Iowa state tax program

The Department has discretion to determine who is eligible for participation in the voluntary disclosure program. In making the determination, the Department may consider the following factors:. You or your representative may initially contact the Department on an anonymous basis. Anonymity of the taxpayer can be maintained until the voluntary disclosure agreement is executed by the taxpayer and the Department.

The voluntary disclosure program may be used by the Department and the taxpayer to report previous periods of Iowa-source income and to settle outstanding tax, penalty, and interest liabilities, but it must also ensure future tax compliance by the taxpayer. Before You Apply. Federal Tax Credit. How to Apply. Property Tax Exemption. Section Review Process. Before You Submit. How to Submit. Certified Local Governments.

Maintain Your Status. Certified Local Government Grant Program. Preservation Planning. Statewide Preservation Planning. Local Preservation Planning. Education and Outreach. Preserve Iowa Summit. Case Studies and Model Projects. Adult Group Visits. Educator Resources. Goldie's History Kits. National History Day. Judging Criteria. District Contests. State Contest. National Contest. Annals of Iowa. Historical Resource Development Program.

Research Grants for Authors. Goldie's Kids Club. History Alive. Votes for Women Digital Education Package. Workshops and Day Camps. Adult Programs.

Programs for Organizations. History Awards. Award Recipients. Or by appointment. This is intended as a general guide, and is not an all-inclusive discussion of Iowa sales and use tax law.

Retailers that sell taxable tangible personal property, services, and products must obtain a sales tax permit. Learn more about permit requirements or if you need a tax permit. If a person makes retail sales from more than one location, each location from which taxable sales of tangible personal property, specified digital products, or services will occur shall be required to hold a permit. To obtain a permit, apply through the Department's Business Registration System.

The Department does not issue temporary tax permits. A permanent tax permit allows you to conduct taxable sales or perform taxable services in Iowa at any time during the year. When you attend a temporary event, such as a craft show, you only need to provide the event sponsor with your name and address, along with your permanent tax permit number.

Sponsors of flea markets, craft shows, antique shows, and other temporary events may be liable for the sales tax, penalty, and interest of the retailers selling at the event. Not sure you need a permit? Contact Taxpayer Services by email or call or When a taxable service, tangible personal property, or specified digital product is used in Iowa, but no Iowa sales tax was collected on the sale of the product, Iowa use tax is usually due.

Remote sellers and marketplace facilitators whose Iowa sales volume is below the amount required to collect sales tax may use a retailer's use tax permit. Businesses located outside of Iowa that have representatives or employees in Iowa to maintain, establish, or further their market share within the state have nexus.

Delivery into Iowa by company trucks also establishes nexus. Some qualified purchasers, users, and consumers of tangible personal property or taxable services may remit the tax directly to the Department rather than to their suppliers. Learn more about Direct Pay Permits. Iowa is a member of the Streamlined Sales Tax Governing Board SSTGB , a multi-state effort to encourage businesses in all states to collect and remit sales tax in every state in which they make taxable sales.

If a corporation, association, or partnership fails to pay sales and use taxes, the officers or partners are personally liable for the tax, interest, and penalty.

A person selling a business must file final tax returns and pay all taxes due. However, the new owner should withhold a sufficient amount of the purchase price to pay any unpaid tax, interest, and penalty in case the seller fails to pay the final tax due.

If the new owner intentionally fails to do this, he or she is personally liable for the tax. In addition to the state tax, most local jurisdictions impose the local option sales tax. Within a county, some cities may have the local option tax, some may not. Also, the unincorporated rural area of a county may or may not have the tax.

A jurisdiction may enact the tax on January 1 or July 1. For more information, including lists of jurisdictions with the local option tax, see Iowa Local Option Tax Information. Certain cities and counties in Iowa have adopted a local option hotel and motel tax on the renting of sleeping rooms in any hotel, motel, inn, public lodging house, rooming house, tourist court, mobile home, bed and breakfast, or in any place where sleeping accommodations are furnished to transient guests for rent.

Jurisdictions and rates are updated January 1 and July 1 of each year. No permit other than an Iowa sales tax permit is required to collect and report these taxes.

The lease price includes the number of months of the lease multiplied by the monthly lease payments, plus certain adjustments. This is in addition to the state sales tax and any applicable local option tax.

The tax applies to vehicles designed to carry nine or fewer passengers. It does not apply to delivery trucks designed to carry cargo or to motorcycles or motorized bicycles.

The automobile rental tax is reported and remitted on the quarterly sales tax return. No permit other than an Iowa sales tax permit is required to collect and report this tax. Sales of tangible personal property in Iowa are subject to sales tax unless exempted by state law.

The retailer must add the tax to the price and collect the tax from the purchaser. A retailer may include the tax in the price, but must post a notice or make a statement on the invoice that the purchase price includes the sales tax. This is typically done when selling alcoholic beverages or admissions to movie theaters or sporting events. Sales tax is applied and due when the first use of taxable services occurs, or potentially could occur or when taxable goods are delivered, not when payment is received from the customer.

It is important to file the return and pay the tax by the due date to avoid penalty and interest. A return must be filed with zeros if a business does not have sales to report. Learn more. If a due date falls on a weekend, federal holiday, or legal holiday as defined in Iowa Code section 4.

If filing on paper, the postmark date is accepted as the filing date. When applying for a permit, a retailer estimates the amount of sales tax to be collected.

Local option tax collections are not included in the amount. The filing frequency is based on the estimate. The filing frequency may need to be changed if tax collections increase or decrease substantially over multiple filing periods.

Retailers can request the change online or by using form , Request for Change, Correction or Cancellation of Tax Permit. In addition, the Department may change the filing frequency. Returns must be filed as usual until the filing frequency is changed. The change is usually effective at the beginning of the next year or quarter. You are also allowed to include on this line occasional taxable purchases that you make where sales tax is not collected by your supplier.

A hair salon purchases bottles of shampoo to be sold out of a display case. The salon did not pay sales tax to its supplier since it intended to resell the shampoo. However, several bottles were used by the salon in the performance of their service. The shampoo that was used is goods consumed. The salon must report the price it paid to its supplier on the goods consumed line of the return and pay tax on it. A clothing store purchases suits tax free for resale.

The owner of the store needs a new suit. The suit removed from inventory is goods consumed. The price the owner paid to the supplier must be reported, and the tax must be paid. A person who makes craft items to be sold at craft shows does not pay sales tax to suppliers for materials. These materials are incorporated into the craft items to be sold. They are not goods consumed and should not be reported on line 2.

Exemptions not the same as deductions on income tax returns. The following should be included on line 1, gross sales, and then exempted on line 4 of the return. Sales of taxable services performed on or in connection with new construction, reconstruction, alteration, expansion, or remodeling of a building or structure.

Sales of exempt industrial machinery, equipment, and computers.