Administrative Rules - Adopted & Filed
The Department previously submitted the following proposed rules to the Iowa Legislature. The following rules have been adopted and filed, effective April 28, 2021.
- Sales and Use Tax on Services (Barbering/Cosmetology/>Esthetics)
In 2020, the Legislature enacted a change to the definition of “barbershop” to allow for barber shops to be “readily movable” and lists “barber and beauty” among the services subject to sales tax in Iowa. This rule making amends an existing rule by removing explanation of activities included in the phrase “barber and beauty,” and instead refer to the definitions of “barbering,” “cosmetology,” and “esthetics” from the Iowa Code chapters that govern the practices of those professions.
- Sales Involving Government Entities and Instrumentalities
Through 2020 Iowa Acts, House File 2641, the Legislature added language to Iowa Code section 423.3(31), an exemption from sales tax for purchases by certain government entities and instrumentalities of the government, to clarify that purchases by tribal governments are exempt. This rule making amends an existing rule to implement that change and make other minor updates. No changes from the Notice of Intended Action on this rule making were made.
- Powers of Attorney; Tax Information Disclosure Designation
This rule making amends existing rules to reflect new laws, clarify areas of confusion, and modify current procedures to improve administration. Rule 701—7.6 defines the powers that a representative under a power of attorney may utilize, the method a taxpayer may use to file a power of attorney, who may authorize a power of attorney on behalf of a taxpayer, and the process by which a power of attorney may be revoked. Additionally, this rule making outlines those individuals who have authority to act on behalf of a taxpayer, other than via the Department’s power of attorney form, as well as the method and documentation required to be filed to show authority. Rule 701—5.7 defines the powers that a designee authorized by a tax information disclosure designation form may utilize, the method a taxpayer may use to file a tax information disclosure designation, who may authorize a tax information disclosure designation on behalf of a taxpayer, and the process by which a tax information disclosure designation may be revoked. Rules 701—5.11 and 7.34, which also held power of attorney and disclosure rules, have been consolidated into rules 701—5.7 and 701—7.6, respectively.
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