Administrative Orders

The Department is charged by statute with many administrative duties, some of which it accomplishes by taking administrative actions or issuing administrative orders. Depending on what the statute requires, the administrative actions or orders can be either requested of or initiated by the Director. This page also includes judicial reviews of Director's Orders from the current year.

The following orders are from the past year. All orders from previous years can be found in the Iowa Tax Research Library

Administrative Orders

Petitioner, a temporary employment agency, inquired whether its temporary employees' services fall within the enumerated, and therefore taxable, service of "machine operator." Petitioner asked whether its employees would be considered machine operators when their service consisted of the use of a computer, including extensive use, but which is not the main function of their job. The Director refused to issue a Declaratory Order because the questions presented were over-broad and could be more properly resolved through other proceedings, as well as the information provided was insufficient in order for the Director to adequately respond to the inquiries.

Date: 2022-11-04

Petitioner, a self-storage facility, requested a declaratory order to determine the taxability of: (1) the rental of a self-storage unit, (2) certain other property and services related to the rental of such a unit, (3) rentals of airplane hangars and RV storage, and (4) storage units provided to tenants by apartment complexes. The Petition also inquired as to the validity of certain portions of Iowa Administrative Code rule 701—26.78. The Director refused to issue a Declaratory Order because the questions presented would be more property resolved through other proceedings and the information provided was insufficient upon which to issue an order.

Date: 2022-11-04

The Iowa District Court for Polk County affirmed the Department’s denial of sales tax refunds filed by the Iowa State Association of Counties. The taxpayer was not an exempt government instrumentality under Iowa Code section 423.3(31). Government did not sufficiently control the detailed performance of the taxpayer. And other factors did not demonstrate that the taxpayer was an exempt government instrumentality. ISAC did not appeal the district court’s ruling.

Date: 2022-11-04

The Taxpayer appealed the Department's denial of a renewable energy tax credit based on a ten-year limitation period pursuant to Iowa Code section 476C.5 and Iowa Administrative Code rule 701—42.28. An Administrative Law Judge (ALJ) granted in part and denied in part both the Taxpayer's and Department's motions for summary judgment, finding the Department's rule was inconsistent with the statute and the statute controlled, enabling the taxpayer to claim the tax credit for calendar years 2018 and 2019 but not for calendar year 2020. Upon review, the Director adopted the ALJ's Proposed Summary Judgment Order and added that the Department's rule on the tax credit altered the meaning of the statute rather than interpreting it, exceeding its authority.

Date: 2022-11-04

Taxpayer petitioned the Director to extend the time period to amend its fourth quarter sales tax return. Upon review, the Director denied the taxpayer's request as the petition did not conform to Iowa Administrative Code rule 701—7.28(8)"b"(2)"2" by providing a citation to the relevant rule to be waived. Further, Iowa Code section 423.47 requires refund claims to be filed within three years after the tax payment. The Director does not have the authority to waive this statutory requirement. As a result, the Director denied the taxpayer's petition for waiver.

Date: 2022-05-24

Petitioner, a law firm, requests and pays for medical records from medical providers for use in its clients’ cases which could be supplied through a third-party copy service. Petitioner requested a declaratory order seeking an exemption from sales tax on the fees charged for the release of these records from the third-party copy service under Iowa Code sections 423.3(96) and 622.10(6). The Director refused to issue the declaratory order because the petition lacked sufficient factual circumstances in order for the Director to adequately respond and the questions presented in the petition would be more properly resolved in a different type of proceeding.

Date: 2022-05-19

Iowa Code section 423.4(11), implemented by Iowa Administrative Code rule 701—235.3, allows a qualifying automobile racetrack facility to apply and obtain a rebate of the sales tax imposed and collected by retailers permitted to make sales within the facility for the facility's use in reinvestment and improvement projects. To obtain the rebate, a facility must timely file the requisite information and documentation with the department. The Petitioner, a qualified racetrack facility, requested a waiver of Iowa Administrative Code rules 701—235.3(4) and 235.3(5) in order to obtain the rebate from untimely filed and incomplete forms. The Director determined that rules 235.3(4) and 235.3(5) are not discretionary and, therefore, are not within his delegated authority to waive. As a result, the Director denied the facility's petition for waiver.

Date: 2022-05-02