[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...…
[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...…
[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)...…
[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 $8. Customers who buy the hammer...…
[2013 | Keywords: Iowa Legislation, Local Option Sales Tax, Sales Tax] Q: What does delivery have to do with the taxability of a sale? Where tangible personal property is delivered determines whether or not a sale is taxable. If delivery occurs within a local option jurisdiction, the local option sales tax may be due. If...…
[Author: Tom Junge, Iowa Field Director, 2013 | Keywords: Sales Tax, Subscriptions, ATV] Several changes have been made to Iowa Sales Tax Laws over the years that directly affect Iowa-Nebraska Equipment Dealer Association members. Following is a brief review of some of these changes. GPS/RTK Subscriptions In May 2012, The Iowa Department of Revenue issued...…
[2013 | Keywords: Iowa Legislation, Sales Tax, Service] Service Call Fees Service call fees: Flat fee is taxable (due to being based on labor charge), whereas a mileage charge ($.00/mile) or trip fee is not taxable. Trip fee must be based on distance. Handling Charge Now Exempt In Iowa, delivery charges are exempt from sales...…
[2011; R-2013 | Keywords: Iowa Legislation, Sales Tax, Itemized Bill] Auto shops may itemize bills, showing which items are services, which are parts, and which are consumed materials (materials used in repair that do not become a part of the vehicle). When itemizing occurs, shops should collect sales tax on the services and parts, but...…
[2012; R-2013 | Keywords: Iowa Legislation, Sales Tax, Transportation] ICA Ch 15, p.1 701—15.13(422,423) Freight, other transportation charges, and exclusions from the exemption applicable to these services. The determination of whether freight and other transportation charges shall be subject to sales or use tax is dependent upon the terms of the sale agreement. When tangible...…
[ 2008; R-2013 | Keywords: Sales Tax, CRP Land which is placed in the CRP program cannot be used for agricultural production. Because CRP land cannot be used for agricultural production, equipment used primarily on CRP ground are not directly and primarily used in the production of agricultural products. Here is a portion of a January...…
[ 2008; R-2013 | Keywords: Iowa Legislation, Sales Tax, Service] A question came up after the sales tax breakout session at the annual meeting regarding interstate commerce and sales tax on equipment serviced at an Iowa dealership. The particular question was, do we charge Iowa sales tax if an Iowa dealer picks up equipment from...…
[Author: Will Rogers, Director of Governmental Affairs, 2012; R-2013 | Keywords: Legislation, Trailers] If you are a retailer of Diesel Fuel Trailers in Iowa or Nebraska, you and your customers need to know that there are federal and state laws that are applicable to the transportation of diesel fuel and other Class 3 materials that may require...…
[2003; R-2013 | Keywords: Iowa Legislation, Sales Tax, Nexus] General Exemption (Iowa Code 423.3 (43)) 2003 The sales price from the sale of property or of services performed on property which the retailer transfers to a carrier for shipment to a point outside of Iowa, places in the United States mail or parcel post directed...…
[2001; R-2013 | Keywords: Nebraska Legislation, Fees, Contracts] In Nebraska, we achieved success with bill LB146, which changed sections 45-338 in regard to fee limits charged on installment contracts. Previously, the limit was ten dollars. This new legislation permits dealers and other agricultural equipment retailers to charge origination fees on installment contracts up to $100...…
[Author: Mark Othmer, Nebraska Field Director, 2013 | Keywords: Nebraska Legislation, Sales Tax, Trailers] From time to time, the Nebraska Department of Revenue (DOR) reviews rules and regulations that have been promulgated to define and administer sales tax laws enacted by the Unicameral. Such is the case with the recent determination by the DOR with regulation 1-094....…
[Author: Mark Othmer, I-NEDA, Nebraska Field Director, 2013 | Keywords: Nebraska Legislation, Trucking, Oversize Loads] Every spring, it seems like our office receives several calls from dealers concerning oversize loads when trucking equipment. Dealers often call when they are busy delivering new equipment customers purchased over the winter months. Since equipment continues to get wider and longer,...…
[Author: Mark Othmer, Nebraska Field Director, 2014 | Keywords: Nebraska Legislation, Ag Exemption, Parts] On October 1, 2014 the ag sales tax exemption for repair and replacement parts in Nebraska went into effect. While I had hoped that we would receive some guidance from the Nebraska Department of Revenue before this tax change took effect, unfortunately it...…
[Author: Will Rogers, 01.17 | Keywords: Dealer Advocacy, Governmental Affairs, Sales Tax] One topic dealers consistently ask me about is Iowa sales tax exemptions related to agricultural production. While many of you are familiar with how this law works, a quick review may prove useful when dealing with a customer who wants to purchase a...…
[Author: Mark Othmer, 01.17 | Keywords: Nebraska Field Notes, Nebraska Legislature] The first session of the 105th Nebraska Unicameral got underway on January 4, 2017. What is traditionally a day filled with pomp, circumstance and expectations of a smooth session with everyone working in harmony, was soon left in the dust. On the first day,...…
[Author: Tom Junge, 01.17 | Keywords: Iowa Field Notes, Nebraska Power Farming Show] No one was more surprised than me at the terrific outcome of the 10th Annual Nebraska Power Farming Show held December 6-8 in Lincoln, Nebraska. Prior to the show, I spoke with several exhibitors who reported uncharacteristically low attendance at both the summer...…
