Dear Friends, On May 5, 2018, the Iowa Tax Reform Bill was passed by the Iowa House and Senate and Governor Kim Reynolds signed the bill into law on May 30th. This bill contains tax law changes that begin to impact the 2018 tax year and continue to change the tax law up to 2023, depending...…
[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...…
[2-15 | Keywords: Iowa Legislation, Sales Tax, ATV] Registration Iowa Code 321I.9 exempts ATVs and OUVs (Off-road Utility Vehicles) used exclusively for agricultural purposes from titling and registration requirements. However, registration may be required by insurance companies and prove useful at a future date when the owner wishes to sell, by assisting with the verification...…
[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...…
[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...…
