Administrative Rules

Adopted and Filed Rules

Tax Type:
Property and Local Government Taxes

The purpose of this rulemaking is to readopt Chapter 270. The Department revised the chapter to remove portions of the rules that the Department determined are obsolete or unnecessary or are duplicative of statutory language. The chapter describes the Department’s interpretation of the underlying statute to help the public understand local option taxes. These rules reduce uncertainty about when tax applies.

Effective Date
Tax Type:
Income Taxes

This rulemaking is intended to implement the statutory change to the retirement income exclusion from a partial to a full exclusion for qualifying taxpayers receiving distributions from qualifying plans. This rulemaking identifies certain plans that do and do not qualify for the exclusion as well as defining how survivors with an insurable interest may qualify for the exclusion.

Effective Date
Tax Type:
General Department Administration

This rulemaking implements division VI of 2023 Iowa Acts, Senate File 565. Division VI amends several Iowa Code sections related to settlement authority, including the authority to fully abate liabilities under certain circumstances. The Act also establishes new procedures related to estimated assessments. The statutory changes related to settlement authority in Iowa Code section 421.5 include a requirement that the Department adopt rules to administer the section. A new chapter is adopted to cover the various types of settlements that the Department may enter into.

Effective Date
Tax Type:
Other Taxes

This rulemaking, pursuant to Part IV of Executive Order 10, implements, in part, 2022 Iowa Acts, House File 2317, and provides guidance as to how and when an employee-owner may make an election to exclude capital gain from the sale of qualifying capital stock in a qualifying corporation. The legislation allowed employee-owners of a qualified corporation to exclude the capital gain from the sale of qualifying capital stock.

Effective Date
Tax Type:
General Department Administration

This rulemaking implements 2020 Iowa Acts, House File 2565, which sets forth the statutory authority to transition the setoff program from the Department of Administrative Services to the Iowa Department of Revenue. The rules describe the priority of payment when multiple agencies within the same priority group make a claim to the same setoff payment, describe the frequency of certifications of debt by public agencies submitting debt to the program, and establish a minimum debt submission amount by rule.

Effective Date
Tax Type:
Other Taxes

This rulemaking implements deductions for farm tenancy agreement income and farm capital gains enacted by 2022 Iowa Acts, House File 2317, divisions II and III. These deductions are effective for tax years beginning on or after January 1, 2023. This rulemaking rescinds the rule for capital gains according to the law prior to the legislation.

Effective Date
Tax Type:
Sales, Use and Excise Taxes

This rulemaking implements the excise tax on electric fuel, enacted by the Iowa Legislature in 2019 Iowa Acts, House File 767, that will become effective July 1, 2023. These rules provide guidance as to what entities need to obtain a license to sell or dispense electric fuel either as a user, dealer, or both. Several changes were made to the Notice of Intended Action for these rules, ARC 6921C. Read more about those changes in the rule filing.

Effective Date
Tax Type:
Sales, Use and Excise Taxes

Pursuant to Part IV of Executive Order 10, the Department proposed this Notice of Intended Action in light of the concerns received after the official public comment period for ARC 6577C and the effective date of the new rule implementing the taxable service of commercial recreation. The Department is rescinding rule 701—216.3(423) and replacing it with the text previously found in rule 701—26.24(422), with minor updates for consistency with other administrative rules. No changes were made from the Notice of Intended Action for this rulemaking.

Effective Date
Tax Type:
General Department Administration, Income Taxes

Paragraph 8.5(2)“b” currently lists a requirement for electronic return originators to use a process for electronic signatures that is much more stringent than the current practice of the Department. The amendment changes the language of the rule to align with current practice.

Effective Date
Tax Type:
General Department Administration, Other Taxes

This rulemaking is intended to provide updates and clarifications for the Department’s automatic extension of time for filing fiduciary income tax returns. The current rule includes detailed, outdated information relevant to tax years 1986 through 1991. The automatic filing extension applicable to current tax years is incorporated by reference to the automatic extension for individual income tax. This rulemaking removes the outdated information and provides the relevant extension language that was previously incorporated by reference.

Effective Date