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Based on the recently updated Retailers Motor Fuel Gallons Annual Report, the motor fuel tax rate for B-11 or Higher previously communicated on June 12, 2023 has changed. – Prior to July 1, 2020, the Iowa Department of Revenue used gallon totals from the Iowa Fuel Tax Monthly Report to determine tax rates for motor fuel and special fuel. Beginning July 1, 2020, the Department started using gallon totals from the Iowa Retailers Fuel Gallons Annual Report, resulting in tax rate changes to select fuel types.

The Iowa Department of Revenue is reminding owners of non-residential electric vehicle chargers that new tax changes take effect July 1, 2023.

On May 11, 2023 Governor Reynolds signed House File 352 which creates a voluntary election for a partnership or S corporation to be subject to Iowa income tax at the entity level. The legislation applies retroactively to tax years beginning on or after January 1, 2022. The Department is in the process of reviewing this legislation and will release guidance soon.

On January 10, 2023, Governor Kim Reynolds signed Executive Order 10, putting a moratorium on certain administrative rulemaking and instituting a comprehensive review of all existing administrative rules. The Department has updated its website to include this rulemaking information.

On February 20, 2023, Governor Kim Reynolds signed Senate File 181. The Iowa Department of Revenue has released updated tax guidance addressing withholding requirements for distributions of retirement income for tax years beginning on or after January 1, 2023.

Governor Reynolds signed Senate File 181 into law. Division I of the bill addresses the assessment limitation (or rollback) calculation for residential property. The Department has issued an Order certifying the new assessment limitation. The bill also gives local governments additional time to certify their budgets.

The Iowa Department of Revenue has released updated tax guidance addressing the electronic filing requirement for businesses, trusts, and estates. Order 2023-01 offers limited relief from the requirement that certain business entities file their returns in an electronic format.

The Iowa Department of Revenue has released new tax guidance addressing the electronic filing requirement for businesses, trusts, and estates. Beginning in 2023, certain business entities are required to file their 2022 and later Iowa income tax returns electronically.