Iowa Administrative Code

a. The department may deny a permit to any applicant who is, at the time of application, substantially delinquent in paying any tax due that is administered by the department or the interest or penalty on the tax. b. If the applicant is a partnership, the department may deny the …

235.1(1) Purpose. This chapter sets forth the department of revenue’s rules on the administration and regulation of the sale of devices and the imposition, collection, and remittance of excise tax on those devices. 235.1(2) Definitions. Unless otherwise indicated in the rule or r…

provisions of any applicable federal or state law. This rule is intended to implement Iowa Code section 453E.2(4). [ARC 9710C, IAB 11/12/25, effective 12/17/25] [Filed ARC 9710C (Notice ARC 9570C, IAB 9/17/25), IAB 11/12/25, effective 12/17/25]

235.2(1) Device. “Device” is defined in Iowa Code section 453E.1 and provides the factors the department will consider when determining whether a particular product is subject to regulation under Iowa Code chapter 453E and these rules. 235.2(2) Examples. Example 1: Retailer A hol…

235.3(1) Applications for permits in general. The application forms for all permits issued under Iowa Code chapter 453E are available from the department. Permit application forms are to be submitted in accordance with paragraph 235.3(1)“b.” a. Each permit application, whether fo…

235.4(1) No proration or refund of permit fees. Permit fees for device retailer and device delivery sale permits are not subject to proration or refund in the event the permit is canceled, suspended, or revoked. 235.4(2) Administrative procedure for permit suspensions and revocat…

235.5(1) Age verification. Before completing the sale of devices, device retailers must verify all purchasers are aged 21 or older as required in Iowa Code section 453E.3(8)“a.” 235.5(2) Display. a. Definitions. “Generally display” includes displaying devices on shelves, counters…

235.6(1) Verification of recipient’s age. a. Prior to finalizing a sale to the purchaser, the device delivery seller must verify that the purchaser is at least 21 years of age in one of the following ways: (1) Use a commercially available database, or aggregate of databases, that…

235.7(1) Device excise tax. Retail sales and delivery sales of devices are subject to a device excise tax of 40 percent of the retail sales price of the device. In addition to the device excise tax, retail sales and delivery sales of devices are subject to the state sales tax and…

This rule is intended to implement Iowa Code sections 453E.4 and 453E.5. [ARC 9710C, IAB 11/12/25, effective 12/17/25] 701—235.8(453E) Filing returns and reports; payment of tax. 235.8(1) Device excise tax return filing. a. Due date. Every device retailer and device delivery sell…

235.9(1) Records retention generally. Every device retailer and device delivery seller shall keep, preserve, and make available to the department any records required by Iowa Code chapter 453E for a period of at least five years. 235.9(2) Requirements. Records kept, preserved, or…

definitions as Iowa Code section 272D.1: 1. Certificate of noncompliance. 2. Liability. 3. License. 4. Licensee. 5. Licensing authority. 6. Obligor. 7. Person. 8. Unit. 9. Withdrawal of a certificate of noncompliance. [ARC 7835C, IAB 4/17/24, effective 5/22/24]…

noncompliance, the unit must send a notice to a person in accordance with Iowa Code section 272D.3. [ARC 7835C, IAB 4/17/24, effective 5/22/24]

noncompliance by requesting a conference. Upon receiving a timely written request for a conference, the unit shall grant the person a stay of the issuance of a certificate of noncompliance. The stay shall remain in effect pending the decision of the unit under Iowa Code section 2…

24.4(1) If the person fails to appear at the conference, the unit shall issue a certificate of noncompliance. If the person does not timely request a conference or pay the amount of liability owed within 20 days of the date the notice was postmarked, the unit shall issue a certif…

payment of the liability owed pursuant to Iowa Code section 272D.5. [ARC 7835C, IAB 4/17/24, effective 5/22/24]

24.6(1) If the unit mails a notice to a person and the person requests a conference, the unit shall issue a written decision if any of the conditions in Iowa Code section 272D.6(1) exist. 24.6(2) Mailing of decision. The unit shall send a copy of the written decision as described…

24.7(1) The unit shall issue a certificate of noncompliance to any appropriate licensing authority as required by Iowa Code section 272D.7. 24.7(2) The suspension, revocation, or denial shall be effective no sooner than 30 days following the date of notice to the person. [ARC 783…

requirements and procedures of Iowa Code section 272D.8. [ARC 7835C, IAB 4/17/24, effective 5/22/24]

the unit or following issuance of notice by the licensing authority with the district court as described in Iowa Code section 272D.9. Actions initiated by the unit under this chapter shall not be subject to contested case proceedings or further review pursuant to Iowa Code chapte…

240.1(1) Definitions. For purposes of this chapter, words and terms have the same meanings as defined in Iowa Code section 453B.1. 240.1(2) Purchases of stamps. a. Location. Stamps that are capable of being affixed to taxable substances are offered for sale to members of the publ…

240.2(1) Refund date. At any time up to 30 days after the expiration date as indicated on the stamp, any unused stamp may be returned to the department and a refund requested in accordance with Iowa Code section 453B.14 and these rules. 240.2(2) Refund information. a. Persons see…

administrative wage assignment or an administrative levy against accounts. [ARC 7835C, IAB 4/17/24, effective 5/22/24]

account can only be made by an obligor or a person named on the account. Challenges may be submitted to the department via the manner described on the challenge notice furnished to the obligor by the department pursuant to Iowa Code section 421.17A(3) or 421.17B(3). [ARC 7835C, I…

central collections unit of the department. This review is not subject to the provisions of Iowa Code chapter 17A. 25.3(1) Upon receipt of a timely challenge, the central collections unit of the department will review the obligor’s account and contact the obligor. If the central …

written challenge to an administrative levy within ten days of the date of the notice. Challenges must be submitted to the department in the manner described on the notice furnished by the department to the obligor or account holder of interest. [ARC 7835C, IAB 4/17/24, effective…

a mistake of fact, may include but are not limited to: 1. The challenging party has the same name as the obligor but is not the obligor. 2. The challenging party does not have an interest in the account that is being seized. 3. The amount listed in the notice to the obligor is gr…

“Dealer” means the same as defined in Iowa Code section 321.1(17). “Directly and primarily used” means the same as described in rule 701—215.15(423). “Optional service agreement” means an arrangement to prepay or pay for a predetermined price for future vehicle services, includin…

250.10(1) Affidavit. 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. 250.10(2) Exemption categories. Exemptio…

250.11(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. 250.11(2) Factors that indicate a business is a shell business include but are not limited to a lack of specific business activity or purpos…

250.12(1) Dealer purchase for resale or service use. 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 ma…

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 lo…

250.14(1) The fee for new registration on leased vehicles is a liability of the owner (lessor) of the vehicle and not the lessee. 250.14(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 …

exclusively for interstate commerce. 250.15(1) Lease types. 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 f…

250.16(1) Vehicles registered or operated under Iowa Code chapter 326 and used substantially in interstate commerce are exempt from the fee for new registration under Iowa Code section 321.105A(2) “c”(5). 250.16(2) The period for substantiating the mileage to qualify for the exem…

250.17(1) Vehicles purchased with no intent for use in Iowa. 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 determ…

Transactions between two business entities may be exempted from the fee for new registration if the requirements described in Iowa Code section 321.105A(2)“c”(3) are met. Example A: Person F owns and operates a family farm as a sole proprietorship and wants to transfer assets (in…

250.19(1) Homemade vehicles are exempt from the fee for new registration as described in Iowa Code section 321.105A(2)“c”(16). 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 homem…

250.2(1) Exclusions. “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—250.3(321). c. Gasoline, if separatel…

250.20(1) A glider kit vehicle is exempt from the fee for new registration upon sale or transfer by the person who purchased the parts and assembled the vehicle if sales or use tax was paid when the parts were purchased and the vehicle has never been registered previously. 250.20…

250.3(1) Trades, generally. a. A trade-in allowance is excluded from the purchase price if the requirements of Iowa Code section 321.105A(2)“a”(2) 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 …

250.4(1) Generally. A manufacturer’s rebate can be used to reduce the purchase price of a vehicle subject to the fee for new registration. 250.4(2) Qualifications. a. To qualify, the rebate must be: (1) A return of an amount that the purchaser would otherwise have paid; (2) In th…

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. [ARC 9034C,…

tax must meet both of the following requirements: 250.6(1) It must be imposed upon the purchaser and be due at the time of the retail sale. 250.6(2) It must be billed or charged as a separate item. This rule is intended to implement Iowa Code section 321.105A. [ARC 9034C, IAB 3/1…

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. 250.7(1) Off-reservation delivery. If the vehicle is delivered off a…

250.8(1) Dealer-installed equipment. 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…

250.9(1) Itemization. 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. 250.9(2) Nonitemization. I…

same meaning as defined in Iowa Code section 423C.2. In addition, the following definitions and characterizations of words apply. “Automobile” means the same as defined in Iowa Code section 423C.2(2) and does not include delivery trucks designed primarily to carry cargo rather th…

251.2(1) Generally. A tax at the rate of 5 percent is imposed on the rental price of any automobile if the rental transaction is taxed under Iowa sales or Iowa use tax law. The tax imposed is in addition to the Iowa state sales or use tax. However, if the rental transaction is no…

from the user or from any other person paying the rental price for an automobile. The lessor shall collect the tax by adding the tax to the rental price of the automobile. When collected, the tax shall be stated on any billing or invoice as a distinct item separate and apart from…