The Department is excited to announce our new website, revenue.iowa.gov, is launching in one week, on July 9!
This tax guidance describes what retirement income is eligible for the exclusion, who is eligible for the exclusion, and the withholding requirements for Iowa purposes on retirement income. Additionally, on February 20, 2023, Governor Kim Reynolds signed Senate File 181. The guidance was updated to address withholding requirements for distributions of retirement income for tax years beginning on or after January 1, 2023.
Des Moines, Iowa – The Iowa Department of Revenue announces individual income tax brackets and individual income tax standard deduction amounts for the 2023 tax year (applicable for taxes due in 2024) and the 2023 interest rate, which the agency charges for overdue payments.
Starting January 1, 2023, the interest rate for taxpayers with overdue payments will be:
The Iowa District Court for Polk County affirmed the Department’s denial of sales tax refunds filed by the Iowa State Association of Counties. The taxpayer was not an exempt government instrumentality under Iowa Code section 423.3(31). Government did not sufficiently control the detailed performance of the taxpayer. And other factors did not demonstrate that the taxpayer was an exempt government instrumentality. ISAC did not appeal the district court’s ruling.
The Taxpayer appealed the Department's denial of a renewable energy tax credit based on a ten-year limitation period pursuant to Iowa Code section 476C.5 and Iowa Administrative Code rule 701—42.28. An Administrative Law Judge (ALJ) granted in part and denied in part both the Taxpayer's and Department's motions for summary judgment, finding the Department's rule was inconsistent with the statute and the statute controlled, enabling the taxpayer to claim the tax credit for calendar years 2018 and 2019 but not for calendar year 2020.
Petitioner, a self-storage facility, requested a declaratory order to determine the taxability of: (1) the rental of a self-storage unit, (2) certain other property and services related to the rental of such a unit, (3) rentals of airplane hangars and RV storage, and (4) storage units provided to tenants by apartment complexes. The Petition also inquired as to the validity of certain portions of Iowa Administrative Code rule 701—26.78.
Petitioner, a temporary employment agency, inquired whether its temporary employees' services fall within the enumerated, and therefore taxable, service of "machine operator." Petitioner asked whether its employees would be considered machine operators when their service consisted of the use of a computer, including extensive use, but which is not the main function of their job.