515-223-5119 info@ineda.com

Governor Signs Bill which provides an Exemption from Registration Fees for Certain New, Completed Motor Vehicles Purchased by an Equipment Dealer for Modification and Resale

[2014 | Keywords: Iowa Legislation, Sales Tax, Registration] BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: Section 1. Section 321.48, Code 2014, is amended by adding the following new subsection: NEW SUBSECTION. 3A. A transferee of a new completed motor vehicle shall obtain a certificate of title for the vehicle but… Read More »

Governor Signs Bill to Exempt Fuel and Seed Tenders from Iowa Sales Tax

[2014 | Keywords: Iowa Legislation, Sales Tax, Seed Tenders] Effective July 1, 2014, fuel and seed tenders will be exempt from Iowa sales tax if equipment is used primarily in agricultural production. BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: Section 1. Section 423.3, subsection 8, Code 2014, is amended by… Read More »

Extended or Optional Warranty

[2013 | Keywords: Sales Tax, Warranty] Q: Would an optional warranty be taxed on a tractor that qualifies for the ag exemption? A: Correct. The optional warranty is a separate sale of tangible personal property. So while the tractor (and replacement parts) used in ag production is exempt, that does not exempt the sale of… Read More »

“Good Faith” Acceptance of Exemption Form

[2013 | Keywords: Iowa Legislation, Sales Tax, Good Faith] We receive many phone calls from dealers regarding Iowa sales tax on ag equipment so I thought I would revisit a few areas of the law and/or Iowa Department of Revenue’s interpretation over the next few months. I’ll start with Good Faith (Iowa Code 422.47 (3)… Read More »

Local Sales and Service Tax (Iowa Code 422B.8)

[2013 | Keywords: Sales Tax, Service] A local sales and service tax may be imposed by a jurisdiction on the gross receipts taxed by the state. A local sales and service tax shall be imposed on the same basis as the state sales and service tax and may not be imposed on the sale of… Read More »

Applying Iowa Sales Tax to Discounts, Rebates and Coupons Discounts

[2013 | Keywords: Iowa Legislation, Sales Tax, Discounts, Rebates, Coupons] The word “discount” means “to buy at a reduction.” Iowa sales tax applies to the reduced price paid by the customer. Example: The price of a hammer at George’s Hardware is usually $10. The store reduces the price to $8. Customers who buy the hammer… Read More »