Information regarding Iowa vehicle purchase and lease, including forms

This is basic information on the Iowa inheritance tax and is not information regarding probate. This information is not a substitute for legal advice. Please contact an attorney for legal advice or if you have questions concerning probate or any other estate question.

Property taxes are not determined by a single individual who assesses your property and sends you a bill. The final tax rate is the result of budgets established to provide services, an assessor’s assessment, a county auditor’s calculations, and laws administered by the Department. Because property assessment involves a series of events that takes 18 months from start to finish, this information will not be able to answer all your questions. It should, however, be able to explain the basic principles and events involved in calculating the property tax rate.

In May 2019, the Iowa legislature enacted House File 590, a bill providing requirements and penalties for tax return preparers. Beginning January 1, 2020, individuals preparing certain tax returns or claims for refund under Iowa Code chapter 422 may be classified as tax return preparers. Tax return preparers will be subject to continuing education requirements and penalties for failing to provide their preparer tax identification number (PTIN) on returns they prepare.

Many Iowa retailers have established or strengthened their online presence to make sales to their customers or perhaps reach new ones. The Department is providing this guidance to make sure these businesses are aware of their tax compliance obligations for sales across Iowa and into other states. Topics included within this guidance: Law Changes, Local Option Sales Tax, Marketplace Sales, Remote Sales, Streamlined Sales Tax.

In 2018, the Iowa legislature enacted Senate File 2417, a state tax reform bill that includes extensive changes to the state’s tax structure.

On May 30, Iowa Governor Kim Reynolds signed Senate File 2417, an extensive state tax reform bill to improve the tax structure in Iowa. The 2018 Iowa Tax Reform Bill recognizes that the method of delivering photography and retouching services has changed and that the service may or may not result in a physical product. This law modernizes the language of the code so that photography and retouching services are taxed consistently regardless of whether the final product is physical or electronic.

During the 2019 Legislative Session, the General Assembly added a new exemption from sales and use tax under House File 779 for grain bins and grain bin materials, effective July 1, 2019. The Department has adopted administrative rules to implement the new exemption. The rules went into effect August 19, 2020. This guidance summarizes the exemption and new administrative rules and addresses some common questions and issues taxpayers may have about the exemption.

In 2018, the Iowa legislature enacted Senate File 2417, a state tax reform bill that includes extensive changes to the state’s tax structure. Beginning January 1, 2019, digital goods or service may be subject to sales tax, applicable local option sales tax, and use tax, depending on various factors. This guidance explains what is subject to tax including computer software, specified digital products including webinars, the sale of storage services, and information services. Additionally, this guidance provides further information regarding exemptions to taxation.

To facilitate the review of relevant claims filed with the Department and to expedite the correct determination of the tax-exempt status of temporary labor service transactions, the Department has produced this guidance to notify taxpayers and tax practitioners of information that should be included with every refund claim form Iowa 843 that contains requests for refunds of tax paid on temporary labor services.