reglab/statecodes huggingface dataset:
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 31 - Receipts Subject to Use Tax › Rule 701-31.3 - Sales by Federal Government or Agencies to Consumers

Current through Register Vol. 47, No. 3, July 24, 2024
A consumer purchasing tangible personal property or an
				  enumerated taxable service for use in Iowa from the federal government or any
				  of its agencies shall be liable for the payment of Iowa consumer's use tax and
				  shall report and remit the tax due on a consumer's tax return which is
				  furnished by the department.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 31 - Receipts Subject to Use Tax › Rule 701-31.4 - Sales for Lease of Vehicles Subject to Registration-taxation and Exemptions

Current through Register Vol. 47, No. 3, July 24, 2024
When vehicles subject to registration are sold for subsequent
				  lease, use tax is due in the initial instance. However, several important
				  exemptions exist which are applicable to the sale for subsequent lease of
				  vehicles subject to registration. The exemption applicable to sales of other
				  leased property is not applicable to sales of vehicles subject to registration
				  for subsequent lease. The following circumstances should be kept in mind when
				  purchasing a vehicle subject to registration for subsequent lease:
1. The purchase of certain motor vehicles for
				long-term lease of more than 60 days, but less than 12 months, is not exempt
				from use tax. See 701-subrule 26.68(2) relating to taxation of long-term
				leases.
2. Effective January 1,
				1997, the purchase of a vehicles subject to registration with a gross vehicle
				weight rating of less than 16,000 pounds, excluding motorcycles and motor
				bicycles, if actually leased for a period of 12 months or more is exempt from
				use tax. See
				701-315.
				(423) and
				701-3211.
				(423) relating to taxation of long-term leases.
3. The purchase of "automobiles" for
				short-term, taxable lease is exempt from tax. See rule
				701-3211.
				(423) and 701-Chapter 27 for specific information concerning this
				exemption.
4. See rule
				701-329.
				(423) for the specifics of an exemption applicable to trucks commonly known as
				tractors and semitrailers purchased for lease with the subsequent sole use in
				Iowa in interstate commerce.
5. The
				exemption from tax allowed for the use of tangible personal property by a
				person regularly engaged in the business of leasing if the period of the lease
				is for more than five months and the leasing of the property is subject to
				sales tax is not applicable to vehicles subject to registration.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 31 - Receipts Subject to Use Tax › Rule 701-31.6 - Sales of Aircraft Subject to Registration

Current through Register Vol. 47, No. 3, July 24, 2024
On and after July 1, 1999, taxable sales in Iowa of aircraft
				  subject to registration under Iowa Code section
				  32820.
				  are subject to Iowa use tax and not Iowa sales tax. This use tax is to be
				  collected by the Iowa department of transportation at the time of the
				  aircraft's registration. The sale of an aircraft subject to registration is not
				  subject to local option sales tax, either that imposed by Iowa Code chapter
				  422B or that imposed by Iowa Code chapter 422E. For the purposes of this rule,
				  an "aircraft" is any contrivance now known, or hereafter invented, used or
				  designed for navigation of or flight in the air, for the purpose of
				  transporting persons or property, or both. See rule
				  701-3213.
				  (423) for exemptions applicable to aircraft subject only to use tax.
This rule is intended to implement Iowa Code section
				  4232. as amended by
				  1999 Iowa Acts, chapter 168.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 31 - Receipts Subject to Use Tax › Rule 701-31.7 - Communication Services

Current through Register Vol. 47, No. 3, July 24, 2024
On and after July 1, 2001, the purchase price of
				  communication service furnished or delivered to consumers or users within Iowa
				  is subject to use tax. For the purposes of Iowa use tax law, communication
				  service is defined to be tangible personal property. Tax will be imposed if the
				  billing for the communication service is dated on or after July I, 2001. See
				  rule
				  701-1820.
				  (422,423) for an explanation of the sales tax on communication services and for
				  an explanation of excise tax on communication services generally.
This rule is intended to implement Iowa code subsection
				  4231(12). as amended
				  by 2001 Iowa Acts, House File 736.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 32 - Receipts Exempt From Use Tax › Rule 701-32.1 - Tangible Personal Property and Taxable Services Subject to Sales Tax

Current through Register Vol. 47, No. 3, July 24, 2024
The gross receipts from the sale of tangible personal
				  property which are subject to the imposition of sales tax under Iowa Code
				  chapter 422 shall be exempt from use tax if the sales tax has been paid to the
				  department or to a retailer This shall not apply to vehicles subject to
				  registration or the purchase of a taxable service enumerated in Iowa Code
				  section 422.43 prior to July I, 1994. On and after that date the rendering,
				  furnishing, or performing of a service taxable under Iowa Code chapter 422
				  shall be exempt from use tax if the sales tax has been paid to the department
				  or to a retailer. Prior to, on, and after July I, 1994, either a sales tax or a
				  use tax, but not both, shall be imposed upon the use in Iowa of services
				  rendered, furnished, or performed in this state.
This rule is intended to implement Iowa Code subsection
				  4234(1)..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 32 - Receipts Exempt From Use Tax › Rule 701-32.2 - Sales Tax Exemptions Applicable to Use Tax

Current through Register Vol. 47, No. 3, July 24, 2024
When an exemption is allowed for sales tax purposes to any
				  sale of tangible personal property the same shall apply for use tax, except for
				  the exemptions provided in Iowa Code section 422.45, subsections 4 and 6, as
				  they relate to vehicles subject to registration. On and after July 1, 2001, if
				  any exemption from sales tax is allowed when a service is rendered, furnished,
				  or performed, including the service of tangible personal property rental, the
				  same exemption shall apply to any service subject to use tax.
This rule is intended to implement Iowa Code subsection
				  4234(3). and subsection
				  4234(4). as amended by
				  2001 Iowa Acts, House File 715.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 32 - Receipts Exempt From Use Tax › Rule 701-32.5 - Exemption for Transactions if Sales Tax Paid

Current through Register Vol. 47, No. 3, July 24, 2024
As of July 1, 1986, the use of tangible personal property is
				  exempt from tax if the gross receipts from the sale of that property are
				  subject to Iowa sales tax and if the sales tax has been paid either to a
				  retailer or to the department. The exemption does not include vehicles subject
				  to registration or subject only to the issuance of a certificate of
				  title.
This rule is intended to implement Iowa Code subsection
				  4234(1)..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 32 - Receipts Exempt From Use Tax › Rule 701-32.6 - Exemption for Ships, Barges, and Other Waterborne Vessels

Current through Register Vol. 47, No. 3, July 24, 2024
On and after July 1, 1986, tax will not be imposed upon the
				  use, within Iowa, of any ship, barge, or other waterborne vessel if that use is
				  primarily for the transportation of property or cargo for hire on the rivers
				  bordering this state. This exemption is also applicable to tangible personal
				  property used as material in the construction of or as a part for the repair of
				  any such ship, barge, or waterborne vessel. The use must be on a river or
				  rivers bordering Iowa, not on any river or rivers bounded on both banks by Iowa
				  territory. The exemption does not apply for a use for any purpose other than
				  the purpose described in this rule.
This rule is intended to implement Iowa Code subsection
				  4234(10)..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 32 - Receipts Exempt From Use Tax › Rule 701-32.7 - Exemption for Containers

Current through Register Vol. 47, No. 3, July 24, 2024
The use of containers in the collection, recovery, or return
				  of empty beverage containers which are subject to the Iowa deposit law (Iowa
				  Code chapter 455C) is exempt from tax on and after July 1, 1986.
This rule is intended to implement Iowa Code subsection
				  4231(1)..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 32 - Receipts Exempt From Use Tax › Rule 701-32.8 - Exemption for Building Materials Used Outside This State

Current through Register Vol. 47, No. 3, July 24, 2024
The use in Iowa by a contractor-retailer, manufacturer, or
				  manufacturer's subcontractor of building materials, supplies, or equipment in
				  the performance of construction contracts outside this state, the sale or use
				  of which is not treated as a retail sale in this state under rule
				  701-195.
				  (422), is not subject to use tax.
This rule is intended to implement Iowa Code subsection
				  4231(10)..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 32 - Receipts Exempt From Use Tax › Rule 701-32.9 - Exemption for Vehicles Subject to Registration

Current through Register Vol. 47, No. 3, July 24, 2024
The use of vehicles, as defined in Iowa Code section
				  3211.,
				  subsections 4, 6, 8, 9, and 10, except vehicles that are designed primarily for
				  carrying persons, is exempt from tax if the vehicles are purchased for lease
				  and actually leased to a lessee for use outside the state of Iowa and the
				  subsequent sole use in Iowa is in interstate commerce or interstate
				  transportation. Such vehicles are commonly known as motor trucks, truck
				  tractors, road tractors, trailers, or semitrailers. The exemption is
				  retroactive to January 1, 1973.
This rule is intended to implement Iowa Code subsection
				  4234(7)..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 32 - Receipts Exempt From Use Tax › Rule 701-32.10 - Exemption for Vehicles Operated Under Iowa Code Chapter 326

Current through Register Vol. 47, No. 3, July 24, 2024
Vehicles operated under Iowa Code chapter 326 initially in
				  Iowa on and after July I, 1990, are exempt from tax. To claim the exemption to
				  which this rule is applicable, it is not necessary that a vehicle be registered
				  under Iowa Code chapter 326. The vehicle may be registered under some statute
				  other than chapter 326; the exemption still applies. For details regarding
				  vehicles registered under Iowa Code chapter 326 and in interstate commerce, see
				  701-324.
				  (423).
This rule is intended to implement Iowa Code section
				  4234(10)..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 32 - Receipts Exempt From Use Tax › Rule 701-32.11 - Exemption for Vehicles Purchased for Rental or Lease

Current through Register Vol. 47, No. 3, July 24, 2024
(1) On and after July 1, 1992, the use of a
				vehicles subject to registration in any state is exempt from tax if the
				following conditions exist:
a. The vehicle is
				purchased for rental by a person regularly engaged in the business of renting
				vehicles, or is registered and titled for rental use by a motor vehicle dealer
				licensed under Iowa Code chapter 322; and
b. The vehicle is held for rental for a
				period of 120 days or more and actually rented for periods of 60 days or less
				by a person regularly engaged in the business of renting vehicles, including a
				motor vehicle dealer licensed under Iowa Code chapter 322 who rents automobiles
				to users; and
c. All rentals are
				subject to taxation under Iowa Code chapter 422C. See 701-Chapter 27 for
				information concerning rentals.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 32 - Receipts Exempt From Use Tax › Rule 701-32.12 - Exemption for Vehicles Previously Purchased for Rental

Current through Register Vol. 47, No. 3, July 24, 2024
The use of motor vehicles subject to registration and
				  previously purchased for rental is exempt from tax if the following
				  circumstances exist:
1. The motor
				vehicle was registered and titled between July 1, 1982, and July 1, 1992,
				inclusive;
2. The motor vehicle was
				registered and titled to a motor vehicle dealer licensed under Iowa Code
				chapter 322;
3. The motor vehicle
				was rented to a "user" as that term is defined in Iowa Code section 422C.2 and
				701-271.
				(422,422C,423);
4. The dealer kept
				the vehicle on the inventory of vehicles for sale at all times;
5. The vehicle was to be immediately taken
				from the user when a buyer was found; and
6. The user was aware of this fact.
This rule is intended to implement Iowa Code chapter
				  423.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 32 - Receipts Exempt From Use Tax › Rule 701-32.13 - Exempt Use of Aircraft on and After July 1, 1999

Current through Register Vol. 47, No. 3, July 24, 2024
On and after July 1,1999, "aircraft" are subject only to use
				  tax. See rule
				  701-316.
				  (423). As of that same date, the use of the following aircraft is exempt from
				  tax:
(1) Aircraft used in a scheduled
				interstate Federal Aviation Administration certified air carrier
				operation.
(2) The use of an
				aircraft by an aircraft dealer who rents or leases the aircraft to another is
				exempt from tax if all of the following circumstances exist:
a. The aircraft is kept in the inventory of
				the dealer for sale at all times.
b. The dealer reserves the right to
				immediately take the aircraft from the renter or lessee when a buyer is
				found.
c. The renter or lessee is
				aware that the dealer will immediately take the aircraft when a buyer is found.
As soon as an aircraft is used for any purpose other than
				  leasing or renting, or the conditions set out in paragraphs
"a, " "b,
				  "
and
"c "
are not continuously met, the dealer
				  claiming the exemption is liable for the tax which would have been due but for
				  the exemption set out in this subrule. Tax will be computed on the original
				  purchase price paid by the dealer
See rule 701-18.49(422,423) for a description of various
				  aircraft parts and of services performed on aircraft which are exempt from
				  sales and use tax.
This rule is intended to implement Iowa Code section 423.4 as
				  amended by 1999 Iowa Acts, chapter 168.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 32 - Receipts Exempt From Use Tax › Rule 701-32.14 - Exemption for Tangible Personal Property Brought Into Iowa Under Iowa Code Section 29c.24

Current through Register Vol. 47, No. 3, July 24, 2024
On or after January 1, 2016, see 701-Chapter 242 for an
				  exemption from use tax on tangible personal property purchased outside Iowa and
				  brought into Iowa or used in Iowa to aid in the performance of disaster or
				  emergency-related work during a disaster response period as those terms are
				  defined in Iowa Code section
				  29C24..
This rule is intended to implement Iowa Code section
				  423.6(17).
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 33 - Receipts Subject to Use Tax Depending on Method of Transaction › Rule 701-33.2 - Federal Manufacturer's or Retailer's Excise Tax

Current through Register Vol. 47, No. 3, July 24, 2024
See rule
				  701-1512.
				  (422,423) for the principles used to determine when federal excise tax is
				  included in or excluded from the "purchase price" upon which Iowa use tax is
				  based. The rule also contains a list of federal excise taxes which are
				  currently includable in or excludable from the purchase
				  price.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 33 - Receipts Subject to Use Tax Depending on Method of Transaction › Rule 701-33.3 - 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 shall be exempt from 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 shall be 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 use tax for the state, the purchaser shall furnish to
				  such registered seller a written certificate certifying the cost of the
				  property which is to be used for processing and shall, therefore, be exempt.
				  The certificate shall also show the cost of the property which is not to be
				  used in processing and, therefore, taxable in order that the registered seller
				  may properly bill the amount of use tax due. See
				  701-173.
				  (422).
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 33 - Receipts Subject to Use Tax Depending on Method of Transaction › Rule 701-33.4 - Repair of Tangible Personal Property Outside the State of Iowa

Current through Register Vol. 47, No. 3, July 24, 2024
A person who owns tangible personal property in the state of
				  Iowa and sends such property or causes such property to be sent outside the
				  state for the purpose of having it repaired and brings such property back into
				  Iowa, shall be liable for the payment of use tax on the full charge if the
				  service is enumerated.
When the repair is not an enumerated service subject to tax
				  and is invoiced as a separate item from the materials furnished and used in the
				  repair, tax shall be computed only on the charge made for the tangible personal
				  property furnished by the repairer
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 33 - Receipts Subject to Use Tax Depending on Method of Transaction › Rule 701-33.5 - Taxation of American Indians

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Definitions.
"American Indians "
means all persons of
				  Indian descent who are members of any recognized tribe.
"Settlement"
means all lands within the
				  boundaries of the Mesquakie Indian settlement located in Tam a County, Iowa,
				  and any other recognized Indian settlement or reservation within the boundaries
				  of the state of Iowa.
(2)
Use tax.
Out-of-state purchases made by Indians which are
				purchased for use on a recognized settlement or reservation where delivery
				occurs on a recognized settlement or reservation to Indians who are members of
				the tribe located on that settlement or reservation are exempt from tax.
				Out-of-state purchases made by Indians where delivery occurs off a recognized
				settlement or reservation are subject to tax even though purchased for use on a
				recognized settlement or reservation.
(3)
Use tax
-
vehicles subject to registration.
Vehicles subject to
				registration with county treasurers are exempt from use tax if delivery of the
				vehicle is made on a recognized settlement or reservation to Indians who are
				members of the tribe located on that settlement or reservation. Vehicles
				subject to registration with county treasurers are subject to use tax if
				delivery of the vehicle is made off a recognized settlement or reservation.
See rule 701-18.31(422,423) for the taxation of tangible
				  personal property and services where the state sales tax may be
				  applicable.
This rule is intended to implement Iowa Code sections 423.1,
				  423.2, and 423.7.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 33 - Receipts Subject to Use Tax Depending on Method of Transaction › Rule 701-33.6 - Exemption for Property Used in Iowa Only in Interstate Commerce

Current through Register Vol. 47, No. 3, July 24, 2024
In determining whether property used in interstate commerce
				  is exempt from Iowa use tax, the following four circumstances will be
				  considered. Any person claiming that use of property in Iowa is exempt from tax
				  by virtue of its use in interstate commerce must prove that:
1. The use does not have a substantial nexus
				with Iowa; or
2. Iowa use tax is
				not fairly apportioned; or
3.
				Imposition of Iowa use tax results in discrimination against interstate
				commerce; or
4. The use tax imposed
				is not fairly related to services provided by Iowa and which aid the retailer
				or user.
See
complete Auto Transit, Inc. v. Brady,
430
				  U.S. 274, 51 L.Ed.2d 326, 97 S.Ct. 1076 (1977) and
D. H. Holmes company,
				  Ltd. v. McNamara,
100 L.Ed.2d 21,108 S.Ct. 1619 (1988). The second
				  prong, fair apportionment, will be satisfied where the tax credit, authorized
				  by Iowa Code section
				  42325.,
				  is granted.
D. H. Holmes,
100 L.Ed.2d at 28.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 33 - Receipts Subject to Use Tax Depending on Method of Transaction › Rule 701-33.7 - Property Used to Manufacture Certain Vehicles to Be Leased

Current through Register Vol. 47, No. 3, July 24, 2024
Tangible personal property which by means of fabrication,
				  compounding, or manufacturing becomes an integral part of vehicles defined in
				  Iowa Code section
				  3211.,
				  subsections 4, 6, 8, 9, and 10, is exempt from use tax provided the vehicle is
				  manufactured for lease and actually leased to a lessee for use outside the
				  state of Iowa and the subsequent sole use in Iowa is in interstate commerce or
				  interstate transportation. Such vehicles are commonly known as motor trucks,
				  truck tractors, road tractors, trailers, and semitrailers.
The exemption provided in this rule shall not be applicable
				  to any vehicle designed primarily for the purpose of carrying persons.
Should a vehicle, which has been manufactured for lease and
				  actually leased to a lessee for use outside the state of Iowa, have a "taxable
				  moment" (as set forth in rule 33.6(422,423)) subsequent to the lease, tax would
				  be owing and computed at the rate of 3 percent of the cost of the materials
				  used in the manufacture of the vehicle.
The tax shall be paid on or before the last day of the month
				  following the close of the quarter in which a taxable moment took place.
Sales of tangible personal property used as described in this
				  rule and otherwise subject to Iowa retail sales tax imposed pursuant to Iowa
				  Code section 422.43 are not exempt from the sales tax under the provisions of
				  this rule.
The exemption provided in this rule shall be retroactive to
				  January 1, 1973.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 33 - Receipts Subject to Use Tax Depending on Method of Transaction › Rule 701-33.8 - Out-of-state Rental of Vehicles Subject to Registration Subsequently Used in Iowa

Current through Register Vol. 47, No. 3, July 24, 2024
If a vehicle is rented outside this state (such rental occurs
				  when possession of the vehicle is transferred to a customer pursuant to a
				  rental contract) and used within Iowa under the rental contract, rental
				  payments are subject to Iowa use tax if those rental payments are made in Iowa
				  at the termination of the rental agreement. See rule
				  701-307.
				  (423) regarding credit for taxes previously paid to another state.
Example 1. Customer W signs a rental contract and takes
				  possession of a rental car in Los Angeles. W drives the car to Des Moines and
				  then pays a total charge for the rental of $300. This $300 payment is subject
				  to Iowa use tax assuming that no tax was previously paid to another
				  state.
Example 2. Customer X rents and takes possession of a truck
				  in Phoenix, Arizona. There customer X pays a $500 deposit to the rental agency.
				  Rental of the truck is on a mileage and per-day basis. Customer X then drives
				  the truck to Des Moines. The mileage and per-day charges add up to $600.
				  Customer X pays the rental agency an additional $100. This $100 is subject to
				  Iowa use tax.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 33 - Receipts Subject to Use Tax Depending on Method of Transaction › Rule 701-33.10 - 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
As of July 1, 1999, tax is imposed on the use of
				  "manufactured housing" in Iowa. On and after that date the term "manufactured
				  housing" or "manufactured home" is intended, generally, to replace the term
				  "mobile home" when referring to prefabricated housing which is subject only to
				  use tax and not to sales tax even though there are some differences in the
				  law's treatment of mobile homes and manufactured housing.
(1)
Definition.
"Manufactured housing" is basically housing which is factory built to
				specifications required by federal law ( 42 U.S.C. § 5403) and which is
				required by federal law to display a seal from the United States Department of
				Housing and Urban Development. It may be further characterized as (1) a
				structure built on a permanent chassis, (2) transportable in one or more
				sections, and (3) designed to be used as a dwelling with or without a permanent
				foundation. See the definition of "manufactured home" found in 24 Code of
				Federal Regulations § 3280.2 for additional characteristics of what is and
				is not "manufactured housing" for the purposes of Iowa use tax law.
(2)
Tax treatment of manufactured
				housing which is similar to the tax treatment of mobile homes:
a. Manufactured housing is subject only to
				Iowa use tax and not Iowa sales tax. The sale of manufactured housing in Iowa
				is defined by the applicable statute as a use of the housing in this
				state.
b. The use tax on
				manufactured housing is paid by the owner of the housing directly to the
				appropriate county treasurer. The law does not require any dealer or retailer
				in manufactured housing to collect use tax from a purchaser and remit the tax
				to any governmental body, although the law does not prevent a dealer from doing
				this as a courtesy to buyers.
c.
				Prior to July I, 2008, only 60 percent of the purchase price of either a mobile
				home or manufactured housing is subject to use tax. On or after July I, 2008,
				only 20 percent of the purchase price of either a mobile home or manufactured
				housing is subject to use tax. See rule
				701-323.
				(423). The use of manufactured housing previously subject to tax and upon which
				the tax has been paid is exempt from further tax.
d. The taxation of manufactured housing which
				is sold in the form of tangible personal property is similar to the taxation of
				mobile homes which are sold in the form of tangible personal property. See rule
				701-339.
				(423).
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 37 - Underground Storage Tank Rules Incorporated by Reference › Rule 701-37.1 - Rules Incorporated

Current through Register Vol. 47, No. 3, July 24, 2024
Rules in 591-Chapters 5 and 6 of Iowa comprehensive petroleum
				  underground storage tank fund board (UST board) are incorporated with this
				  reference into the rules of the department of revenue.
This rule is intended to implement Iowa Code chapter
				  424.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 38 - Administration › Rule 701-38.1 - Definitions

Current through Register Vol. 47, No. 3, July 24, 2024
(1) When the
				word
"department"
appears herein, the word refers to and is
				synonymous with the "Iowa department of revenue"; the
				word
"director"
is the "director of revenue" or the director's
				authorized assistants and employees.
The administration of the individual income tax is a
				  responsibility of the department. The department is charged with the
				  administration of the individual income tax, fiduciary tax, withholding of tax
				  and individual estimate declarations, subject always to the rules, regulations
				  and direction of the director
(2) The term
"computed tax"
means the amount of tax remaining before deductions of the personal exemption
				credit and other credits in Iowa Code chapter 422, division II, and before the
				computation of the school district surtax and the emergency medical services
				income surtax.
(3) The
				word
"taxpayer"
includes under this division:
a. Every resident of the state of
				Iowa.
b. Every part-year resident
				of the state of Iowa.
c. Every
				estate and trust resident of this state whose income is in whole or in part
				subject to the state income tax.
d.
				Nonresident individuals, estates and trusts (those with a situs outside of
				Iowa) receiving taxable income from property in Iowa or from business, trade,
				or profession or occupation carried on in this state.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 38 - Administration › Rule 701-38.3 - Retention of Records

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Every
				individual subject to the tax imposed by Iowa Code section
				4225.
				(whether or not the individual incurs liability for the tax) and every
				withholding agent subject to the provisions of Iowa Code section
				42216.
				shall retain those books and records as required by Section 6001 of the
				Internal Revenue Code and federal income tax regulation 1.6001-1(e) including
				the federal income tax return and all supporting federal schedules. For
				taxpayers using an electronic data interchange process or technology also see
				701-subrule 11.4(4).
(2) In
				addition, records relating to other deductions or additions to federal adjusted
				income and Iowa tax credits shall be retained so long as the contents may be
				material in the administration of the Iowa Code under the statutes of
				limitations for audit specified in Iowa Code section
				42225..
This rule is intended to implement Iowa Code sections 422.25
				  and 422.70.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 38 - Administration › Rule 701-38.4 - Authority for Deductions

Current through Register Vol. 47, No. 3, July 24, 2024
Whether and to what extent deductions shall be allowed
				  depends upon specific legislative acts, and only where there is a clear
				  provision can any particular deduction be allowed. Therefore, a deduction will
				  be allowed only if the taxpayer can establish the validity and correctness of
				  such deduction.
This rule is intended to implement Iowa Code sections
				  4227.
				  and
				  4229..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 38 - Administration › Rule 701-38.5 - Jeopardy Assessments

Current through Register Vol. 47, No. 3, July 24, 2024
(1) A
				jeopardy assessment may be made in a case where a return has been filed, and
				the director believes for any reason that collection of the tax will be
				jeopardized by delay; or in a case where a taxpayer fails to file a return,
				whether or not formally called upon to do so, in which case the department is
				authorized to estimate the income of the taxpayer upon the basis of available
				information, and to add penalty and interest.
(2) A jeopardy assessment is due and payable
				when the notice of the assessment is served upon the taxpayer. Proceedings to
				enforce the payment of the assessment by seizure or sale of any property of the
				taxpayer may be instituted immediately.
This rule is intended to implement Iowa Code section
				  422.30.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 38 - Administration › Rule 701-38.6 - Information Deemed Confidential

Current through Register Vol. 47, No. 3, July 24, 2024
Iowa Code sections
				  42220.
				  and
				  42272.
				  apply generally to the director, deputies, auditors, agents, present or former
				  officers and employees of the department. Disclosure of information from a
				  taxpayer's filed return or report or other confidential state information by
				  department of revenue personnel to a third person is prohibited under the above
				  sections. Other persons having acquired information disclosed in a taxpayer's
				  filed return or report or other confidential state information will be bound by
				  the same rules of secrecy under these sections as any member of the department
				  and will be subject to the same penalties for violations as provided by law.
				  See rule
				  701-63.
				  (17A).
This rule is intended to implement Iowa Code sections
				  42216.,
				  42220.,
				  and
				  42272..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 38 - Administration › Rule 701-38.8 - Delegations to Audit and Examine

Current through Register Vol. 47, No. 3, July 24, 2024
Pursuant to statutory authority, the director delegates to
				  authorized assistants and employees the power to examine returns and make
				  audits; and to determine the correct amount of tax due, subject to review by or
				  appeal to the director.
This rule is intended to implement Iowa Code section
				  42270..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 38 - Administration › Rule 701-38.9 - Bonding Procedure

Current through Register Vol. 47, No. 3, July 24, 2024
The director may, when necessary and advisable in order to
				  secure the collection of the tax required to be deducted and withheld or the
				  amount actually deducted, whichever is greater, require an employer or
				  withholding agent to file with the director a bond issued by a surety company
				  authorized to conduct business in Iowa and approved by the insurance
				  commissioner as to solvency and responsibility in an amount the director may
				  fix, or in lieu of bond, securities approved by the director in an amount the
				  director may prescribe and keep in the custody of the department. Pursuant to
				  the statutory authorization in Iowa Code section
				  42216.,
				  the director has determined that the following procedures will be instituted
				  with regard to bonds. However, the bonding procedures were applicable only to
				  nonresident employers or withholding agents for withholding taxes due prior to
				  January 1, 1987. The penalty for failure of a withholding agent to file a bond,
				  described in subrule 3 8.9(4) applies to taxes required to be withheld on or
				  after January 1, 1990.
(1)
When required.
a.
New applications by withholding agents.
A new withholding
				agent applicant will be requested to post a bond or security if (1) it is
				determined upon a complete investigation of the applicant's financial status
				that the applicant would be unable to timely remit the tax, or (2) the new
				applicant held a withholding agent's identification number for a prior business
				and the remittance record of the tax under the prior identification number
				falls within one of the conditions in paragraph
"b "
below, or
				(3) the department experienced collection problems while the applicant was
				engaged in business under the prior identification number.
b.
Existing withholding
				agents.
Existing withholding agents shall be requested to post a bond
				or security when they have had two or more delinquencies in remitting the
				withholding tax during the last 24 months if filing returns on a quarterly
				basis or have had four or more delinquencies during the last 24 months if
				filing returns on a monthly basis. The simultaneous late filing of the return
				and the late payment of the tax will count as one delinquency. However, the
				late filing of the return or the late payment of the tax will not count as a
				delinquency if the withholding agent can satisfy one of the conditions set
				forth in Iowa Code section
				42127..
c.
Waiver of bond.
If a
				withholding agent has been requested to post a bond or security or if a
				withholding agent applicant has been requested to post a bond or security, upon
				the filing of the bond or security, if the withholding agent maintains a good
				filing record for a period of two years, the withholding agent may request that
				the department waive the continued bond or security requirement.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 38 - Administration › Rule 701-38.10 - Indexation

Current through Register Vol. 47, No. 3, July 24, 2024
Iowa Code section
				  4225.
				  provides for the adjustment of the tax brackets by a cumulative inflation
				  factor to be determined by the director. The requirement that provided that the
				  state general fund balance on June 30 of the prior calendar year had to be $60
				  million or more before there was indexation of the tax rate brackets for the
				  current year was repealed for tax years beginning on or after January 1,
				  1996.
This rule is intended to implement Iowa Code sections
				  4224.
				  and
				  42221..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 38 - Administration › Rule 701-38.11 - Appeals of Notices of Assessment and Notices of Denial of Taxpayer's Refund Claims

Current through Register Vol. 47, No. 3, July 24, 2024
A taxpayer may appeal to the director at any time within 60
				  days from the date of the notice of assessment of tax, additional tax,
				  interest, or penalties. For assessments issued on or after January 1, 1995, if
				  a taxpayer fails to timely appeal a notice of assessment, the taxpayer may pay
				  the entire assessment and file a refund claim within the period provided by law
				  for filing such claims. In addition, a taxpayer may appeal to the director at
				  any time within 60 days from the date of notice from the department denying
				  changes in filing methods, denying refund claims, or denying portions of refund
				  claims. See rule
				  701-78. (17A) for
				  information on filing appeals or protests.
This rule is intended to implement Iowa Code sections
				  42110.
				  and
				  42228..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 38 - Administration › Rule 701-38.12 - Indexation of the Optional Standard Deduction for Inflation

Current through Register Vol. 47, No. 3, July 24, 2024
Effective for tax years beginning on or after January 1,
				  1990, the optional standard deduction is indexed or increased by the cumulative
				  standard deduction factor computed by the department of revenue. The cumulative
				  standard deduction factor is the product of the annual standard deduction
				  factor for the 1989 calendar year and all standard deduction factors for
				  subsequent annual calendar years. The annual standard deduction factor is an
				  index, to be determined by the department of revenue by October 15 of the
				  calendar year, which reflects the purchasing power of the dollar as a result of
				  inflation during the fiscal year ending in that calendar year preceding the
				  calendar year for which the annual standard deduction factor is to apply. For
				  tax years beginning on or after January 1, 1996, the department shall use the
				  annual percentage change, but not less than 0 percent, in the gross domestic
				  product price deflator computed for the second quarter of the calendar year by
				  the Bureau of Economic Analysis of the United States Department of commerce and
				  shall add all of that percentage change to 100 percent, rounded to the nearest
				  one-tenth of 1 percent. The annual standard deduction factor shall not be less
				  than 100 percent.
This rule is intended to implement Iowa Code section
				  4224..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 38 - Administration › Rule 701-38.14 - Information Returns for Reporting Income Payments to the Department of Revenue

Current through Register Vol. 47, No. 3, July 24, 2024
Effective January 1,1993, every person, every corporation,
				  or agent of a person or corporation, lessees or mortgagors of real or personal
				  property, fiduciaries, employers, and all officers and employees of the state
				  or of any political subdivision of the state, having control, receipt, custody,
				  or disposal of any of the income items described in subrule 38.14(1), shall
				  file information returns with the department of revenue by the last day of
				  February following the end of the year in which the payments were made. For
				  purposes of this rule, "every person" is every individual who is a resident of
				  this state. For purposes of this rule, "every corporation" includes all
				  corporations that have a place of business in this state.
(1)
incomes to he included in
				information returns.
The entities described in rule
				701-3814.
				(422) are required to file information returns to the department of revenue on
				income payments of interest (other than interest coupons payable to the
				bearer), rents, salaries, wages, premiums, annuities, compensation,
				remunerations, emoluments, unemployment compensation, royalties, patronage
				dividends, or other fixed or determinable annual or periodic gains, profits,
				and income to the extent that the amount of income is great enough so that an
				information return on the income is required to be filed with the Internal
				Revenue Service (IRS) under provisions of the Internal Revenue Code. However,
				no reporting is required for payments of deferred compensation, pensions, and
				annuities to nonresidents of Iowa. In addition, no reporting is required for
				any type of income payment where information on the income payment is available
				to the department from the Internal Revenue Service.
(2)
Information on income payments
				available from the Internal Revenue Service.
The department can obtain
				information from the Internal Revenue Service on many income payments made to
				individuals in the tax year. The following is a list of federal reporting forms
				and the types of information available on those forms from the Internal Revenue
				Service for residents of Iowa:
a. 1065 K-1.
1. Dividends.
2. Interest.
3. Tax withheld.
4. Royalties.
5. Ordinary income or (loss).
6. Real estate income or (loss).
7. Other rental income or (loss).
8. Other portfolio income or
				(loss).
9. Guaranteed
				payments.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 38 - Administration › Rule 701-38.16 - Preparation of Taxpayers' Returns by Department Employees

Current through Register Vol. 47, No. 3, July 24, 2024
A department employee can assist a taxpayer in the
				  preparation and completion of the taxpayer's individual income tax returns and
				  other state tax returns during the employee's hours of employment for the
				  department in either of the following situations:
1. At the time the department employee is
				conducting an audit of the taxpayer
2. When the department employee is requested
				to prepare a taxpayer's individual income tax return or other tax returns by
				the taxpayer, the taxpayer's spouse, or the taxpayer's authorized
				representative.
This rule is intended to implement Iowa Code section
				  421.17.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 38 - Administration › Rule 701-38.17 - Resident Determination

Current through Register Vol. 47, No. 3, July 24, 2024
For Iowa individual income tax purposes, an individual is a
				  "resident" if:
(1) the individual
				maintains a permanent place of abode within the state, or
(2) the individual is domiciled in the state.
				An individual who is determined to be a "resident" of Iowa is subject to Iowa
				income tax on all the individual's income for the taxable year, no matter
				whether the income is earned within Iowa or outside of Iowa, except when an
				item of income is specifically exempted from taxation by a provision of federal
				or Iowa law.
(1)
Permanent place of
				abode.
The establishment of a permanent place of abode requires the
				maintenance of a place of abode over a sufficient period of time to create a
				well-settled physical connection with a given locality. Significant factors,
				among others, to be considered in determining whether an individual maintains
				such a permanent place of abode are:
(1) the
				amount of time the individual spends in the locality;
(2) the nature of the individual's place of
				abode;
(3) the individual's
				activities in the locality; and
(4)
				the individual's intentions with regard to the length and nature of the
				individual's stay.
There is a rebuttable presumption that an individual is
				  maintaining a "permanent place of abode" if the individual maintains a place of
				  abode within this state and spends more than 183 days of the tax year within
				  this state. The term "place of abode" includes a house, apartment, condominium,
				  mobile home, or other dwelling place maintained or occupied by the individual
				  whether or not owned or rented by the individual. Situations where presence in
				  the state for 183 days of the tax year may not cause an individual to be
				  considered to be maintaining a "permanent place of abode" would include
				  situations where presence in the state is not voluntary, such as confinement to
				  a correctional facility or an extended hospital stay.