The Department of Revenue previously submitted the following proposed rules to the Iowa Legislature. The following rules have been adopted and filed.
Adopted and Filed Rules
Adopted and Filed Rules
This rulemaking updates the Department’s rules that dictate the order in which Iowa income and franchise tax credits must be deducted by Iowa taxpayers. The amendments strike from the deduction list recently repealed tax credits, add newly enacted tax credits, and update certain tax credits.
This rulemaking clarifies procedures for appeals of the Director of Revenue’s rejection of an assessor appointment or reappointment under Iowa Code section 441.6(3). This rulemaking alters the existing appeal procedures to clarify that the Director of Revenue is the presiding officer in contested cases under rule 701—7.37(441). Additionally, this rulemaking clarifies cross-references to the Department’s rule regarding contested cases before the Department.
This rulemaking relates to the Iowa out-of-state tax credit against regular Iowa income tax for income tax paid to other jurisdictions on a resident individual’s or fiduciary’s income that is also taxed by Iowa. The primary purpose of these amendments is to implement 2020 Iowa Acts, House File 2641, division XVII.
The amendments accomplish a variety of objectives. Many are related to the implementation of the Department’s modernized tax management system and e-services portal, GovConnectIowa. Other amendments are to clarify various aspects of the appeals process. The Department will renumber several rules to improve the order of the chapter and to create rules on important topics formerly housed in subrules.
In its 2020 Legislative Session, the Legislature amended Iowa Code sections 422.20 and 422.72 to explicitly allow those filing protests with the Department to move for certain information to be redacted prior to release in response to a public records request. These amendments outline the procedure a taxpayer will follow to file the motion and the requirements thereof.
The Department has several chapters of rules that implement a variety of sales tax administrative procedures set forth in Iowa Code chapter 423. This rule making updates those chapters to make a variety of non substantive changes and also amends rules in other chapters to update affected cross-references.
During the 2021 Legislative Session, the Department requested that the Legislature modify Iowa Code section 421.27, which sets forth penalties and penalty waivers related to the filing of tax returns and payment of tax. The changes were enacted and signed into law as 2021 Iowa Acts, Senate File 608, effective July 1, 2021. The Department has amended its rules implementing Iowa Code section 421.27 to reflect the changes made by Senate File 608.
The Department revised Iowa Code section 321.105A in 2021 Iowa Acts, Senate File 366, which was enacted by the Legislature, signed into law by Governor Reynolds, and effective July 1, 2021. This new Chapter 34 is significantly updated from the prior chapter and includes many examples. Once these rules are in effect, all parties should discontinue the use of the UT-510 manual as guidance and refer to these rules instead.
This rule making is intended to implement a hearing procedure when the Director of Revenue intends to remove a member of the local board of review under Iowa Code section 441.32(2) as amended by 2021 Iowa Acts, House File 871, section 29, and the board member requests a hearing. This rule making describes the process for requesting a hearing, the governing procedures of the hearing, the contents of the request for hearing, and the burden of proof at such a hearing.
This rule making is primarily intended to implement statutory changes to the tax credit rate and the total school tuition organization tax credits that may be authorized each calendar year. 2021 Iowa Acts, House File 847, increases the tax credit rate to 75 percent from 65 percent for tax years beginning on or after January 1, 2021, and increases the amount of the credit available to taxpayers in 2022 and subsequent years.