The Department is excited to announce our new website, revenue.iowa.gov, is launching in one week, on July 9!
The 2021 General Assembly made several revisions to Iowa Code section 321.105A, the fee for new registration for motor vehicles. These changes were recommended by the Department to clarify confusing issues about how the fee is imposed and how certain exemptions are applied. See guidance for further explanation of these changes.
At the time of a taxable purchase, Iowa state sales/use tax is collected by the retailer from the buyer. Unlike tangible personal property, which is subject to sales/use tax unless specifically exempted by Iowa law, services are subject to sales/use tax only when specified by Iowa law. Iowa sales tax is due when the first use of a taxable service occurs, or potentially could occur. The Iowa use tax complements the Iowa state sales tax. Generally, when a taxable service is purchased or obtained outside of Iowa for use in Iowa, it is subject to Iowa use tax.
In response to 2019 (HF779) and 2020 legislation (HF2461), the Department updated its rules and forms related to powers of attorney and disclosure. ARC 5532C was published on March 24, 2021. The rules were effective April 28, 2021, and the new forms, and additional information about these procedures, are now available at Confidentiality, Disclosure, and Authorized Representation on the Department’s website.
Governor Reynolds signed a proclamation on April 30, 2021, that provides an extension to owners of First-Time Homebuyer Savings Accounts to make required account and beneficiary designations. The proclamation also extends the time that owners of Iowa Educational Savings (529) Plans may make contributions to their accounts that may be considered made in tax year 2020. The proclamation extends both deadlines to May 30, 2021.