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

2019 Administrative Orders

Taxpayer, David Schultz, challenged the Department's denial of his sales tax refund claim as filed after the expiration of the applicable statute of limitations. Taxpayer requested the sales tax refund under the Housing Enterprise Zone Program administered by the Iowa Economic Development Authority (formerly the Iowa Department of Economic Development). Iowa Code section 15.331A(2) requires that Taxpayer file the refund claim within one year of the project completion date. Because the evidence demonstrated that the refund claim was filed after this one-year limitations period, the administrative law judge affirmed the Department's determination. Neither party appealed the proposed decision, and it became the Department’s final order pursuant to Iowa Administrative Code rule 701-7.17(8)(d).

Date: 2020-01-14

The Administrative Law Judge found that Petitioners' use of "pre-tax dollars" (money deducted from Petitioners' gross salary before income tax was paid) to pay their health insurance premiums meant that Petitioners could not deduct the health insurance premium payments on their Iowa individual income tax filings. Neither party appealed the proposed decision, and it became the Department’s final order pursuant to Iowa Administrative Code rule 701-7.17(8)(d).

Date: 2020-01-14

Petitioner, an Iowa nonprofit entity, entered an agreement with locality to build an inclusive baseball field and associated facilities. Petitioner inquired whether the tangible personal property purchased to construct the field and facilities were exempted from sales tax under Iowa Code section 423.3(19). The Director found that the tangible personal property was not exempt from sales tax because it was purchased by the general contractor and not the Petitioner.

Date: 2019-12-20
Petitioner, a food service provider operating in Iowa, contracts with employer-clients to operate the employer-clients' cafeteria facilities. Petitioner prepares and sells meals and beverages to employer-clients' employees and provides additional services related to the operation of employer-clients' cafeterias. Petitioner is entitled, pursuant to its contracts with employer-clients, to a monthly subsidy payment under certain circumstances. Petitioner inquired whether the subsidy payment is subject to Iowa's sales or use taxes. The Director found that the subsidy payment is subject to Iowa sales tax because it was, essentially, a payment for taxable prepared food under Iowa Code section 423.3(57)(f) and Iowa Administrative Code rule 701-231.5. The Director also found that, because the subsidy payment was subject to Iowa's sales tax and had been properly charged, collected, and remitted to the Department, the subsidy payment was not subject to Iowa's use tax under Iowa Code section 423.6(1).
Date: 2019-12-20

Petitioner, an Iowa nonprofit entity that commissions art for public display, inquired whether the purchase or commission of certain artwork, sculptures, or other materials used for the placement of art in public places were exempted from sales tax under Iowa Code section 423.3, subsections (17), (19), (21), (22), or (37). The Director found that the items were not exempt under subsections (17), (19), (21), or (22). The Director declined to answer the petition as it pertained to subsection (37) on the basis that the inquiry involved underlying questions too fact intensive for a Declaratory Order.

Date: 2019-12-20

Petitioner, a franchisee of an indoor stationary fitness cycling franchise, inquired whether the membership fees to the cycling studio were subject to sales and tax. The Director found that the membership fees were subject to sales tax as commercial recreation under Iowa Code section 423.2(6)(v) and rule 701-26.24.

Date: 2019-10-30

The Director affirmed the Administrative Law Judge’s decision that Petitioner’s Lia Sophia activities were not performed with the intent to make a profit and that the Department’s 2013 income tax assessment is affirmed. Further, the Director affirmed the Department’s 2012 income tax assessment, with adjustments to Petitioner’s itemized deductions.

Date: 2019-10-28

The Director adopted the Administrative Law Judge’s decision that “separate metering” was meant to mean separately metered by a utility company and that the Department had correctly denied Petitioner’s application for a second solar energy tax credit.

Date: 2019-10-28

The Administrative Law Judge affirmed the Department's denial of the taxpayer's request for refund on the grounds that the request was untimely.

Note: The appeal period has expired, the Administrative Law Judge’s proposed decision is adopted as the final decision by the Department.

Date: 2019-08-26

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.