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 current year. All orders from previous years can be found in the Iowa Tax Research Library

Administrative Orders

Petitioner, a yoga studio franchisee, operates two yoga studios in Iowa and provides classes for its patrons. The classes Petitioner offers are led by instructors who are certified to teach yoga and who have at least 200 hours of training in yoga instruction. Petitioner’s customers are not permitted to use the facilities in a non-class setting or without instruction or supervision yoga instructor. Petitioner inquired whether the classes it offers its patrons are subject to Iowa’s sales tax. The Director found that, while yoga is “recreation” for purposes of Iowa Code section 423.2(6)(v), Petitioner’s service constituted nontaxable “instruction in recreational activities” under Iowa Administrative Code rule 701—26.24 because it meets the criteria laid out in that rule—namely, that the charges for instruction are separately contracted for; the instruction occurs under supervision and in a class setting; and the instructors, who are specially trained, impart the learner with the requisite level of knowledge or skill in the recreational activity being taught.

Date: 2020-08-31

Petitioner, a corporation that rents hotel rooms for its employees for a period of more than 31 consecutive days, inquired about whether its lodging rental would be exempt from the hotel/motel tax pursuant to Iowa Code section 423A.5(1) and Iowa Administrative Code rule 701-103.3(2). Petitioner also requested the Director to approve of its payment methodology. The Director found that Petitioner was exempt from the hotel/motel tax because it rented lodging for a period of more than 31 consecutive days. The Director refused to answer the inquiry about Petitioner's payment methodology because there was a lack of facts presented in the Petition, the question would more properly be resolved in a different type of proceeding, and answering would determine the legal rights and duties of other persons who have not joined in the Petition.

Date: 2020-06-16

Iowa Administrative Code rules 701-71.1(3)-(4) define classification of agricultural and residential real estate for property tax assessment purposes. The Iowa State Association of Assessors requests that the Iowa Department of Revenue develop specific requirements and guidelines for assessors to use to determine the classification of properties containing both a residential use and an agricultural use. Based on the foregoing reasoning and applicable provisions of the law, the Petition for Rule Making was denied.

Date: 2020-06-16

Petitioner, a nonprofit corporation, provides health care services through a hospital and three rural health clinics. Petitioner previously submitted refund claims which were partially denied, but not appealed. Those denials related to purchases made for the clinics. Petitioner inquired into the classification of the clinics and whether the clinics are excluded from the definition of “hospital” under the Iowa Code and Iowa Administrative Code. Petitioner also inquired about the applicability of a sales tax exemption under Iowa Code 423.3(27) for non-profit hospitals relating to purchases made for the clinics. The Director refused to issue a declaratory judgment because the petition lacked sufficient factual circumstances in order for the Director to respond and the questions presented would more properly be resolved in a different type of proceeding. Additionally, parts of the petition relied on information about the prior refund denials.

Date: 2020-04-27

Petitioner, an owner and operator of a data center business, is considering setting up a wholly owned subsidiary to purchase and sell needed equipment to the data center business. Petitioner inquired about the tax applicability of its wholly owned subsidiary’s sales to its data center business under Iowa Administrative Code rule 701—213.24(423). The Director refused to issue a declaratory judgement because 1) rulemaking is a more proper proceeding to resolve the issues presented in the petition and 2) the petition does not substantially comply with the required form.

Date: 2020-04-24

Conditional penalty relief for taxpayers required to make estimated payments of individual, corporate, or franchise tax for a tax year beginning during the 2020 calendar year which have an installment due date on or after April 30, 2020, and before July 31, 2020.

Date: 2020-04-09

Extension authorizing Boards of Review in each city and county to remain in session until June 15, 2020 and extending the time for filing a protest to include the period from May 25, 2020 to June 5, 2020.

Date: 2020-04-02

Extension for taxpayers through July 31, 2020 of individual, corporate, franchise, moneys and credits, estate and trust, partnership and S corporation returns, and through April 10, 2020 of certain withholding returns.

Date: 2020-03-19

Petitioner, an owner and operator of electric vehicle charging stations, inquired about the tax applicability of its billing methods (by time and by Kilowatt per hour) under Iowa Code chapter 423. The Director refused to issue a declaratory judgment because the petition failed to provide the statutes and rules on which the Petitioner's inquires were based, the petition failed to state answers to Petitioner's question and to state a summary of reasons in support of those answers, and lacked sufficient factual circumstances in order for the Director to adequately respond to the inquiries.

Date: 2020-02-17

Declaratory Orders

Any person may petition the Department for a declaratory order. For more detailed information about declaratory orders or how to file a petition, see 17A.9 Declaratory Orders and 701-7.24 (17A) Declaratory order-in general.

To view declaratory orders, cases, or rulings published by the Department, visit the Iowa Tax Research Library.