Proposed Administrative Rules Available for Public Comment
The Department of Revenue has submitted three proposed rules to the Iowa Legislature. Each is available for public comment through January 22, 2019, see individual notices below for details.
- Sourcing of Taxable Services, Tangible Property, and Digital Products Amendment
The Department proposes to amend the chapter on sourcing of taxable services to remove language that is outdated, unnecessary, or duplicative of Iowa Code provisions. This proposed rule making incorporates the sourcing of tangible personal property and specified digital products pursuant to changes to the Iowa Code made by 2018 Iowa Acts, Senate File 2417.
- Delivery Sales of Alternative Nicotine or Vapor Products
The Department proposes a rule to implement 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.
- Local Option Sales and Services Tax Amendment
The Department proposes to remove rules that repeat the language of the statute, to update calculations, and to incorporate changes necessary as a result of SF 2417.
The Department of Revenue previously submitted the following proposed rules to the Iowa Legislature. The follow rules have been adopted and filed, effective February 6, 2019.
- Manufacturing & Processing
This rule 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.
- Personal Transportation Service
This rule 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.
- Water Service Excise Tax
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.
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