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Multilevel Marketer Agreements

General Information

Multilevel marketer companies may enter into a written contract with the Department to collect and remit state and local option sales taxes on sales of tangible personal property to independent distributors for resale and remit the taxes directly to the Department.

To be eligible for the multilevel marketer's program, the company must meet certain eligibility requirements and agree to certain terms in the multilevel marketer agreement as set forth in 701-subrules 4.1(3) and 4.1(4).

All written contacts with the Department should be sent to:

Nonfiler Unit, Compliance Division
Iowa Department of Revenue
PO Box 10456
Des Moines, Iowa 50306-0456

The following definitions of terms are applicable to this program:

"Independent distributor" means a seller who purchases products for resale to an Iowa consumer based on a price suggested by a multilevel marketer.

"Multilevel marketer" means a wholesaler that sells tangible personal property for resale via a network of independent distributors who then sell the property to the ultimate consumers located in Iowa at a retail price suggested by the multilevel marketer.

"Sales tax" or "sales taxes" for the purpose of this rule means Iowa state sales tax, including local option sales and service taxes, and state use tax. To determine if local option sales and service taxes are due, see 701-107.2(422B), 701-107.3(422B), and 701-108.3(422E). 

Iowa Code and rule references can be found at this website:


For More Information

Email Iowa Taxpayer Services or

Call 1-800-367-3388 or 515-281-3114, or

Send a written request to:

Program Manager, Nonfiler Unit
Compliance Division
Iowa Department of Revenue
PO Box 10456
Des Moines, IA 50306 - 0456