The Iowa Department of Revenue previously submitted the following proposed rules to the Iowa Legislature. The following have been adopted and filed, effective August 28, 2024. These rules are being promulgated as part of the Department's Executive Order 10 review. See individual notices for details.
- Agricultural Rules This rulemaking rescinds Chapter 214 and adopts a new Chapter 214, which describes the Department’s interpretation of the underlying statutes to aid the public in understanding the application of sales and use tax statutes to taxpayers engaged in agricultural activity. The Department revised rules to provide clarification and remove obsolete, unnecessary, and duplicative statutory language.
- Bundled Transactions This rulemaking readopts Chapter 206. This chapter was recently updated, and the Department has determined that it does not contain language that is obsolete, unnecessary, or duplicative of statutory language. The chapter describes the Department’s interpretation of the underlying statute to help the public understand the taxability of bundled transactions. The rules reduce uncertainty about how tax applies when items are sold together.
- Elements Included in and Excluded from a Taxable Sale and Sales Price This rulemaking readopts Chapter 203. The Department revised the chapter to remove portions of the rules that were obsolete, unnecessary, or duplicative of statutory language. The chapter describes the Department’s interpretation of the underlying statutes to help the public understand elements included in and excluded from a taxable sale. These rules reduce uncertainty about what constitutes sales price.
- Exemptions Primarily Benefiting Manufacturers & Other Persons Engaged in Processing This rulemaking rescinds and readopts Chapter 215, which describes the Department’s interpretation of the underlying statutes to aid the public in understanding the taxability and exemption provisions and processes that are primarily applicable to taxpayers engaged in processing and manufacturing. The Department revised the rules to provide clarification and remove obsolete, unnecessary, and duplicative statutory language and renumbered some rules due to other changes and for organizational reasons.
- Exemptions Primarily of Benefit to Consumers This rulemaking rescinds and adopts a new Chapter 220. The Department revised the chapter to remove portions of the rules that the were obsolete, unnecessary, or duplicative of statutory language. The chapter describes the Department’s interpretation of the underlying statutes to help the public understand exemptions that primarily benefit consumers.
- Filing Returns and Payment of Tax This rulemaking rescinds Chapter 202 and adopts a new Chapter 202. The Department revised the chapter to remove portions of the rules that the Department determined were obsolete, unnecessary, or duplicative of statutory language. The Department also added new language to provide additional clarity. The chapter describes the procedures for filing sales and use tax returns. The rules are intended to help the public understand the process for filing sales and use tax returns.
- Flood Mitigation Program This rulemaking rescinds Chapter 272 and adopts a new Chapter 272, which consists of rules relating to the Department’s role in the administration of the Flood Mitigation Program. These rules are required under Iowa Code chapter 418. These rules interpret the underlying statutes about the calculation and remittance of the sales tax increment funding to projects approved under Iowa Code chapter 418. The Department revised the rules to provide clarification and removed portions of the rules that were determined unnecessary, obsolete, and duplicative of statutory language. The Department further added a rule to provide clarification about the administrative fee authorized under Iowa Code section 423.2A(3) that the Department retains from the amount it would otherwise distribute for the Flood Mitigation Program.
- Governments and Nonprofits; Taxable and Exempt Sales This rulemaking readopts Chapters 212 and 285 and rescinds and reserves Chapter 284. The Department revised Chapters 212 and 285 to remove portions of the rules that were obsolete, unnecessary, or duplicative of statutory language. These chapters describe the Department’s interpretation of Iowa Code chapter 423 as it applies to certain types of exempt and taxable sales. Chapter 212 provides guidance on sales involving government entities and nonprofits. Chapter 285 provides guidance on certain types of sales based on the type and method of transaction. After review, the Department determined there is no benefit to retaining Chapter 284 and rescinds and reserves the chapter; however, the Department also determined that several rules from Chapter 284 will be repromulgated into Chapters 210, 212, and 219. Chapters 210 and 219 are not included in this Notice but are covered herein.
- Local Option Sales Tax Urban Renewal Projects This rulemaking readopts Chapter 274. The chapter provides the Department’s rules for administering the Local Option Sales Tax (LOST) Urban Renewal Projects. The rules provide explanations to local governments and the public about the process for the calculation, collection, and distribution of funds used for the projects as well as the information required of local governments to assist the Department in this process. The Department revised the rules to remove portions that were unnecessary, obsolete, or duplicative of statutory language. The Department also renumbered some rules due to the other edits and for organizational reasons.
- Miscellaneous Nontaxable Transactions This rulemaking rescinds and adopts a new Chapter 221. The Department revised the chapter to remove portions of the rules that were obsolete, unnecessary, or duplicative of statutory language. The Department also moved rules from other chapters that fit with the topic of this chapter. The chapter describes the Department’s interpretation of the underlying statute to help the public understand the exemption of miscellaneous nontaxable transactions that do not fit under any other chapter.
- Miscellaneous Taxable Sales This rulemaking rescinds Chapter 213 and adopts a new Chapter 213. The Department revised the chapter to remove portions of the rules that were obsolete, unnecessary, or duplicative of statutory language. The chapter describes the Department’s interpretation of the underlying statute to help the public understand the taxability of miscellaneous types of sales. These rules reduce uncertainty about what is subject to tax and what is exempt.
- Multilevel Marketer Agreements The rulemaking rescinds Chapter 208 and adopts a new Chapter 208 regarding multilevel marketer agreements. These agreements allow multilevel marketer companies to enter into contracts with the Department to collect and remit sales tax. The rules help the companies understand eligibility requirements for the multilevel marketer program. This rulemaking repromulgates the existing Chapter 208 with updated language and an additional rule to provide additional clarity that the Department determined was necessary.
- Purchases by Businesses This rulemaking repromulgates Chapter 210. The Department revised the chapter to remove portions of the rules that were obsolete, unnecessary, or duplicative of statutory language. This chapter also includes rules that were previously in other chapters that the Department has determined are more closely related to the subject matter of this chapter. This chapter describes the Department’s interpretation of the underlying statute to help the public understand the taxability of purchases by businesses.
- Reinvestment Districts Program This rulemaking rescinds Chapter 273 and adopts a new Chapter 273, which consists of rules relating to the Department’s role in the administration of the Reinvestment Districts Program. These rules are required under Iowa Code chapter 15J. These rules interpret the underlying statutes about the calculation and remittance of the sales tax revenues to reinvestment district and reinvestment project funds pursuant to Iowa Code chapter 15J. The Department revised the rules to provide clarification and remove portions of the rules that were unnecessary, obsolete, and duplicative of statutory language. The Department also renumbered some rules due to other edits and for organizational reasons and added a rule to provide clarification about the administrative fee authorized under Iowa Code section 423.2A(3) that the Department retains from the amount it would otherwise distribute to the Reinvestment Districts Program.
- Resale and Processing Exemptions Primarily of Benefit to Retailers This rulemaking readopts Chapter 225. This chapter provides the Department’s interpretation of the underlying statutes and how those statutes apply to retailers who qualify for a resale or other sales or use tax exemptions on certain purchases in order to aid retailers’ understanding of the underlying statutes and to reduce uncertainty about the application of certain exemptions to retailers’ purchases. The Department added to the rules clarification and removed portions that were determined unnecessary, obsolete, or duplicative of statutory language. The Department also renumbered some rules due to those changes and for organizational reasons.
- Sales and Use Tax on Construction Activities This rulemaking rescinds and readopts Chapter 219, which describes the Department’s interpretation of the underlying statutes to aid the public in understanding the application of sales and use tax statutes that are primarily applicable to taxpayers engaged in construction activity. The Department revises the rules to provide clarification and to remove language that is obsolete, unnecessary, and duplicative of statute. Included within the revisions is an addition to rule 701—219.7(423) from rule 701—281.3(423). The Department determined that Chapter 281 was no longer necessary and should be rescinded since many of the rules in that chapter were unnecessary, obsolete, or duplicative of statutory language. The Department determined that it would retain and repromulgate rule 701—281.3(423) on mobile homes and manufactured housing and add that to rule 701—219.7(423) with revisions since the subject matters of these rules are similar and would allow the public an easier means to find the information. The Notice on Chapter 281 is also published herein. The Department also renumbered some rules due to other edits and for organizational reasons.
- Sales and Use Tax Permits This rulemaking rescinds Chapter 201 and adopts a new Chapter 201 related to sales and use tax permits. Chapter 201 describes the requirements surrounding sales and use tax permits. The rules in this chapter are intended to help the public understand how to obtain a permit and what is required to obtain one. The citation in subrule 201.2(3) to 701—Chapter 19 refers to a chapter that was recently adopted in a separate rulemaking, ARC 7101C.
- Taxable Services This rulemaking rescinds Chapter 211 and adopts a new Chapter 211. The Department amends the chapter to remove portions of the rules that were obsolete, unnecessary, or duplicative of statutory language. The chapter describes the Department’s interpretation of the underlying statute to help the public understand the taxability of services.
- Underground Storage Tank Rules Incorporated by Reference The Department was directed to rescind Chapter 289 because the underlying statute had been repealed. Public comment was received on this chapter's rulemaking process, however no changes from the Notice were made.
This information was sent via GovDelivery to those subscribed to receive Law & Policy updates from the Department. To receive notifications of resources and guidance issued by the Department, subscribe to updates by selecting the tax topics of interest.