The Department is excited to announce our new website, revenue.iowa.gov, is launching in one week, on July 9!
Iowa Fuel Tax Rate Change Effective July 1, 2024
HF2128 of the 89th General Assembly implemented changes to Iowa Code 452A.3 regarding the taxation of fuel classified as B-11 or Higher and fuel classified as B-20 or Higher to take effect July 1, 2024. The biodiesel B-11 or Higher fuel tax classification is being increased to a fuel tax classification of B-20 or Higher for purposes of excise tax calculations and biodiesel distribution percentage calculations.
The following information is based on the 2023 Retailers Fuel Gallons Annual Report for the determination period beginning January 1, 2023, and ending December 31, 2023:
IDR Announces Livestock Capital Gains Deduction for Tax Year 2023
On May 15, 2024, Governor Reynolds signed into law House File 2649 which excludes capital gain from the sale of certain livestock from the computation of net income for individual income tax purposes.
This legislation applies retroactively to tax years beginning on or after January 1, 2023.
IDR Releases Updated Tax Guidance: Disaster Emergency Tax Penalty Relief
Governor Kim Reynolds authorized a Proclamation of Disaster Emergency in response to the recent floods. The Iowa Department of Revenue has updated tax guidance on how people affected by the floods, including those who may have sales tax returns due on July 1, can seek tax penalty relief:
IDR Releases Tax Guidance: Employee Income Withholding Instructions
The Iowa Department of Revenue is issuing updated instructions for employee withholding for wages paid in calendar year 2024. Previous guidance instructed employers with employees who do not file an updated W-4 using the 2024 IA W-4 to use $40 as the total allowance amount and $0 as the additional withholding amount when calculating these employees’ Iowa withholding amounts.
CASTERFRAME PC (DO) (2024)
Petitioner, a CPA firm, requested a declaratory order to determine whether installment payments from sales that occurred prior to January 1, 2023 qualify for the capital gain deduction for sales of certain stock under Iowa Code section 422.7(42). The Director refused to issue a Declaratory Order because the issue presented is better suited for a rulemaking due to the broad applicability of the answer and is trying to establish the effect of prior conduct instead of planning future conduct.
DAKOTA AG RESEARCH LLC (DO) (2024)
Petitioner, a South Dakota research company, requested a determination on whether two of its services, corn breeding and yield trial testing, are services subject to sales tax. The Petitioner further inquired on how to source its services for Iowa sales tax purposes. The Director determined that Petitioner’s service of yield trial testing is a service subject to sales tax pursuant to Iowa Code section 423.2(6)(bc) while its service of corn breeding is not a service subject to sales tax.
IDR Helps You Prepare for Tax Time
With tax filing season upon us, the Iowa Department of Revenue is reminding Iowans of the many resources available that can assist taxpayers with filing their tax return. The Department began processing individual income returns at the same time as the IRS on January 29. This is because Iowa taxpayers are required to provide their federal return with their Iowa return. Iowa income tax returns are due on April 30.