Administrative Orders

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.

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.

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.

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.

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.