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
As a result of 2019 Iowa Acts, Senate File 220, the Department amends the existing charts in rules 701-40.65(422), 701-53.23(422), and 701-59.24(422) for individual income tax, corporate income tax, and franchise tax to reflect the higher limitations now applicable to corporations and financial institutions for 2018. The amendments will update references to the lower limits in the rules and examples to reflect the higher limits.
The Department proposed to remove photography and retouching services from the category of services treated as tangible personal property, pursuant to 2018 Iowa Acts, Senate File 2417, section 169, by amending rule 701-16.51(422,423). This rule adopts rule 701-26.17(423), whose language is substantially similar to that in the current rule but includes photography and retouching services, which were added to the list of taxable enumerated services by 2018 Iowa Acts, Senate File 2417, section 170.
This amendment removes rules that repeat the language of the statute, to update calculations, and to incorporate changes necessary as a result of SF 2417.
This rule making implements a division of 2017 Iowa Acts, Senate File 516, which imposed sales and use tax on all delivery sales of alternative nicotine products or vapor products within Iowa and required sellers of those products into the state to obtain a permit from the Department.
This rule making amends 701-238.4(418) regarding the use of moneys from a flood mitigation fund. During the 2018 Legislative Session, the Legislature added language to specify that a governmental entity may use moneys from an account for reimbursements for funds advanced internally or to help make payments on bonds incurred to pay for projects approved by the Flood Mitigation Board before, on, or after July 1, 2018.
This rule making amends several rules, implementing 2017 Iowa Acts, Senate File 500 which changed the terms “Enhanced 911” and “E911” to “911” to reflect the merging of E911 and Next Generation 911 services. The Department updated references to those terms.
The Department amended a rule relating to inheritance tax to reflect a statutory change. Prior to July 1, 2018, estates containing personal property, real property, or a mix of both were required to provide a bond security to secure payment of deferred inheritance tax. In 2018, the Legislature amended Iowa Code section 450.48 to allow for other options for securing deferred payment in lieu of a bond.
This rule making implements changes to the taxability of personal transportation services made by SF 2417 and defines personal transportation service, addresses sourcing, and describes applicable exemptions. Several changes were made to the proposed rules published in November.
Due to 2018 SF 512, the Department adopted a new Chapter 97 to the Iowa Administrative Code, “State-Imposed Water Service Excise Tax.” No changes were made to the proposed rules, as amended and published in October.
This rule making implements changes to Iowa Code section 423.3(47) which provides a sales tax exemption for the sales price from the sale of certain items that are “directly and primarily used in processing by a manufacturer.” New definitions were enacted in SF 2417 and became effective on May 30, 2018. Several changes were made to the proposed rules published in November.