reglab/statecodes huggingface dataset:
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 221 - Miscellaneous Nontaxable Transactions › Rule 701-221.2 - Sales of Prepaid Merchandise Cards

Current through Register Vol. 47, No. 3, July 24, 2024
Sales of prepaid merchandise cards (other than prepaid
				  telephone calling cards (reference 701-subrule 16.51(3)) are not sales of
				  tangible personal property and are not sales the sales price of which is
				  subject to Iowa tax. If a purchaser uses a prepaid merchandise card to purchase
				  taxable tangible personal property or taxable services, sales tax is computed
				  on the sales price at the time of the sale and deducted from the prepaid amount
				  remaining on the merchandise card.
EXAMPLE. Customer A purchases a prepaid merchandise card from
				  ABC Clothing Company in the amount of $200. Customer A purchases a sweater for
				  $50 from ABC Clothing Company. ABC Clothing Company will debit A's card $52.50
				  ($50 × 1.05) for the state tax rate of 5 percent or $53 ($50 ×
				  1.06) if one local option tax rate of 1 percent is applicable.
This rule is intended to implement Iowa Code sections
				  423.1(46)
				   and
				  423.2(1).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 221 - Miscellaneous Nontaxable Transactions › Rule 701-221.2 - Demurrage Charges

Current through Register Vol. 47, No. 3, July 24, 2024
Charges for returning tangible personal property after the
				  agreed-upon date that are true demurrage charges supported by a written
				  agreement do not constitute taxable sales, and the charges are exempt from
				  tax.
This rule is intended to implement Iowa Code sections
				  423.1(51)  and
				  423.2.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 221 - Miscellaneous Nontaxable Transactions › Rule 701-221.3 - Demurrage Charges

Current through Register Vol. 47, No. 3, July 24, 2024
Charges for returning tangible personal property after the
				  agreed-upon date which are true demurrage charges supported by a written
				  agreement do not constitute taxable sales and the charges are exempt from
				  tax.
This rule is intended to implement Iowa Code section
				  423.1(47).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 221 - Miscellaneous Nontaxable Transactions › Rule 701-221.3 - Beverage Container Deposits

Current through Register Vol. 47, No. 3, July 24, 2024
Tax does not apply to beverage container deposits. This rule
				  is also applicable to all mandatory beverage container deposits required under
				  the provisions of Iowa Code chapter 455C, including deposits on items sold
				  through vending machines.
This rule is intended to implement Iowa Code chapter
				  455C.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 221 - Miscellaneous Nontaxable Transactions › Rule 701-221.4 - Beverage Container Deposits

Current through Register Vol. 47, No. 3, July 24, 2024
Tax shall not apply to beverage container deposits. This rule
				  is also applicable to all mandatory beverage container deposits required under
				  the provisions of Iowa Code chapter 455C, including deposits on items sold
				  through vending machines.
This rule is intended to implement Iowa Code chapter
				  455C.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 221 - Miscellaneous Nontaxable Transactions › Rule 701-221.5 - Exempt Sales by Excursion Boat Licensees

Current through Register Vol. 47, No. 3, July 24, 2024
The sales price of the following sales by licensees
				  authorized to operate excursion gambling boats is exempt from Iowa sales and
				  use tax:
(1) charges for admission to
				excursion gambling boats, and
(2)
				the sales price from gambling games authorized by the state racing and gaming
				commission and conducted on excursion gambling boats.
The sales price from charges other than those for admissions
				  or authorized gambling games would ordinarily be taxable. The following is a
				  nonexclusive list of taxable licensee sales: parking fees, sales of souvenirs,
				  vending machine sales, prepared meals, liquor and other beverage sales, and the
				  sales price from nongambling video games and other types of games which do not
				  involve gambling.
This rule is intended to implement Iowa Code section
				  99F.10(6).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 221 - Miscellaneous Nontaxable Transactions › Rule 701-221.5 - Films and Other Media, Exempt Rental and Sale

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Exempt rental.
a. The sales price from the rental of films,
				video and audio tapes or discs, records, photos, copy, scripts, or other media
				used for the purpose of transmitting that which can be seen, heard, or read
				shall not be taxable if the lessee either:
(1)
				Imposes a charge for the viewing or rental of the media and that charge will be
				subject to Iowa sales or use tax, or
(2) Broadcasts the contents of the media for
				public viewing or listening.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 225 - Resale and Processing Exemptions Primarily of Benefit to Retailers › Rule 701-225.1 - Paper or Plastic Plates, Cups, and Dishes, Paper Napkins, Wooden or Plastic Spoons and Forks, and Straws

Current through Register Vol. 47, No. 3, July 24, 2024
When paper or plastic cups, plates, and dishes, paper
				  napkins, and wooden or plastic spoons, forks, and other utensils are sold with
				  food or other items to a buyer, and the buyer uses or consumes the utensils,
				  sales of those utensils to retailers shall be considered sales for resale. The
				  sales price from the sale of such items by retailers to consumers or users
				  shall be subject to tax.
When these articles are transferred in connection with a
				  service or sold for free distribution by retailers apart from a retail sale,
				  the transaction shall be deemed to be a retail sale to the retailer and shall
				  be taxable.
Sales of reusable placemats to retailers that sell meals
				  shall be subject to tax.
EXAMPLE 1. A retailer purchases napkins and disposable forks
				  and knives for the retailer's restaurant. The retailer provides these items
				  free of charge, apart from the retail sale of food at the retailer's
				  restaurant. Sale of these items to the retailer is a retail sale and is subject
				  to tax.
EXAMPLE 2. A retailer purchases napkins and disposable forks
				  and knives for the retailer's restaurant. The retailer sells these items with
				  tangible personal property to the retailer's customers. The sale of these items
				  to the retailer is considered a sale for resale and is not subject to Iowa
				  sales tax at the time of purchase.
This rule is intended to implement Iowa Code section
				  4233(2)..
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 225 - Resale and Processing Exemptions Primarily of Benefit to Retailers › Rule 701-225.1 - Paper or Plastic Plates, Cups, and Dishes; Paper Napkins; Wooden or Plastic Spoons and Forks; and Straws

Current through Register Vol. 47, No. 3, July 24, 2024
When paper or plastic cups, plates, and dishes, paper
				  napkins, and wooden or plastic spoons, forks, and other utensils are sold with
				  food or other items to a buyer, and the buyer uses or consumes the utensils,
				  sales of those utensils to retailers are considered sales for resale. The sales
				  price from the sale of such items by retailers to consumers or users is subject
				  to tax.
When these articles are transferred in connection with a
				  service or sold for free distribution by retailers apart from a retail sale,
				  the transaction is deemed to be a retail sale to the retailer and therefore is
				  taxable.
Sales of reusable placemats to retailers that sell meals are
				  also subject to tax.
EXAMPLE 1: A retailer purchases napkins and disposable forks
				  and knives for the retailer's restaurant. The retailer provides these items
				  free of charge, apart from the retail sale of food at the retailer's
				  restaurant. Sale of these items to the retailer is a retail sale and is subject
				  to tax.
EXAMPLE 2: A retailer purchases napkins and disposable forks
				  and knives for the retailer's restaurant. The retailer sells these items with
				  tangible personal property to the retailer's customers. The sale of these items
				  to the retailer is considered a sale for resale and is not subject to Iowa
				  sales tax at the time of purchase.
This rule is intended to implement Iowa Code section
				  423.3(2).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 225 - Resale and Processing Exemptions Primarily of Benefit to Retailers › Rule 701-225.2 - Services Used in the Repair or Reconditioning of Certain Tangible Personal Property

Current through Register Vol. 47, No. 3, July 24, 2024
Services are exempt from tax when used in the reconditioning
				  or repairing of tangible personal property of the type that is normally sold in
				  the regular course of the retailer's business and that is held for sale by the
				  retailer.
EXAMPLE 1: A owns a retail appliance store and contracts with
				  B to repair a refrigerator that A is going to resell. A can purchase the repair
				  service from B tax-free because A is regularly engaged in selling refrigerators
				  and will offer the refrigerator for sale when it is repaired.
EXAMPLE 2: B, a used car dealer, owns a used car lot and
				  contracts with C to repair a used car that B is going to sell. B can purchase
				  the repair service from C tax-free because B is regularly engaged in selling
				  used cars and will sell the used car after it is repaired.
EXAMPLE 3: C operates a retail farm implement dealership. C
				  accepts a motorboat as part consideration for a piece of farm equipment. C then
				  contracts with D to repair the motor on the boat. C does not normally sell
				  motorboats in the regular course of C's business. Therefore, the service
				  performed by D for C is subject to tax.
EXAMPLE 4: XYZ owns a retail radio and television store in
				  Iowa and contracts with W to repair a television that XYZ is going to sell. XYZ
				  can purchase television repair service tax-free from W because XYZ is regularly
				  engaged in selling televisions subject to sales tax. However, in this instance,
				  XYZ sells the used television and delivers it into interstate commerce with the
				  result that the Iowa sales tax is not collectible. Regardless of this fact, the
				  exemption is applicable, and no Iowa tax is due for the television repair
				  services performed.
This rule is intended to implement Iowa Code sections
				  423.1(55)  and
				  423.3(50).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 225 - Resale and Processing Exemptions Primarily of Benefit to Retailers › Rule 701-225.3 - Services Used in the Repair or Reconditioning of Certain Tangible Personal Property

Current through Register Vol. 47, No. 3, July 24, 2024
Services are exempt from tax when used in the reconditioning
				  or repairing of tangible personal property of the type which is normally sold
				  in the regular course of the retailer's business and which is held for sale by
				  the retailer
EXAMPLE 1. A owns a retail appliance store and contracts with
				  B to repair a refrigerator that A is going to resell. A can purchase the repair
				  service from B tax-free because A is regularly engaged in selling refrigerators
				  and will offer the refrigerator for sale when it is repaired.
EXAMPLE 2. B, a used car dealer, owns a used car lot and
				  contracts with C to repair a used car that B is going to sell. B can purchase
				  the repair service from C tax-free because B is regularly engaged in selling
				  used cars and will sell the used car after it is repaired.
EXAMPLE 3. C operates a retail farm implement dealership. C
				  accepts a motorboat as part consideration for a piece of farm equipment. C then
				  contracts with D to repair the motor on the boat. C does not normally sell
				  motorboats in the regular course of C's business. Therefore, the service
				  performed by D for C is subject to tax.
EXAMPLE 4. XYZ owns a retail radio and television store in
				  Iowa and contracts with W to repair a television that XYZ is going to sell. XYZ
				  can purchase television repair service tax-free from W because XYZ is regularly
				  engaged in selling televisions subject to sales tax. However, in this instance
				  XYZ sells the used television and delivers it into interstate commerce with the
				  result that the Iowa sales tax is not collectible. Regardless of this fact, the
				  exemption is applicable, and no Iowa tax is due for the television repair
				  services performed.
This rule is intended to implement Iowa Code sections
				  4231(50). and
				  4231(51)..
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 225 - Resale and Processing Exemptions Primarily of Benefit to Retailers › Rule 701-225.4 - Maintenance or Repair of Fabric or Clothing

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Chemicals, solvents, sorbents,
				and reagents.
Sales of chemicals, solvents, sorbents, or reagents
				directly used and consumed in the maintenance or repair of fabric or clothing
				are exempt from tax. This rule's exemption is mainly applicable to dry-cleaning
				and laundry establishments; however, it is also applicable to soap or any
				chemical or solvent used to clean carpeting. The department presumes that a
				substance is "directly used" in the maintenance or repair of fabric or clothing
				if the substance comes in contact with the fabric or clothing during the
				maintenance or repair process. Substances that do not come into direct contact
				with fabric or clothing may, under appropriate circumstances, be directly used
				in the maintenance or repair of the fabric or clothing, but direct use will not
				be presumed.
(2)
Examples.
a.
				Perchloroethylene (also known as "perch") or petroleum solvents used in
				dry-cleaning machines and coming in direct contact with the clothing being
				dry-cleaned are typically exempt as being directly used and consumed in the
				maintenance or repair of fabric or clothing.
b. Substances used to clean or filter the
				"perch" or petroleum solvents would also be exempt from tax, even though these
				substances do not come in direct contact with the clothing being
				cleaned.
c. The sale of soap or
				detergents especially made for mixing with "perch" or petroleum solvents is
				exempt from tax.
d. The sale of
				stain removers to dry cleaners is exempt from tax.
e. A commercial laundry's purchase of
				detergents, bleaches, and fabric softeners is exempt from tax.
f. A commercial laundry's purchase of water,
				which is a solvent, is also exempt from tax if purchased for use in the
				cleaning of clothing.
g. The
				purchase of starch by laundries and "sizing" by dry cleaners is not exempt from
				tax.
This rule is intended to implement Iowa Code section
				  423.3(51).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 225 - Resale and Processing Exemptions Primarily of Benefit to Retailers › Rule 701-225.5 - Maintenance or Repair of Fabric or Clothing

Current through Register Vol. 47, No. 3, July 24, 2024
Sales of chemicals, solvents, sorbents, or reagents directly
				  used and consumed in the maintenance or repair of fabric or clothing are exempt
				  from tax. See 701-Chapter 211 for definitions of the terms "chemical,"
				  "solvent," "sorbent," and "reagent." This rule's exemption is mainly applicable
				  to dry-cleaning and laundry establishments; however, it is also applicable to
				  soap or any chemical or solvent used to clean carpeting. The department
				  presumes that a substance is "directly used" in the maintenance or repair of
				  fabric or clothing if the substance comes in contact with the fabric or
				  clothing during the maintenance or repair process. Substances which do not come
				  into direct contact with fabric or clothing may, under appropriate
				  circumstances, be directly used in the maintenance or repair of the fabric or
				  clothing, but direct use will not be presumed.
The following are examples of substances directly used and
				  consumed in the maintenance or repair of fabric or clothing: perchloroethlyene
				  (also known as "perch") or petroleum solvents used in dry-cleaning machines and
				  corning in direct contact with the clothing being dry-cleaned. Substances used
				  to clean or filter the "perch" or petroleum solvents would also be exempt from
				  tax, even though these substances do not come in direct contact with the
				  clothing being cleaned. The sale of soap or detergents especially made for
				  mixing with "perch" or petroleum solvents is exempt from tax. The sale of stain
				  removers to dry cleaners is exempt from tax.
A commercial laundry's purchase of detergents, bleaches, and
				  fabric softeners is exempt from tax. A commercial laundry's purchase of water,
				  which is a solvent, is also exempt from tax if purchased for use in the
				  cleaning of clothing.
The purchase of starch by laundries and "sizing" by dry
				  cleaners is not exempt from tax.
This rule is intended to implement Iowa Code section
				  4233(50)..
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 225 - Resale and Processing Exemptions Primarily of Benefit to Retailers › Rule 701-225.7 - Exemption for Certain Purchases by Commercial Enterprises

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Exemption.
The sales price from the sale of specified digital
				products and of prewritten computer software sold, and of enumerated services
				described in Iowa Code section
				423.2(1)
"a"
(5) or 423.2(6)
"bq,""br,""bs,"
and
"bu"
furnished to a commercial enterprise for use exclusively
				by a commercial enterprise is exempt from tax.
(2)
Commercial enterprise as
				purchaser.
A purchaser seeking this exemption must be a commercial
				enterprise as defined in Iowa Code section 423.3(104)
"b"
(1).
				For purposes of Iowa Code section 423.3(104)
"b"
(1). For
				purposes of Iowa Code section 423.3(104)
"b"
(1), the following
				definitions apply:
a.
Insurance
				company.
"Insurance company" means the same as defined in Iowa Code
				section 423.3(47)
"d."
Excluded from the definition of
				"insurance company" is the following nonexhaustive list of entities: benevolent
				associations governed by Iowa Code chapter 512A, fraternal benefit societies
				governed by Iowa Code chapter 512B, and health maintenance organizations
				governed by Iowa Code chapter 514B.
b.
Occupation.
"Occupation"
				means the principal business of an individual, such as the business of
				farming.
c.
Profession.
"Profession" means a vocation or employment
				requiring specialized knowledge and often long and intensive academic
				preparation.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 225 - Resale and Processing Exemptions Primarily of Benefit to Retailers › Rule 701-225.8 - Exemption for Commercial Enterprises

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Commercial enterprise as
				purchaser.
A purchaser seeking this exemption must be a commercial
				enterprise as defined in Iowa Code section
				423.3(104)
"b"(1).
For purposes of Iowa Code section
				423.3(104)
"b
"(1), the terms "profession" and "occupation" mean the same
				as defined in 701-paragraph 230.18(3)
"c"
(2)
Exclusive use by a commercial
				enterprise.
A commercial enterprise must be the exclusive user of the
				product. Use in the ordinary course of a commercial enterprise's business
				constitutes exclusive use by a commercial enterprise. Uses by all other users,
				including entities other than commercial enterprises, do not constitute uses by
				a commercial enterprise.
a.
Examples
				of exclusive uses.
The following are examples of exclusive uses by a
				commercial enterprise in the normal course of business:
(1) Word processing software loaded onto
				employees' work computers.
(2)
				Software that displays a menu on a tablet used by customers at a
				restaurant.
(3) Information
				services used by temporary employees of a commercial enterprise in the ordinary
				course of business.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 250 - Vehicles Subject to Registration › Rule 701-250.1 - Definitions

Current through Register Vol. 47, No. 3, July 24, 2024
"Dealer"
means the same as defined in Iowa
				  Code section
				  321.1(17).
"Directly and primarily used in recycling"
means the same as defined in rule
				  701-230.19 (423).
"Optional service agreement"
means an
				  arrangement to prepay or pay for a predetermined price for future vehicle
				  services, including but not limited to oil changes and tire rotation.
"Regular course of business"
means the
				  activities that a person normally engages in as part of managing the person's
				  trade or business. If referring to a dealer licensed under Iowa Code section
				  322.7,
				  "regular course of business" further includes only the make or makes of new
				  vehicles listed on the dealer's license.
"Single-member LLC"
means a limited
				  liability company (LLC) of which income is reported on Schedule C of the
				  owner's personal income tax return. A single-member LLC shall be treated as a
				  sole proprietorship.
"Vehicle protection package"
means services
				  including but not limited to exterior paint protection; interior fabric,
				  leather, and vinyl protection; rust proofing; and undercoating that are
				  purchased at the time the vehicle is purchased.
"Vehicle subject to registration"
means any
				  vehicle subject to registration pursuant to Iowa Code section
				  321.18.
This rule is intended to implement Iowa Code section
				  321.105A
				  as amended by 2021 Iowa Acts, Senate File 366.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 250 - Vehicles Subject to Registration › Rule 701-250.2 - Purchase Price

Current through Register Vol. 47, No. 3, July 24, 2024
(1) "Purchase
				price" means the same as defined in Iowa Code section
				321.105A(2)
"a"
and does not include:
a.
				Cash discounts.
b. Allowances for
				the trade-in of a vehicle subject to registration, as further outlined in rule
				701-34.3(321).
c. Gasoline, if
				separately itemized.
d. Fees
				imposed by the dealer for document processing, including but not limited to
				those commonly known as "doc fees."
e. Any manufacturer's cash rebate to a
				purchaser which is applied to the purchase price of a vehicle.
f. Optional service agreements, if separately
				itemized.
g. Vehicle protection
				plans, if separately itemized.
h.
				Costs listed under Iowa Code section
				423.1(51)
"a."
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 250 - Vehicles Subject to Registration › Rule 701-250.3 - Trades

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Trades,
				generally.
a. A trade-in allowance
				is excluded from the purchase price only if the requirements of Iowa Code
				section 321.105A(2)
"a"
(2)(c) are met.
EXAMPLE A: Person D has an automobile with a value of $5,000.
				  Person E also has an automobile valued at $5,000. They decide to trade
				  automobiles. Person D and Person E make an even trade, automobile for
				  automobile, with no money changing hands. The fee for new registration is not
				  due on either automobile because the exchange is even in value.
EXAMPLE B: Person B has an automobile with a value of $2,000.
				  Person C has an automobile valued at $3,500. Person B and Person C decide to
				  trade automobiles. Person B pays Person C $1,500 in cash for the difference in
				  value. Person B will pay the fee for new registration on $1,500. Person C will
				  not pay the fee for new registration because the trade-in allowance reduces the
				  purchase price to $0.
EXAMPLE C: Person F has an automobile with a value of $5,000.
				  Person G has an automobile valued at $3,000 and a forklift valued at $2,000.
				  The forklift is not a vehicle subject to registration. They decide to trade
				  these three items. An even trade is made, Person F's automobile in exchange for
				  Person G's automobile and forklift, with no money changing hands. Thus, Person
				  G cannot receive a trade-in allowance for the forklift against the $5,000
				  purchase price of Person F's automobile. Person G will, however, receive a
				  trade-in allowance on the value of the automobile, a vehicle subject to
				  registration. Therefore, Person G will pay a fee for new registration on
				  $2,000. Person F will not pay the fee for new registration because the trade-in
				  allowance reduces the purchase price to $0.
b. Unless otherwise excluded, a trade-in
				allowance is excluded from the purchase price only if the person(s) listed on
				the title of the traded vehicle are the same as the person(s) listed on the
				newly acquired vehicle. See Iowa Code section
				321.105A(2).
EXAMPLE: Person H and Person I are unrelated and, together,
				  own a vehicle subject to registration. The owner on the title of the vehicle is
				  listed as "Person H or Person I." Person I trades in the vehicle toward the
				  purchase of a new vehicle to be owned together by Person I and Person J, also
				  unrelated. The owner on the title of the new vehicle is listed as "Person I or
				  Person J." The trade-in allowance is not allowed against the purchase price
				  because Person J is not one of the persons on the original vehicle
				  title.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 250 - Vehicles Subject to Registration › Rule 701-250.4 - Manufacturer's Rebate

Current through Register Vol. 47, No. 3, July 24, 2024
(1) A
				manufacturer's rebate can be used to reduce the purchase price of a vehicle
				subject to the fee for new registration. To qualify, all of the following must
				be present:
a. A rebate must be a return of
				an amount that the purchaser would otherwise have paid;
b. The rebate must be in the form of
				money;
c. The rebate must be
				offered by a manufacturer licensed under Iowa Code section
				322.27;
d. The rebate must be applied to the purchase
				price of the vehicle;
e. The rebate
				is strictly a transaction between a manufacturer and a purchaser.
(1) The rebate must be from an entity acting
				as a manufacturer of such vehicle being purchased when offering the rebate. The
				rebate cannot be from a vehicle manufacturer engaging in other activities, such
				as a manufacturer acting in the capacity of a credit card issuer or a financing
				program; and
(2) The purchaser must
				be in the process of purchasing the vehicle when the rebate is given. The
				rebate cannot be given to a customer in a situation similar to the credit card
				rebate program, in which the customer earns the right to the rebate over a
				period of time. Purchase of the vehicle must occur simultaneously with the
				receipt of the rebate, and the rebate cannot be allowed unless the customer
				purchases the vehicle.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 250 - Vehicles Subject to Registration › Rule 701-250.5 - Selling and Purchasing the Same Vehicle

Current through Register Vol. 47, No. 3, July 24, 2024
If a person sells a vehicle subject to registration and then
				  buys the same vehicle back, the transaction is not exempt from the fee for new
				  registration. These are two separate transactions, and both are subject to the
				  fee for new registration.
This rule is intended to implement Iowa Code section
				  321.105A
				  as amended by 2021 Iowa Acts, Senate File 366.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 250 - Vehicles Subject to Registration › Rule 701-250.6 - Federal Excise Tax

Current through Register Vol. 47, No. 3, July 24, 2024
Tobe excluded from the fee for new registration, the federal
				  excise tax must meet both of the following requirements:
(1) It must be imposed upon the purchaser and
				be due at the time of the retail sale.
(2) It must be billed or charged as a
				separate item.
This rule is intended to implement Iowa Code section
				  321.105A
				  as amended by 2021 Iowa Acts, Senate File 366.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 250 - Vehicles Subject to Registration › Rule 701-250.7 - Sales to a Native American

Current through Register Vol. 47, No. 3, July 24, 2024
If a dealer delivers a vehicle to a resident Native American
				  on a reservation and, at a later time, the resident Native American registers
				  the vehicle at the county treasurer's office, the fee for new registration is
				  not due since the delivery took place on a reservation.
(1) If the vehicle is delivered off a
				reservation, the fee for new registration is due even if the sole use of the
				vehicle is on a reservation.
(2) If
				delivery takes place on a reservation, but the owner is not a member of any
				federally recognized tribe, the fee for new registration is due.
This rule is intended to implement Iowa Code section
				  321.105A
				  as amended by 2021 Iowa Acts, Senate File 366.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 250 - Vehicles Subject to Registration › Rule 701-250.8 - Sale of Chassis With Added Equipment or Accessories

Current through Register Vol. 47, No. 3, July 24, 2024
(1) If a dealer sells a chassis and the
				purchaser has the dealer install any equipment, the fee for new registration is
				due on the full purchase price, including the chassis and the equipment. This
				is a completed vehicle when driven off the dealer's lot.
(2) If the chassis is purchased from a dealer
				and the equipment is installed by the purchaser from a third party, the fee for
				new registration is due on the chassis and sales tax is due on the equipment.
EXAMPLE A: Business S purchases a chassis from an auto dealer
				  for $20,000. Business S wants a lift added to the chassis. The auto dealer
				  agrees to sell and install the lift for $15,000. The auto dealer takes the
				  chassis to a lift dealer for purchase and installation of the lift. After the
				  installation, Business S returns to the auto dealer to take delivery of the
				  completed vehicle. Business S requests the auto dealer itemize the chassis
				  price of $20,000 and the lift price of $15,000. Business S pays the auto dealer
				  $35,000 for the complete vehicle. The chassis and lift together are a vehicle
				  subject to registration, because both constitute the completed vehicle, and the
				  fee for new registration is due on $35,000.
EXAMPLE B: Business T purchases a chassis from an auto dealer
				  for $20,000. Business T wants a lift added to the chassis. However, Business T
				  will purchase the lift from a third party and not from the auto dealer.
				  Business T pays the dealer $20,000 for the chassis. Business T drives the
				  chassis to a lift dealer to purchase and install a lift for $12,000. The
				  purchase of the chassis from the auto dealer is subject to the fee for new
				  registration because it alone constitutes the completed vehicle purchased. The
				  purchase and installation of the lift from the lift dealer are subject to Iowa
				  sales tax and any applicable local option tax, rather than the vehicle fee for
				  new registration.
This rule is intended to implement Iowa Code section
				  321.105A
				  as amended by 2021 Iowa Acts, Senate File 366.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 250 - Vehicles Subject to Registration › Rule 701-250.9 - Sale of a Boat or Atv With a Trailer

Current through Register Vol. 47, No. 3, July 24, 2024
(1) If a boat or ATV dealer sells a boat or
				ATV with a trailer as a packaged deal, the dealer must itemize the boat or ATV,
				boat or ATV accessories, and trailer. The fee for new registration is due on
				the purchase price of the trailer.
(2) If the boat or ATV dealer does not
				itemize, it is assumed the full price of the packaged deal is for the purchase
				of a trailer and not for the boat or ATV and accessories. The fee for new
				registration will be calculated based on the full price of the packaged deal.
This rule is intended to implement Iowa Code section
				  321.105A
				  as amended by 2021 Iowa Acts, Senate File 366.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 250 - Vehicles Subject to Registration › Rule 701-250.10 - Administration

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Vehicle
				registrants may utilize either a paper or electronic affidavit as a method of
				submission. The title and registration application created under Iowa Code
				section
				321.20
				is an affidavit for purposes of this rule.
(2) Exemptions shall be divided into eight
				categories as follows:
a. UT01 - Iowa Code
				section 321.105A(2)
"c"
(19) and
				321.105A(2)
"c"
(20).
b. UT02 - Iowa Code section
				321.105A(2)
"c"
(1).
c. UT03 - Iowa Code section
				321.105A(2)
"c"
(3) and
				321.105A(2)
"c"
(12).
d. UT04 - Iowa Code section
				321.105A(2)
"c"
(14).
e. UT05 - Iowa Code section
				321.105A(2)
"c"
(6).
f. UT06 - Iowa Code section
				321.105A(2)
"c"
(2).
g. UT07 - Iowa Code section
				321.105A(2)
"c"
(5).
h. UT08:
(1)
				UT08b - Iowa Code section
				321.105A(2)
"c"
(10).
(2) UT08c - Iowa Code section
				321.105A(2)
"c"
(8).
(3) UT08d - Iowa Code section
				321.105A(2)
"c"
(16).
(4) UT08e - Iowa Code section
				321.105A(2)
"c"
(7).
(5) UT08i - Iowa Code section
				321.105A(2)
"c"
(18).
(6) UT08j - Iowa Code section
				321.105A(2)
"c"
(13).
(7) UT08k - Iowa Code section
				321.105A(2)
"c"
(11).
(8) UT08s - Iowa Code section
				321.105A(2)
"c"
(17).
(9) UT08 - Other - Iowa Code section
				321.105A(2)
"c"
(4),
				321.105A(2)
"c"
(9), 321.105A(2)
"c"
(15), and
				321.105A(2)
"c"
(21) to
				321.105A(2)
"c"
(31).
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 250 - Vehicles Subject to Registration › Rule 701-250.11 - Shell Businesses

Current through Register Vol. 47, No. 3, July 24, 2024
(1) The
				90-day temporary period of operation under Iowa Code section
				321.55(2)
				 does not apply to a vehicle owned by a shell
				business.
(2) Factors that indicate
				a business is a shell business include, but are not limited to, a lack of
				specific business activity or purpose and failure to maintain a physical
				location in the state in which the business is registered.
(3) If the department determines that the
				nonresident owner of the vehicle is a shell business, it is presumed that:
a. The Iowa resident in control of the
				vehicle is the actual owner of the vehicle;
b. The vehicle is subject to Iowa
				registration; and
c. The payment of
				the fee for new registration is owed by the Iowa resident.
This rule is intended to implement Iowa Code section
				  321.105A
				  as amended by 2021 Iowa Acts, Senate File 366.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 250 - Vehicles Subject to Registration › Rule 701-250.12 - Purchased for Resale

Current through Register Vol. 47, No. 3, July 24, 2024
(1) A motor
				vehicle dealer licensed under Iowa Code chapter 322 may title or title and
				register a vehicle using an exemption under either Iowa Code section
				321.105A(2)
"c"
(14) or
				321.105A(2)
"c"
(15) if the vehicle is operated in a manner consistent with
				the lawful use of dealer plates under Iowa Code section
				321.57
				and any associated rules.
(2) In
				order for a vehicle to be considered to be "held for resale," all of the
				following criteria must be met during all times that the vehicle is registered
				to the dealer:
a. The dealer must be licensed
				in Iowa pursuant to Iowa Code chapter 322;
b. Any use of the vehicle by the dealer must
				not constitute a taxable sale;
c.
				The dealer must keep the vehicle in its inventory for sale at all
				times;
d. The person using the
				vehicle must be aware of and accept that the vehicle may be sold at any time,
				resulting in the removal of the vehicle from that person's
				possession;
e. The dealer must
				permit the vehicle to be used without charge;
f. The dealer must not title the vehicle in
				its name and must operate the vehicle with dealer plates as provided in Iowa
				Code section
				321.57.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 250 - Vehicles Subject to Registration › Rule 701-250.13 - Loans

Current through Register Vol. 47, No. 3, July 24, 2024
Relief from a loan balance constitutes consideration for the
				  purposes of the fee for new registration.
EXAMPLE A: A vehicle is titled in Person V's name with a loan
				  also in Person V's name. Person V transfers the title to Person W, who assumes
				  the unpaid balance of the loan. A new lien is filed. The fee for new
				  registration is due on Person V's outstanding loan balance.
EXAMPLE B: A vehicle is titled in Person X's name with an
				  outstanding loan balance of $10,000. Person X transfers the title to Person Y.
				  Person Y takes out a $15,000 loan to pay off Person X's outstanding loan of
				  $10,000 and also to have $5,000 for repairs to Person Y's house. The fee for
				  new registration is due only on Person X's outstanding loan balance of
				  $10,000.
This rule is intended to implement Iowa Code section
				  321.105A
				  as amended by 2021 Iowa Acts, Senate File 366.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 250 - Vehicles Subject to Registration › Rule 701-250.14 - Leased Vehicles

Current through Register Vol. 47, No. 3, July 24, 2024
(1) The fee for
				new registration on leased vehicles is a liability of the owner (lessor) of the
				vehicle and not the lessee.
(2)
				Owners/lessors may require the lessee to reimburse the owner/lessor, by adding
				the fee for new registration to the monthly lease payment or by requiring the
				lessee to pay the fee for new registration up front.
(3) When a lessee chooses to terminate a
				lease and purchase the vehicle being leased, the purchase is subject to a fee
				for new registration on the purchase price. There is no refund of the fee for
				new registration paid on the lease price.
(4) If an existing lease is transferred to
				another lessee, no additional fee for new registration is due so long as the
				title to the vehicle is maintained by the same lessor and the terms of the
				lease are not changed.
(5) When a
				vehicle with an existing lease established in another state is registered in
				Iowa, the lease price is calculated as established in Iowa Code section
				321.105A(3)
"b"
and then shall be prorated for the number of
				months remaining on the lease. No credit is allowed for any fee or tax paid to
				another state.
This rule is intended to implement Iowa Code section
				  321.105A
				  as amended by 2021 Iowa Acts, Senate File 366.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 250 - Vehicles Subject to Registration › Rule 701-250.15 - Vehicles Purchased for the Purpose of Being Leased and Used Exclusively for Interstate Commerce

Current through Register Vol. 47, No. 3, July 24, 2024
(1) The
				department makes a distinction between a true lease and a contract to haul.
				While an agreement may be a lease for purposes of the Interstate Commerce
				Commission, this does not mean it is a lease for purposes of the fee for new
				registration. A true lease exists when the owner (lessor) gives the lessee
				exclusive possession of the lessor's property for a specified period. A
				contract to haul exists when an owner contracts to do a piece of work while
				retaining control of the vehicle and methods of operation. A contract to haul
				is not a lease; therefore, the vehicle is not exempt.
(2) An intrastate delivery occurs when
				property is picked up at one location in Iowa and delivered to another location
				in Iowa, regardless of whether the vehicle travels in another state in between
				pick-up and delivery. For example, picking up property in Des Moines and
				delivering it to Cedar Rapids is an intrastate delivery. Conversely, in an
				interstate delivery, either the pick-up or delivery site will be located
				outside of Iowa.
EXAMPLE A: Leasing Company A purchased a cargo van for the
				  purpose of leasing it to XYZ Trucking. The lease agreement is for 36 months.
				  XYZ Trucking will pick up property from Iowa businesses to be delivered out of
				  state. XYZ Trucking never uses the van for intrastate deliveries within Iowa.
				  XYZ Trucking uses this van exclusively in interstate commerce. All of the trips
				  are either totally outside the state of Iowa, or, if a product is loaded in
				  Iowa, the product is delivered outside of Iowa. As long as pick-up and delivery
				  points are in different states, then the trip is considered interstate
				  commerce. As such, the van in this example may be purchased by Leasing Company
				  A exempt from the fee for new registration.
EXAMPLE B: Leasing Company A purchases a flatbed truck for
				  the purpose of leasing it to XYZ Trucking, located within Iowa. The lease is
				  for five months. XYZ Trucking will use the truck for deliveries out of state
				  and in Iowa. Since some deliveries occur in Iowa, the subsequent use in Iowa is
				  not solely for interstate commerce. The purchase by Leasing Company A (lessor)
				  of the flatbed is subject to the fee for new registration.
This rule is intended to implement Iowa Code section
				  321.105A
				  as amended by 2021 Iowa Acts, Senate File 366.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 250 - Vehicles Subject to Registration › Rule 701-250.17 - Vehicles Purchased Outside of Iowa

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Vehicles purchased with no intent
				for use in Iowa.
a. Vehicles that
				are purchased by a nonresident for use in a location other than Iowa are not
				subject to the fee for new registration upon move-in to Iowa. The determination
				of intention of use in Iowa is a factual determination. The county treasurer
				should consider any appropriate factors including, but not limited to, the
				following:
(1) Whether the vehicle was owned
				by the owner for a significant time prior to relocation to Iowa. A longer
				period of ownership while in another location may be indicative of intent of
				use in the other location. Conversely, if the vehicle was purchased near the
				time of relocation to Iowa, this might suggest intent of use in Iowa.
(2) Whether the vehicle was registered in
				another location.
(3) Whether a
				substantial number of miles were driven in the vehicle in another location
				since the owner purchased the vehicle.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 250 - Vehicles Subject to Registration › Rule 701-250.18 - Business Entity to Business Entity Transfers With the Same Ownership and Purpose

Current through Register Vol. 47, No. 3, July 24, 2024
Transactions between two business entities may be exempted
				  from the fee for new registration if certain criteria are met, as described in
				  Iowa Code section
				  321.105A(2)
"c"
(3).
EXAMPLE A: Person F owns and operates a family farm with
				  Person F's spouse as a sole proprietorship and wants to transfer assets
				  (including a vehicle subject to registration) from Person F's personal name
				  into a corporation (of which Person F and Person F's spouse are the sole
				  shareholders). Person F filed articles of incorporation earlier this year with
				  the secretary of state and intends to use the corporation to continue to
				  operate Person F's family farm, the same purpose as the sole proprietorship.
				  This transaction is eligible for the exemption described in Iowa Code section
				  321.105A(2)
"c"
(3)
				  because the vehicle is being transferred from an eligible business type (sole
				  proprietorship) to a corporation, with the ownership of the businesses being
				  the same and the transaction occurring within two years of the corporation
				  being formed, and the newly formed corporation was formed for the purpose of
				  continuing the family farm business.
EXAMPLE B: Person G wants to start a construction business.
				  Person G currently does not operate any business. Person G files articles of
				  incorporation and wants to transfer a truck from Person G's personal name into
				  the corporation. This transaction is not eligible for the exemption described
				  in Iowa Code section
				  321.105A(2)
"c"
(3)
				  because the purpose of the corporation is not to continue an existing eligible
				  business.
EXAMPLE C: Person H operates a delivery business as a sole
				  proprietorship and wants to expand. Person H gets together with two investors
				  and files articles of incorporation with all three partners as shareholders and
				  wants to transfer a van into the corporation. This transaction is not eligible
				  for the exemption described in Iowa Code section
				  321.105A(2)
"c"
(3)
				  because the ownership of the corporation is not the same as the sole
				  proprietorship, since all of the stock of the corporation is not owned by
				  Person H.
This rule is intended to implement Iowa Code section
				  321.105A
				  as amended by 2021 Iowa Acts, Senate File 366.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 250 - Vehicles Subject to Registration › Rule 701-250.19 - Homemade Vehicles

Current through Register Vol. 47, No. 3, July 24, 2024
(1) For the
				purposes of the vehicle fee for new registration, a homemade vehicle is one
				that has been constructed from any combination of new, used, or homemade parts
				that does not resemble a vehicle that was manufactured under a specific year,
				make, and model by a manufacturer and is not intended for resale.
(2) Homemade vehicles include:
a. A vehicle that has been structurally
				modified so that it does not have the same appearance as a similar vehicle from
				the same manufacturer.
EXAMPLE: A vehicle with modified fenders, engine compartment
				  lid, and front end, but still recognizable as the make/model of the vehicle, is
				  not considered homemade;
b.
				A vehicle that has been constructed entirely from homemade parts and materials
				not obtained from other vehicles; or
c. A vehicle that has been constructed by
				using major component parts from one or more manufactured vehicles and cannot
				be identified as a specific make and model.
This rule is intended to implement Iowa Code section
				  321.105A
				  as amended by 2021 Iowa Acts, Senate File 366.