renewal Projects › Rule 701-274.5 - Calculation of Base Year Taxable Sales Amount

Current through Register Vol. 47, No. 3, July 24, 2024
The calculation of the base year taxable sales amount is as
				  follows:
(1) The base year taxable
				sales and services amount will be the total taxable sales and services subject
				to the local sales and services tax that are made by retail establishments
				within the urban renewal area during the base year.
(2) Taxable sales of tangible personal
				property and services that are subject to the local sales and services tax that
				are made by retail establishments or service providers located within the urban
				renewal area include only those sales that are sourced to the county in which
				the urban renewal area is located.
(3) Those sales made by retail establishments
				or service providers located within the urban renewal area that are sourced
				outside of the county are not subject to the local sales and services tax. For
				sourcing rules, more information can be found in Iowa Code section
				423.15 and 701-Chapter
				205.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 274 - Local Option Sales Tax Urban Renewal Projects › Rule 701-274.6 - Calculation of Base Year Taxable Sales Amount

Current through Register Vol. 47, No. 3, July 24, 2024
The base year taxable sales and services amount will be the
				  total taxable sales and services subject to the local sales and services tax
				  that are made by retail establishments within the urban renewal area during the
				  base year. Taxable sales of tangible personal property and services that are
				  subject to the local sales and services tax that are made by retail
				  establishments or service providers located within the urban renewal area
				  include only those sales that are sourced to the county in which the urban
				  renewal area is located. Those sales made by retail establishments or service
				  providers located within the urban renewal area that are sourced outside of the
				  county are not subject to the local sales and services tax. For sourcing rules,
				  see Iowa Code section
				  423.15 and
				  701-Chapter 223.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 274 - Local Option Sales Tax Urban Renewal Projects › Rule 701-274.6 - Determination of Tax Growth Increment Amount

Current through Register Vol. 47, No. 3, July 24, 2024
The local sales and services tax growth increment amount for
				  the urban renewal area will be computed for each fiscal year following the base
				  year. The annual local option sales and services tax growth increment amount is
				  equal to the current year taxable sales and services subject to the local sales
				  and services tax that are made by retail establishments located in the urban
				  renewal area minus the corresponding base year taxable sales and services
				  amount for the urban renewal area multiplied by the current local sales and
				  services tax rate applicable to the jurisdiction.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 274 - Local Option Sales Tax Urban Renewal Projects › Rule 701-274.7 - Determination of Tax Growth Increment Amount

Current through Register Vol. 47, No. 3, July 24, 2024
The local sales and services tax growth increment amount for
				  the urban renewal area will be computed for each fiscal year following the base
				  year. The annual local option sales and services tax growth increment amount is
				  equal to the current year taxable sales and services subject to the local sales
				  and services tax that are made by retail establishments located in the urban
				  renewal area minus the corresponding base year taxable sales and services
				  amount for the urban renewal area multiplied by the current local sales and
				  services tax rate applicable to the jurisdiction.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 274 - Local Option Sales Tax Urban Renewal Projects › Rule 701-274.7 - Distribution of Tax Base and Growth Increment Amounts

Current through Register Vol. 47, No. 3, July 24, 2024
The revenues from the local sales and services tax growth
				  amount for urban renewal areas in jurisdictions that have enacted ordinances
				  pursuant to Iowa Code section
				  423B.10 shall be determined
				  annually and shall be distributed to the city within 120 days following the end
				  of the fiscal year in which they are collected.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 274 - Local Option Sales Tax Urban Renewal Projects › Rule 701-274.8 - Distribution of Tax Base and Growth Increment Amounts

Current through Register Vol. 47, No. 3, July 24, 2024
The revenues from the local sales and services tax growth
				  amount for urban renewal areas in jurisdictions that have enacted ordinances
				  pursuant to Iowa Code section
				  423B.10
				  shall be determined annually and shall be distributed to the city within 120
				  days following the end of the fiscal year in which they are
				  collected.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 274 - Local Option Sales Tax Urban Renewal Projects › Rule 701-274.9 - Examples

Current through Register Vol. 47, No. 3, July 24, 2024
The following examples illustrate the application of the
				  rules in this chapter:
EXAMPLE 1. City A has an urban renewal area that covers a
				  large portion of its downtown. City A and all of its downtown area are located
				  in County B. City A also has in place a 1 percent local sales and services tax.
				  City A's city council wants to enact an ordinance that establishes the urban
				  renewal area as a local sales and services tax increment district which
				  designates 100 percent of the tax growth increment amount to the special city
				  account. Before City A's city council can establish the local sales and
				  services tax district, County B's board of supervisors must adopt a resolution
				  approving City A's local sales and services tax increment district.
The base year taxable sales amount for the urban renewal area
				  will equal the amount of taxable sales made by retail establishments in the
				  urban renewal area for the fiscal year in which the ordinance was adopted.
				  Assume City A's urban renewal area has $10,050,000 in taxable sales during the
				  2013-2014 fiscal year.
At the end of the fiscal year following the fiscal year in
				  which the ordinance was adopted (June 30, 2015, in this example), City A's
				  urban renewal area has taxable sales of $25,000,000. To determine the tax
				  growth increment amount, the department subtracts the base year taxable sales
				  amount from fiscal year two's taxable sales amount then multiplies the
				  remainder by the local sales and services tax rate of 1 percent as
				  follows:
$25,000,000 - $10,050,000 = $14,950,000
$14,950,000 × .01 = $149,500
The result is a tax growth increment amount of $149,500. The
				  department of revenue will deposit $149,500 into the city's special account no
				  later than November 10 following the end of the fiscal year.
EXAMPLE 2. Same facts as Example 1, but City A's urban
				  renewal area is located in County B and County C. Before City A can enact an
				  ordinance that establishes the urban renewal area as a local sales and services
				  tax increment district, the boards of supervisors from County B and County C
				  must adopt resolutions approving City A's local sales and services tax
				  increment district.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 274 - Local Option Sales Tax Urban Renewal Projects › Rule 701-274.10 - Ordinance Term

Current through Register Vol. 47, No. 3, July 24, 2024
An ordinance under this chapter is repealed when the plan for
				  the urban renewal area expires or terminates or 20 years after adoption of the
				  ordinance, whichever is the earlier.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 275 - Rebate of Iowa Sales Tax Paid › Rule 701-275.2 - Baseball and Softball Complex Sales Tax Rebate

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Generally.
a.
Rebate approval.
An entity whose project pursuant to Iowa Code section
				15F.207 is reviewed and recommended by the economic development authority and
				approved by the enhance Iowa board is entitled to rebates of qualifying sales
				tax in accordance with Iowa Code section
				423.4(10)  and
				this rule, not to exceed the amount awarded by the economic development
				authority.
b.
Qualifying
				rebates.
Qualifying rebates of Iowa state sales tax may be made to the
				owner or operator of a complex as defined in this rule for sales occurring on
				or after the project completion date for a period of ten years or the date the
				award was made, whichever is later. Qualifying rebates are for state sales tax
				only. Local option taxes are not subject to rebate under this
				program.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 275 - Rebate of Iowa Sales Tax Paid › Rule 701-275.3 - Raceway Facility Sales Tax Rebate

Current through Register Vol. 47, No. 3, July 24, 2024
Qualifying rebates of Iowa state sales and use tax may be
				  made to the owner or operator of a raceway facility that meets the requirements
				  of Iowa Code section 423.4(11).
(1)
Definitions.
For
				purposes of this rebate, unless further defined below, the terms used in this
				rule mean the same as defined in Iowa Code section
				423.4(11).
				Additionally, "incurred date" means the date on which the payment for the
				project cost was made or the performance of the work that gave rise to the
				payment occurred, whichever is later.
(2)
Retailer identification.
a.
Identification of
				retailers.
The owner or operator shall provide the identity of all
				retailers at the raceway facility that will be collecting sales tax and provide
				the department with the sales tax permit number for each retailer. During the
				period in which rebates may be claimed, the owner or operator shall keep the
				information current.
b.
Notification to department.
The owner or operator shall notify the
				department within ten days of the termination or start-up of a retailer
				collecting sales tax at the raceway facility. For purposes of this subrule,
				termination occurs when the retailer provides notice to the owner or operator
				that the retailer will no longer collect sales tax at the raceway facility or
				after one calendar year expires since the retailer collected sales tax at the
				raceway facility.
c.
Verification by department.
The department shall verify the identity
				of a retailer collecting sales tax at the raceway facility before rebates are
				paid for sales made by that retailer.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 276 - Facilitating Business Rapid Response to State-declared Disasters › Rule 701-276.1 - Purpose

Current through Register Vol. 47, No. 3, July 24, 2024
The Iowa department of revenue, the Iowa department of
				  homeland security and emergency management and the secretary of state are
				  authorized and tasked by the legislature to jointly administer and oversee
				  mutual aid among the political subdivisions of Iowa, other states and the
				  federal government and to ensure the state government and its departments and
				  agencies facilitate the rapid response of businesses and workers in the state
				  and other states to a disaster.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 276 - Facilitating Business Rapid Response to State-declared Disasters › Rule 701-276.2 - Definitions

Current through Register Vol. 47, No. 3, July 24, 2024
For purposes of this chapter, the definitions from Iowa Code
				  section 29C.24 are adopted by
				  reference.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 276 - Facilitating Business Rapid Response to State-declared Disasters › Rule 701-276.3 - Disaster or Emergency-related Work

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Out-of-state business.
An out-of-state business conducting
				operations within the state solely for the purpose of performing disaster or
				emergency-related work during a disaster response period does not establish a
				level of presence that would subject the out-of-state business to any of the
				requirements and responsibilities listed in Iowa Code section
				29C.24(3)
"a."
(2)
Out-of-state employee.
The performance of disaster or
				emergency-related work during a disaster response period by an out-of-state
				employee is not a basis to determine that the out-of-state employee has
				established residency or a level of presence in Iowa that would subject the
				out-of-state employee to any of the requirements or responsibilities listed in
				Iowa Code section 29C.24(3)
"b."
(3)
After the disaster response period ends.
An out-of-state
				business or out-of-state employee remaining in Iowa after the disaster response
				period for which the disaster or emergency-related work was performed is
				responsible for all taxes, fees, registration, filing or other requirements the
				out-of-state business or out-of-state employee would have been subject to but
				for Iowa Code section 29C.24.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 277 - Sales and Use Tax Refund for Biodiesel Production › Rule 701-277.1 - Biodiesel Production Refund

Current through Register Vol. 47, No. 3, July 24, 2024
A refund of sales or use tax is available for certain
				  producers of biodiesel for calendar year 2012 to the ending year specified in
				  Iowa Code section 423.4(9)
"e."
(1)
Qualifications for the refund.
To be eligible for the refund,
				a biodiesel producer that produces biodiesel in Iowa must meet the criteria
				listed in Iowa Code section 423.4(9)
"a."
(2)
Calculation of the
				refund.
The amount of refund is calculated as described in Iowa Code
				section 423.4(9)
"b"
and up to the number of gallons identified in Iowa Code
				section 423.4(9)
"c."
No refund will be allowed for gallons produced at a
				facility on or after the date identified in Iowa Code section
				423.4(9)
"e."
(3)
Claiming the refund.
In order to claim a refund for each
				calendar quarter, a biodiesel producer must file Form IA 843, Refund Return, on
				which the biodiesel producer will include the number of biodiesel gallons
				produced during the quarter, the calculation of the biodiesel production
				refund, and the amount of biodiesel production refund claimed. The biodiesel
				producer must also timely file all sales and use tax returns due and timely pay
				all sales and use taxes owed on the biodiesel producer's purchases, even when
				the amount of the biodiesel production refund due exceeds the amount of sales
				and use taxes owed for the quarter. The department will reduce the amount of
				the refund issued by the amount of any sales and use taxes owed by the
				biodiesel producer.
EXAMPLE: A biodiesel producer produced 5 million gallons
				  during the first quarter of 2023. The producer also owes $10,000 of Iowa use
				  tax based on purchases made during the first quarter of 2023. In order to claim
				  a refund, the producer must timely file an Iowa sales and use tax return and
				  pay $10,000 of use tax with the return and file Form IA 843, Refund Return, to
				  request a refund of $200,000 (5 million gallons multiplied by 4 cents per
				  gallon) for the first quarter of 2023.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 278 - Refunds for Eligible Businesses Under Economic Development Authority Programs › Rule 701-278.1 - Sales and Use Tax Refund for Eligible Businesses

Current through Register Vol. 47, No. 3, July 24, 2024
For eligible businesses approved under the high quality jobs
				  program or workforce housing tax incentives program by the economic development
				  authority, a refund of sales and use tax is available.
(1)
Sales and use tax eligible for
				refund.
Eligible businesses can receive a refund of the sales and use
				tax paid for those items listed in Iowa Code section
				15.331A to the extent applicable
				for purposes of the particular program.
(2)
Sales and use tax ineligible for
				refund.
The sales and use tax for which the eligible business cannot
				receive a refund consists of the following:
a.
				Any local option sales tax paid is not eligible for the refund. The refund is
				limited to the state sales and use tax paid.
b. Any sales and use tax attributable to
				intangible property, furniture, or furnishings is not eligible for the refund.
				"Furnishings" means any furniture, appliances, equipment, and accessories that
				are movable and with which a room or building is furnished for comfort,
				convenience, or aesthetic value. Examples include rugs, dÃƒ©cor, and
				window coverings. "Furnishings" does not include installed flooring such as
				hardwood, carpet, ceramic, stone, laminate, or vinyl.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 282 - Reeipts Subject to Use Tax Depending on Method of Transaction › Rule 701-282.1 - Transaction Consummated Outside This State

Current through Register Vol. 47, No. 3, July 24, 2024
Iowa use tax applies to purchases of tangible personal
				  property, specified digital products, and services as described in Iowa Code
				  section 423.5 on which sales tax was not
				  collected. This would most commonly occur if the good or service was purchased
				  from a retailer that does not have nexus with Iowa.
This rule is intended to implement Iowa Code section
				  423.5(1).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 282 - Reeipts Subject to Use Tax Depending on Method of Transaction › Rule 701-282.2 - Sales by Federal Government or Agencies to Consumers

Current through Register Vol. 47, No. 3, July 24, 2024
A consumer purchasing tangible personal property, specified
				  digital products, or a taxable enumerated service for use in Iowa from the
				  federal government or any of its agencies is liable for the payment of Iowa use
				  tax and shall report and remit the tax due on a sales and use tax return
				  furnished by the department.
This rule is intended to implement Iowa Code section
				  423.5(1)
"c."
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 282 - Reeipts Subject to Use Tax Depending on Method of Transaction › Rule 701-282.3 - Fuel Consumed in Creating Power, Heat or Steam for Processing or Generating Electric Current

Current through Register Vol. 47, No. 3, July 24, 2024
Tangible personal property purchased outside the state and
				  consumed in creating power, heat or steam for processing tangible personal
				  property or for generating electric current intended to be sold ultimately at
				  retail is exempt from sales and use tax. If the property purchased to be
				  consumed as fuel in creating power, heat or steam for processing is also used
				  in the heating of the factory or office, ventilation of the building, lighting
				  of the premises or for any use other than that of direct processing, that
				  portion of the property so used is subject to use tax.
When buying tangible personal property, part of which is
				  exempt as fuel under the provisions of the law, from an out-of-state seller
				  registered to collect tax for the state, the purchaser shall furnish to such
				  registered seller a written certificate certifying the cost of the property
				  that is to be used for processing and is, therefore, exempt. The certificate
				  shall also show the cost of the property that is not to be used in processing
				  and is, therefore, taxable in order that the registered seller may properly
				  bill the amount of use tax due.
This rule is intended to implement Iowa Code section
				  423.6(3)
"b."
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 282 - Reeipts Subject to Use Tax Depending on Method of Transaction › Rule 701-282.4 - Taxation of Native Americans

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Definitions.
"Native Americans"
means all persons who are
				  descendants of and who are members of any recognized tribe.
"Settlement"
means all lands recognized as a
				  tribal government settlement or reservation within the boundaries of the state
				  of Iowa.
(2)
Use
				tax.
Out-of-state purchases made by Native Americans that are
				purchased for use on a recognized settlement where delivery occurs on a
				settlement to Native Americans who are members of the tribe located on that
				settlement are exempt from tax. Out-of-state purchases made by Native Americans
				where delivery occurs off a recognized settlement are subject to tax even
				though purchased for use on a recognized settlement.
More information on purchases that may be subject to sales
				  tax is found in rule 701-285.8 (423).
This rule is intended to implement Iowa Code section
				  423.6(6).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 282 - Reeipts Subject to Use Tax Depending on Method of Transaction › Rule 701-282.5 - Property Used to Manufacture Certain Vehicles to Be Leased

Current through Register Vol. 47, No. 3, July 24, 2024
Tangible personal property that becomes an integral part of a
				  vehicle as described in Iowa Code section
				  423.6(8)  is
				  exempt from use tax, subject to the limitations provided in Iowa Code section
				  423.6(8).
				  However, this rule does not exempt the sale of the tangible personal property
				  used from the imposition of sales tax under Iowa Code section
				  423.2 if that property is
				  otherwise subject to sales tax.
This rule is intended to implement Iowa Code section
				  423.6(8).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 282 - Reeipts Subject to Use Tax Depending on Method of Transaction › Rule 701-282.6 - Out-of-state Rental of Vehicles Subject to Registration Subsequently Used in Iowa

Current through Register Vol. 47, No. 3, July 24, 2024
The rental of vehicles that do not meet the definition of
				  transportation equipment as defined in Iowa Code section
				  423.15(3)  will
				  be sourced for tax purposes as described in Iowa Code section
				  423.17.
This rule is intended to implement Iowa Code sections
				  423.15(3)  and
				  423.17.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 282 - Reeipts Subject to Use Tax Depending on Method of Transaction › Rule 701-282.8 - Tax Imposed on the Use of Manufactured Housing as Tangible Personal Property and as Real Estate

Current through Register Vol. 47, No. 3, July 24, 2024
Tax is imposed on the use of "manufactured housing" in
				  Iowa.
(1)
Definition.
"Manufactured housing"
means the same as
				  defined in Iowa Code section
				  321.1.
(2)
Tax treatment of manufactured
				housing that is similar to the tax treatment of mobile homes.
a. Manufactured housing is subject to Iowa
				use tax to the extent provided in Iowa Code section
				423.6(10)  and
				shall be paid as provided in Iowa Code section
				423.26A.
b. The use of manufactured housing previously
				subject to tax and upon which the tax has been paid is exempt from further
				tax.
c. The taxation of
				manufactured housing that is sold in the form of tangible personal property is
				similar to the taxation of mobile homes that are sold in the form of tangible
				personal property. More information is contained in rule
				701-282.7
				(423).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 284 - Exempt Sales › Rule 701-284.2 - Fuel Used in Processing-when Exempt

Current through Register Vol. 47, No. 3, July 24, 2024
Receipts from the sale of tangible personal property which is
				  to be consumed as fuel in creating power, heat or steam for processing,
				  including grain drying or for generating electric current, shall be exempt from
				  sales tax.
The exemption provided in the case of tangible personal
				  property consumed as fuel in creating heat applies only when such heat is
				  directly applied in the actual processing of tangible personal property
				  intended to be sold ultimately at retail, as distinguished from heat which is
				  used for the purpose of heating buildings, whether such buildings be
				  manufacturing or processing plants, warehouses or offices.
Chicago, B.
				  & Q. R. Co. v. Iowa State Tax Commission,
259 Iowa 178, 142 N.W.2d
				  407 (1966).
Fuel used in processing is exempt to creameries, dairies or
				  ice cream factories only to the extent that the fuel is used in the actual
				  processing of the finished product. This does not include combustible fuel used
				  for storage after the manufacturing process is completed. For the treatment of
				  electricity or steam used as a fuel or for any other purposes in processing by
				  creameries, dairies, ice cream factories or other processors before, on or
				  after July 1, 1985, see rule 17.3(422,423).
This rule is intended to implement Iowa Code section
				  422.42(3).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 284 - Exempt Sales › Rule 701-284.3 - Processing Exemptions

Current through Register Vol. 47, No. 3, July 24, 2024
Carbon dioxide in a liquid, solid or gaseous form,
				  electricity, steam, or other taxable services to be used in the processing of
				  tangible personal property intended to be sold ultimately at retail are exempt
				  from sales tax.
(1)
Services
				used in processing.
Electricity, steam, or any other taxable service
				is used in processing only if the taxable service is used in any operation
				which subjects raw material to some special treatment which changes, by
				artificial or natural means, the form, context, or condition of the raw
				material and results in a change of the raw material into marketable tangible
				personal property intended to be sold ultimately at retail. The following are
				nonexclusive examples of what would and would not be considered electricity,
				steam or other taxable services used in processing:
a. The gross receipts from the sale of
				electricity or steam consumed as power or used in the actual processing of
				tangible personal property intended to be sold ultimately at retail would be
				exempt from tax. The gross receipts are to be distinguished from those of
				electricity or steam consumed for the purpose of lighting, ventilating, or
				heating manufacturing plants, warehouses, or offices. These latter gross
				receipts would be taxable.
b. The
				gross receipts from electricity used in the freezing of tangible personal
				property, ultimately to be sold at retail, to make the property marketable
				would be exempt from sales tax,
Fischer Artificial Ice & Cold
				Storage Co. v. Iowa State Tax Commission,
81 N.W.2d 437 (Iowa
				1957).
c. Electricity used merely
				in the refrigeration or the holding of tangible personal property for the
				purpose of preventing spoilage or to preserve the property in its present state
				would not be "used in processing" and, therefore, its gross receipts would be
				subject to tax, Fischer Artificial Ice, supra.
d. Prior to July 1, 1995, electricity or
				other fuel used by greenhouses and their related facilities for the purposes of
				growing plants is not under any circumstances fuel which is used in processing,
				and the gross receipts from its sales would be subject to tax. On and after
				July 1, 1995, electricity or other fuel used for heating or cooling of a
				building used in the commercial production of flowering, ornamental, or
				vegetable plants, is exempt from tax. See 701-subrule 18.57(2) for more
				information.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 284 - Exempt Sales › Rule 701-284.5 - Sales to the American Red Cross, the Coast Guard Auxiliary, Navy-marine Corps Relief Society, and U.s.o.

Current through Register Vol. 47, No. 3, July 24, 2024
Receipts from the sale of tangible personal property or from
				  rendering, furnishing, or providing taxable services to the American Red Cross,
				  Coast Guard Auxiliary, Navy-Marine Corps Relief Society, and U.S.O. shall be
				  exempt from sales tax.
Purchases made by the Red Cross, Coast Guard Auxiliary,
				  Navy-Marine Corps Relief Society or U.S.O. outside of Iowa for use in Iowa
				  shall be exempt from use tax.
Department of Employment v. United States,
1966, 385 U.S.
				  355,
				  87 S.Ct. 464, 17L.Ed.2d
				  414.
This rule is intended to implement Iowa Code sections
				  422.45(1),
				  422.45(5), and
				  423.4(4).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 284 - Exempt Sales › Rule 701-284.6 - Sales of Vehicles Subject to Registration-new and Used-by Dealers

Current through Register Vol. 47, No. 3, July 24, 2024
Receipts derived from the sale at retail in Iowa of new and
				  used vehicles subject to registration under the motor vehicle laws of Iowa
				  shall be exempt from sales tax. When the vehicles are registered at the office
				  of the county treasurer or the motor vehicle registration division, Iowa
				  department of transportation, the tax is collected as use tax. Vehicle dealers
				  selling tangible personal property or taxable services in Iowa, in addition to
				  new or used vehicles, shall be required to hold a permit. Upon filing their
				  quarterly returns, dealers shall show the amount of their gross receipts
				  derived from the sale of new and used vehicles subject to registration and
				  shall take appropriate deductions.
The purchaser of a new or used vehicle subject to
				  registration shall be required to pay use tax when the vehicle is registered in
				  Iowa under the Iowa motor vehicle law; and, the county treasurer or the motor
				  vehicle registration division, department of transportation (whichever issues
				  the registration) shall collect use tax.
This rule is intended to implement Iowa Code sections
				  422.45(4),
				  423.7 and
				  423.8.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 284 - Exempt Sales › Rule 701-284.7 - Sales to Certain Federal Corporations

Current through Register Vol. 47, No. 3, July 24, 2024
The department holds that the following are some of the
				  federal corporations immune from the imposition of sales and use tax in
				  connection with their purchases:
1.
				Central Bank for Cooperatives and Banks for Cooperatives
2. Commodity Credit Corporation
3. Farm Credit Banks
4. Farmers Home Administration
5. Federal Credit Unions
6. Federal Crop Insurance
				Corporation
7. Federal Deposit
				Insurance Corporation
8. Federal
				Financing Bank
9. Federal Home Loan
				Banks
10. Federal Intermediate
				Credit Banks
11. Federal Land Banks
				and Federal Land Bank Associations
12. Federal National Mortgage
				Association
13. Federal Reserve
				Bank
14. Federal Savings & Loan
				Insurance Corporation
15.
				Production Credit Association
16.
				Student Loan Marketing Association
17. Tennessee Valley Authority
The federal statutes creating the above corporations contain
				  provisions substantially identical with Section 26 of the Federal Farm Loan Act
				  which has been construed as barring the imposition of state and local sales
				  taxes.
This rule is intended to implement Iowa Code sections
				  422.45(1),
				  422.45(5), and
				  423.4(4).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 284 - Exempt Sales › Rule 701-284.8 - Sales in Interstate Commerce-goods Transported or Shipped From This State

Current through Register Vol. 47, No. 3, July 24, 2024
When tangible personal property is sold within the state and
				  it is transported to a point outside the state, or it is transferred to a
				  common carrier, to the mails, or to parcel post for shipment to a point without
				  the state, sales tax shall not apply, provided the property is not returned to
				  a point within the state except solely in the course of interstate commerce or
				  transportation. See 701-subrule 26.2(3) for a description of an exemption
				  applicable to services performed on the above-described property on or after
				  May 22, 1999.
EXAMPLE: Company A sells point-of-sale computer equipment.
				  The company is located in Des Moines, Iowa. Company A enters into a contract
				  with company B to sell the latter company a large number of point-of-sale
				  computers. Company B is located in Little Rock, Arkansas. A transfers
				  possession of the computers to a common carrier in Des Moines, Iowa, for
				  shipment to B in Little Rock. Sale of the computers is exempt from Iowa sales
				  tax.
(1)
Proof of
				transportation.
The most acceptable proof of transportation outside
				the state shall be:
a. A waybill or bill of
				lading made out to the retailer's order calling for transport; or
b. An insurance or registry receipt issued by
				the United States postal department, or a post office department's receipts;
				or
c. A trip sheet signed by the
				retailer's transport agency which shows the signature and address of the person
				outside the state who received the transported goods.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 284 - Exempt Sales › Rule 701-284.10 - Materials Used for Seed Inoculations

Current through Register Vol. 47, No. 3, July 24, 2024
All forms of inoculation, whether for promotion of better
				  growth and healthier plants or for prevention or cure of mildew of plants or
				  disease of seeds and bulbs, are intended for the same general purpose. Sales
				  tax shall not be imposed on any material used for inoculation.
This rule is intended to implement Iowa Code sections
				  422.42(3) and
				  423.1(1).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 284 - Exempt Sales › Rule 701-284.12 - Coat or Hat Checkrooms

Current through Register Vol. 47, No. 3, July 24, 2024
The operation of a checkroom is not a taxable service or an
				  admission to any amusement or athletic event; therefore, the gross receipts
				  from this operation shall not be included in the gross receipts on which sales
				  tax is computed.
This rule is intended to implement Iowa Code section
				  422.43.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 284 - Exempt Sales › Rule 701-284.13 - Railroad Rolling Stock

Current through Register Vol. 47, No. 3, July 24, 2024
Railroad rolling stock is that portion of railroad property
				  which is incapable of being affixed or annexed on any one place but is wholly
				  intended for movement on rails to transport persons or property whether for
				  hire or not for hire and includes materials and parts used therefor.
				  Locomotives, railroad cars, and materials and parts used therefor shall be
				  exempt from tax. This exemption includes maintenance-of-way equipment which is
				  used to transport persons or property. Also, fuel and lubricants used in
				  railroad rolling stock are materials used in railroad rolling stock and their
				  sales are exempt from tax. Enumerated services are not railroad rolling stock
				  and are not exempt from tax.
This rule is intended to implement Iowa Code section
				  422.45(10).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 284 - Exempt Sales › Rule 701-284.14 - Chemicals, Solvents, Sorbents, or Reagents Used in Processing

Current through Register Vol. 47, No. 3, July 24, 2024
Chemicals, solvents, sorbents, and reagents directly used and
				  consumed, dissipated, or depleted in processing tangible personal property
				  intended to be sold ultimately at retail shall be exempt from sales and use
				  tax. For the purpose of this rule for periods on or after January 1, 1980, free
				  newspapers or shoppers' guides or both are considered to be retail sales for
				  the purpose of the processing exemption.
(1)
Definitions.
a.
"Chemical"
is a substance
				which is primarily used for producing a chemical effect. A chemical effect
				results from a chemical process wherein the number and kind of atoms in a
				molecule are changed in form (e.g., where oxygen and hydrogen are combined to
				make water). A chemical process is distinct from a physical process wherein
				only the state of matter changes (e.g., where water is frozen into ice or
				heated into steam).
b.
"Solvent"
is a substance (usually liquid) primarily used in
				dissolving something; as water is the appropriate solvent of most salts,
				alcohol of resins, and ether of fats.
c.
"Sorbent"
is a substance
				which takes up and holds either by adsorption or absorption. To be a sorbent
				for purpose of the exemption, a substance must be primarily used as a
				sorbent.
d.
"Reagent"
is a substance used for various purposes, (as in
				detecting, examining, or measuring other substances, in preparing materials, in
				developing photographs) because it takes part in one or more chemical reactions
				or biological processes. A reagent is also a substance used to convert one
				substance into another by means of the reaction which it causes. To be a
				reagent for purpose of the exemption, a substance must be primarily used as a
				reagent.
For the purpose of this rule, a catalyst is considered to be
				  a chemical, solvent, sorbent, or reagent. A catalyst is a substance which
				  promotes or initiates a chemical reaction, and as such is exempt from tax if
				  consumed, dissipated, or depleted during processing of tangible personal
				  property which is intended to be ultimately sold at retail.