Iowa Administrative Code

252.1(1) Incorporation of definitions. To the extent they are consistent with Iowa Code chapter 423G, all words and phrases used in this chapter mean the same as defined in Iowa Code section 423.1. 252.1(2) Chapter-specific definitions. For the purposes of this chapter, unless th…

service furnished by a water utility to a purchaser. This rule is intended to implement Iowa Code section 423G.3. [ARC 9036C, IAB 3/19/25, effective 4/23/25]

252.3(1) Generally. The department is charged with the administration of the tax, subject to the rules, regulations, and direction of the director. 252.3(2) Application of 701—Chapter 11. The requirements of 701—Chapter 11 apply to water utilities in the same manner that those re…

252.4(1) Sales integral to the ability to furnish water service. The water service excise tax applies to the sale of water by piped distribution to consumers or users, including sales of accompanying services that are integral to furnishing water by piped distribution, even if th…

252.5(1) Itemized sales of water service. Water service is furnished for compensation when water service is sold for a separately itemized price. Example A: Itemized sale of water service. Z is an entity that provides water from a well by piped distribution to various homes in th…

water service, and the tax, when collected, shall be stated as a distinct item on any bill, receipt, agreement, or other similar document. The tax shall be identified as the water service excise tax, and the amount of tax paid shall be displayed clearly on the bill, receipt, agre…

sales tax or water service excise tax applies to billings that span across the July 1, 2018, effective date of Iowa Code chapter 423G or the future repeal date described in Iowa Code section 423G.7, the provisions of rule 701—204.7(423) apply. This rule is intended to implement I…

252.8(1) Application of 701—Chapter 202. The requirements of 701—Chapter 202 apply to water utilities in the same manner that those requirements apply to all sellers and retailers making sales subject to state sales tax. 252.8(2) Frequency of return filing and payment of tax base…

252.9(1) Application of 701—Chapter 201. The requirements of 701—Chapter 201 apply to water utilities in the same manner that those requirements apply to all sellers and retailers making sales subject to state sales tax. 252.9(2) Separate water service excise tax permit required.…

253.1(1) Incorporation of definitions. To the extent they are consistent with Iowa Code chapter 423A and this chapter, all other words and phrases used in this chapter shall mean the same as defined in Iowa Code chapter 423A. 253.1(2) Chapter-specific definitions. For purposes of…

701—Chapter 11 apply to retailers required to collect hotel and motel tax in the same manner that those requirements apply to all sellers and retailers making sales subject to state sales tax. This rule is intended to implement Iowa Code section 423A.6. [ARC 9037C, IAB 3/19/25, e…

253.3(1) Incorporation of 701—Chapter 202. Except as otherwise stated in this chapter, the requirements of 701—Chapter 202 apply to retailers required to collect hotel and motel tax in the same manner that those requirements apply to all sellers and retailers making sales subject…

253.4(1) Incorporation of 701—Chapter 201. Except as otherwise stated in this chapter, the requirements of 701—Chapter 201 apply to retailers required to collect hotel and motel tax in the same manner that those requirements apply to all sellers and retailers making sales subject…

253.5(1) Exclusion from facilitation fee; itemization of components of sales price not required. A retailer is not required to separately itemize any component part of the sales price as separate and distinct from the rest of the sales price. Component parts of the sales price co…

253.6(1) Certification of funds. Within 45 days after the date that the monthly returns and payments are due, the director will certify to the treasurer of state the amount of locally imposed tax to be transferred from the general fund to the local transient guest tax fund that i…

This rule is intended to implement Iowa Code chapter 452A. [ARC 9043C, IAB 3/19/25, effective 4/23/25]

definitions apply: “B-20” means biodiesel blended fuel formulated with a minimum percentage of 20 percent by volume of biodiesel, if the formulation meets the standards provided in Iowa Code section 214A.2. A similar notation refers to biodiesel blended fuel containing other perc…

259.10(1) The department will prescribe and furnish forms upon which reports, returns, and applications are to be made to the department under Iowa Code chapter 452A. Claims for refund will be made on forms provided by the department or in any other manner as prescribed by the di…

259.11(1) Requirements for invoices. Whenever an invoice is required to be kept or prepared by Iowa Code chapter 452A or these rules, the invoice must: a. Be prepared by someone other than the purchaser and include the seller’s name, address, and identification number. b. Include…

259.12(1) Generally. Licensees are entitled to a refund of taxes, penalty, and interest erroneously or illegally collected by the department. 259.12(2) Refund requests. The request for refund must be (1) in writing, (2) filed with the department within three years of the time the…

259.13(1) Generally. Iowa Code section 452A.63, which makes all information obtained from reports, returns, or records required to be filed or kept under Iowa Code chapter 452A confidential, applies generally to the director, deputies, auditors, agents, officers, or other employe…

reports, returns, and records; make audits; and determine the correct amount of tax, interest, penalties, and fines due and take all actions authorized to collect the same, subject to review by or appeal to the director. This rule is intended to implement Iowa Code sections 452A.…

procedure before the department is governed by Iowa Code chapter 17A and 701—Chapter 7. This rule is intended to implement Iowa Code chapter 17A. [ARC 9043C, IAB 3/19/25, effective 4/23/25]

or any portion of a refund claim, or any other department action, except licensing, which may culminate in a contested case proceeding, must file an appeal as directed in 701—Chapter 7. If a taxpayer fails to timely appeal a notice of assessment, the taxpayer may make payments pu…

secure the collection of the tax, require any person subject to the tax to file with the department a bond in an amount as the director may fix, or in lieu of the bond, securities approved by the director in an amount as the director may prescribe. Pursuant to the statutory autho…

259.18(1) Requirements for license. In order to become licensed as a fuel supplier, restrictive supplier, importer, exporter, blender, dealer, or user, the person must electronically file an application with the department. The license is valid until revoked or canceled and is no…

259.19(1) Reinstatement generally. A license canceled for cause will be reinstated only on such terms and conditions as the cause may warrant. Terms and conditions will include payments of any applicable fuel tax liability including interest and penalty that is due the department…

259.2(1) The records required to be kept by this rule must be preserved for a period of three years and will be open for examination by the department during this period of time. The department, after an audit and examination of the records, may authorize the disposal of the reco…

fuel or undyed special fuel is subject to refund when used in implements of husbandry as defined in Iowa Code section 321.1(32). A vehicle as defined in Iowa Code section 321.1(90) is not an implement of husbandry. The department of revenue, the state department of transportation…

than is due, the licensee must return the excess tax paid to the purchaser if the tax has not been paid to the department. If the tax has been paid to the department, the department will return the excess tax paid to the consumer upon appropriate documentation. This rule is inten…

259.22(1) The department is required to compile information reported to it by retail dealers regarding the number of gallons of the various fuel classifications sold by retail dealers in the previous calendar year and submit a report to the governor and the legislative services a…

259.3(1) The department has the right and duty to examine or cause to be examined the books, records, memoranda, or documents of a taxpayer for the purpose of verifying the correctness of a return filed or determining the tax liability of any taxpayer. 259.3(2) The costs incurred…

259.4(1) Inadequate records. In the event the taxpayer’s records are lacking or inadequate to support any return filed by the taxpayer, or to determine the taxpayer’s liability, the department has the power to estimate the gallonage upon which tax is due. 259.4(2) Determination o…

259.5(1) The returns, reports, remittances, applications, or requests required under Iowa Code chapter 452A or 701—Chapters 259 through 262 shall be filed through GovConnectIowa unless otherwise required by the department. 259.5(2) Such documents provided by mail are deemed filed…

259.6(1) After a return is filed, the department must examine it, determine fuel taxes due, and give notice of assessment to the taxpayer. Iowa Code sections 452A.64 and 452A.67 and rule 701—259.5(452A) contain additional information on the failure to file returns and the period …

required return or tax payment or both. 259.7(1) Application for extension. In order for an extension to be granted, the application requesting the extension must be filed, in writing, with the department prior to the due date of the return or remittance. In determining whether a…

on failure to timely file a return or failure to timely pay the tax. Rule 701—10.8(421) contains information on penalty exceptions. Rule 701—10.72(452A) contains additional information on interest on refunds. Rule

to the interest. The balance, if any, will then be applied to the amount of tax due. If a taxpayer remits a payment on or before the due date, but the payment is insufficient to discharge the tax liability, the entire amount of the payment applies to the tax, and the penalty and …

259.10(2) If the information required in these documents is presented to the department on forms or in a manner other than the prescribed form, or approved substitute form, the return, application, or claim for refund or credit shall not be deemed “filed.” The forms may be furnis…

by a public agency to the setoff program, the amount of the qualifying debt must be $50 or more. The minimum amount is the total of all qualifying debt(s) owed to one public agency by one obligor. This rule is intended to implement Iowa Code section 421.65. [ARC 7080C, IAB 10/4/2…

26.10(1) A fee of $7 shall be paid by participating public agencies to the department for each setoff. The public agency shall be charged the fee each time a public payment is set off and applied to the public agency’s qualifying debt. The fee shall be taken by the department out…

the department, reaches an amount that is less than $50, the debt will be removed from the setoff program. The minimum amount is the total of all qualifying debt(s) owed to one public agency by one obligor. This rule is intended to implement Iowa Code section 421.65. [ARC 7080C, …

qualifying debt to the department for setoff, that public agency shall enter into a memorandum of understanding with the department. The department will reject any debts submitted by a public agency prior to the effective date of the memorandum of understanding. Prior to entering…

26.4(1) At the time a qualifying debt is submitted to the department for setoff, the public agency must certify to the department the information required by Iowa Code section 421.65(2)“a,” the amount of each obligor’s liability to the public agency, the date the debt became qual…

qualifying debt for participation in the setoff program shall timely notify the department of any change in the status of the public agency’s individual debts submitted to the setoff program. This notification shall be made at the time described in the memorandum of understanding…

priority shall be determined pursuant to the priority provisions found in Iowa Code section 421.65(4). Among claims entitled to the same priority pursuant to the priority provisions found in Iowa Code section 421.65(4), priority shall be determined by the date the debt became a q…

26.7(1) 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 421.65(2)“e.” Challenges shall be submitted within 15 days of the date of the notice. Challenges may be …

26.8(1) Requests for division of a public payment subject to setoff 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 421.65(2)“e.” Requests for division shall be submitted …

public agency prior to the effective date of Iowa Code section 421.65 shall be governed by the statute, rules, and procedures related to Iowa Code section 8A.504, even if such procedures continue after the effective date of Iowa Code section 421.65. This rule is intended to imple…

260.1(1) Fuel distribution percentages. a. Ethanol distribution percentage. (1) Except as otherwise provided in this paragraph, this paragraph shall apply to the excise tax imposed on each gallon of motor fuel used for any purpose for the privilege of operating motor vehicles in …