Iowa Administrative Code

mitigation program to assist governmental entities in undertaking approved projects. This chapter sets forth rules for the department of revenue’s administration of the calculation and remittance of the sales tax increment funding. The Iowa department of homeland security and eme…

chapter 418. Additionally, the following definitions apply: “Corresponding quarter” means the quarter in the base year and the quarter in the year in which the increment is measured that end in the same month. For example, if the base year is fiscal year 2013 and the year in whic…

272.3(1) Sales tax increment calculation formula. The department will calculate quarterly the amount of the sales tax increment as described in Iowa Code section 418.11(2). To do so, the department will determine the base year for the flood mitigation project when the period for …

272.4(1) Deposits. For each governmental entity that establishes a flood mitigation project under Iowa Code chapter 418, the department will deposit collected funds into each applicable area’s sales tax increment fund as described in Iowa Code section 418.12(3). Additionally, mon…

272.5(1) Administrative fee. Pursuant to Iowa Code section 423.2A(3), the department will retain an administrative fee from the amount it would otherwise distribute to the flood mitigation program. 272.5(2) Amount retained. The amount retained each quarter will be the total of th…

much as $100 million in state hotel and motel and state sales tax revenues from revenue-generating projects within certain districts. The economic development authority board is authorized to oversee the implementation and administration of certain provisions of this program, inc…

273.2(1) State sales tax. For districts established before July 1, 2020, the department will calculate the state sales tax revenues as described in Iowa Code section 15J.5(1)“b”(1). For those established on or after July 1, 2020, the calculations are as described in Iowa Code sec…

273.3(1) Deposits. The department shall deposit moneys into the appropriate district fund as described in Iowa Code section 15J.6; however, moneys shall not be deposited in the fund before the period for processing returns is complete. 273.3(2) Late-filed returns. Moneys describe…

revenue will be remitted by the department and deposited into reinvestment project funds as described in Iowa Code section 15J.7. Moneys deposited in the fund shall only be used to fund projects as described in Iowa Code section 15J.7(1) and not those projects described in Iowa C…

273.5(1) Cessation of deposits. a. The department shall cease to deposit state sales tax revenues and state hotel and motel revenues once the limitations described in either Iowa Code section 15J.8(1) or 15J.8(2) are met. b. The department shall cease to deposit new tax revenues …

273.6(1) Administrative fee. Pursuant to Iowa Code section 423.2A(3), the department will retain an administrative fee from the amount it would otherwise distribute to the reinvestment district program. 273.6(2) Amount retained. The amount retained each quarter will be the total …

administration of the calculation, collection, and distribution of funds to be deposited for use to fund urban renewal projects as described in Iowa Code chapter 423B. For purposes of this chapter, “local sales and service tax” means the local tax imposed by a jurisdiction pursua…

in the base year and the revenue growth in subsequent fiscal years, the department will calculate sales as described in Iowa Code section 423B.10(3). [ARC 8167C, IAB 7/24/24, effective 8/28/24]

274.3(1) Within at least 90 days following the adoption of an ordinance, an eligible city must notify the director of the department of revenue of its intent to pursue funding for an urban renewal project based upon the increase in local sales and services tax revenue. The notifi…

revenue in identifying retail establishments in the urban renewal area that are collecting the local sales and services tax. The department of revenue will identify sales tax permit holders within the urban renewal area using the geographic information system boundary file, if av…

taxable sales amount is as follows: 274.5(1) The base year taxable sales and services amount will be the total taxable sales and services subject to the local sales and services tax that are made by retail establishments within the urban renewal area during the base year. 274.5(2…

growth increment amount for the urban renewal area will be computed for each fiscal year following the base year. The annual local option sales and services tax growth increment amount is equal to the current year taxable sales and services subject to the local sales and services…

local sales and services tax growth amount for urban renewal areas in jurisdictions that have enacted ordinances pursuant to Iowa Code section 423B.10 shall be determined annually and shall be distributed to the city within 120 days following the end of the fiscal year in which t…

rebates of qualifying sales made at sanctioned automobile racetrack facilities. Definitions of key terms may be found in Iowa Code section 423.4(5)“a.” 275.1(1) Affidavit by owner or operator. The owner or operator of an automobile racetrack facility seeking a rebate allowed unde…

275.2(1) Generally. a. Rebate approval. An entity whose project pursuant to Iowa Code section 15F.207 is reviewed and recommended by the economic development authority and approved by the enhance Iowa board is entitled to rebates of qualifying sales tax in accordance with Iowa Co…

may be made to the owner or operator of a raceway facility that meets the requirements of Iowa Code section 423.4(11). 275.3(1) Definitions. For purposes of this rebate, unless further defined below, the terms used in this rule mean the same as defined in Iowa Code section 423.4(…

and emergency management and the secretary of state are authorized and tasked by the legislature to jointly administer and oversee mutual aid among the political subdivisions of Iowa, other states and the federal government and to ensure the state government and its departments a…

are adopted by reference. [ARC 7626C, IAB 2/7/24, effective 3/13/24]

276.3(1) Out-of-state business. An out-of-state business conducting operations within the state solely for the purpose of performing disaster or emergency-related work during a disaster response period does not establish a level of presence that would subject the out-of-state bus…

producers of biodiesel for calendar year 2012 to the ending year specified in Iowa Code section 423.4(9) “e.” 277.1(1) Qualifications for the refund. To be eligible for the refund, a biodiesel producer that produces biodiesel in Iowa must meet the criteria listed in Iowa Code sec…

the high quality jobs program or workforce housing tax incentives program by the economic development authority, a refund of sales and use tax is available. 278.1(1) Sales and use tax eligible for refund. Eligible businesses can receive a refund of the sales and use tax paid for …

Iowa Code chapters 9C and 91C. 28.1(1) Definitions. “Nonlocal business entity” is either an out-of-state contractor or a transient merchant as those terms are defined in this subrule. “Out-of-state contractor” means a general contractor, subcontractor, architect, engineer, or oth…

28.1(7) Sureties and state departments other than revenue. If there exist taxes payable by an out-of- state contractor and these taxes are payable to a department or subdivision of state government other than the department of revenue, that department or subdivision shall be the …

tangible personal property, specified digital products, and services as described in Iowa Code section 423.5 on which sales tax was not collected. This would most commonly occur if the good or service was purchased from a retailer that does not have nexus with Iowa. This rule is …

tangible personal property, specified digital products, or a taxable enumerated service for use in Iowa from the federal government or any of its agencies is liable for the payment of Iowa use tax and shall report and remit the tax due on a sales and use tax return furnished by t…

current. Tangible personal property purchased outside the state and consumed in creating power, heat or steam for processing tangible personal property or for generating electric current intended to be sold ultimately at retail is exempt from sales and use tax. If the property pu…

282.4(1) Definitions. “Native Americans” means all persons who are descendants of and who are members of any recognized tribe. “Settlement” means all lands recognized as a tribal government settlement or reservation within the boundaries of the state of Iowa. 282.4(2) Use tax. Ou…

property that becomes an integral part of a vehicle as described in Iowa Code section 423.6(8) is exempt from use tax, subject to the limitations provided in Iowa Code section 423.6(8). However, this rule does not exempt the sale of the tangible personal property used from the im…

rental of vehicles that do not meet the definition of transportation equipment as defined in Iowa Code section 423.15(3) will be sourced for tax purposes as described in Iowa Code section 423.17. This rule is intended to implement Iowa Code sections 423.15(3) and 423.17. [ARC 771…

282.7(1) Sales of mobile homes, manufactured housing, and related property and services for one package price. This rule is applicable only to mobile homes and manufactured housing sold as tangible personal property rather than in the form of real property. If, at the time of the…

as real estate. Tax is imposed on the use of “manufactured housing” in Iowa. 282.8(1) Definition. “Manufactured housing” means the same as defined in Iowa Code section 321.1. 282.8(2) Tax treatment of manufactured housing that is similar to the tax treatment of mobile homes. a. M…

285.1(1) An auctioneer in making a sale, whether of tangible personal property, specified digital products, or realty, is by virtue of this employment making the sale as the agent of the principal. 285.1(2) Where an auctioneer is conducting a sale and the principal meets the requ…

tax. Envelopes that are not primarily used for advertising are taxable. The primary use of the envelopes should control whether they will be taxable or exempt. Example 1: XYZ mails coupons and advertisements to persons giving discounts on a certain item that is sold at retail. Th…

285.11(1) Sales price of newspapers. The sales price from the sales of newspapers, free newspapers, and shoppers’ guides are exempt from tax. The sales price from the sales of magazines, newsletters, and other periodicals that are not newspapers are taxable. 285.11(2) General cha…

285.12(1) Sales of chemicals, solvents, sorbents, or reagents consumed in the maintenance or repair of fabric or clothing are exempt from tax. See rule 701—200.1(423) for definitions of the terms “chemical,” “solvent,” “sorbent” or “reagent.” This subrule’s exemption is mainly ap…

parties. The first party is a consumer located inside Iowa. The second party is a retailer located outside the state. The third party is a supplier who may be located inside or outside of Iowa. A drop shipment sale occurs when the consumer places an order for the purchase of tang…

285.2(1) Florists are engaged in the business of selling tangible personal property and specified digital products at retail. The sales price from the sale of flowers, wreaths, bouquets, potted plants and other items of tangible personal property and specified digital products ar…

285.3(1) Student fraternities and sororities are not considered to be engaged in the business of selling tangible personal property at retail when they provide their members with meals and lodging for which a flat rate or lump sum is charged. A person engaged in the selling of fo…

business of selling tangible personal property, specified digital products, and funeral services. Examples of the tangible personal property sold by a funeral director include but are not limited to caskets, other burial containers, flowers, and burial clothing. “Funeral services…

Physicians, dentists, surgeons, ophthalmologists, optometrists, and opticians are not liable for sales tax on services rendered, including but not limited to examinations, consultations, diagnosis, and surgery. The purchase of materials, supplies, and equipment by these persons i…

285.6(1) Mandatory warranties. A warranty is a mandatory warranty when the buyer, as a condition of the sale, is required to purchase the warranty from the seller. When the sale of tangible personal property, specified digital products, or services includes the furnishing or repl…

285.7(1) Casual sales by persons not retailers or by retailers outside the regular course of business. a. Exemptions. Casual sales are exempt from Iowa sales and use taxes except for the casual sale of vehicles subject to registration, aircraft, and other vehicles listed in Iowa …

285.8(1) Definitions. “Native Americans” means all persons who are descendants of and who are members of any recognized tribe. “Settlement” means all lands recognized as a tribal government settlement or reservation within the boundaries of the state of Iowa. 285.8(2) Retail sale…

285.9(1) In general. a. Applicability of tax. For the purposes of this rule, the sales price of the tangible personal property, specified digital products, and services found within Iowa Code section 423.2 is subject to tax. b. Definitions. “Program” is interchangeable with the t…

administrative procedure Act and aid in the effective and efficient administration and enforcement of the laws of this state and other activities of the department. These rules govern the practice, procedure, and conduct of the rulemaking and requests for waiver of rules and cert…