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Effective January 1, 2009, a purchaser, purchaser’s seller or certified service provider (CSP), or purchaser holding a direct pay permit will not be liable for sales/use tax, local option sales tax, or interest/penalties for nonpayment of tax, if they relied on certain state-provided information contained in the state’s taxability matrix, taxability databases, or any other location where erroneous data regarding tax rates, boundaries, or taxing jurisdiction assignments appears. (S.F. 592, Laws 2007, effective July 1, 2007)


A tax amnesty program, set forth by the Iowa Department of Revenue, will commence on September 4, 2007 and end on October 31, 2007. Upon written application, an authorized taxpayer will be able to pay delinquent taxes in full, plus fifty percent of the interest that is due without being liable for further interest, penalties, or civil or criminal prosecution. Applicable taxpayers include those who, as of December 31, 2006, have delinquent tax liabilities, including tax due on unfiled returns, tax liabilities owned to the Department, or tax liabilities not reported or established but delinquent. Any taxpayer participating in the program must renounce all administrative and judicial rights to challenge the imposition of the tax and its amount, except for federal audit adjustments completed after May 24, 2007. Furthermore, amnesty will not be granted to a taxpayer who is the subject of an active criminal investigation or who is a party to a criminal proceeding involving nonpayment or fraud in relation to any Iowa tax. (S.F. 580, Laws 2007, effective May 24, 2007)


New rules passed in a series of Iowa bills provide a use tax credit for the purchase and replacement costs incurred by an electric utility transitioning to soy-based transformer fluid. Soy-based transformer fluid is defined as a non-conductible fluid that is made of at least 98% soy-based products. The charges must be within June 30, 2006 and January 1, 2007. The credit is limited to $2 per gallon, up to 60,000 gallons. Any excess credit is refundable. (S.F. 2402, Laws 2006, Effective November 29, 2006)


Clothing and footwear less than $100. Also applies to items put on lay away or ordered by mail during the holiday. Does not include protective gear, athletic gear or accessories. See Details


In an effort to implement the Streamlined Sales Tax Act, the Iowa Department of Revenue has adopted new sales and use tax regulations. These regulations are effective February 23, 2005. Among the new changes are the adoption of Chapter 211, “Definitions,” Chapter 219, “Sales and Use Tax on Construction Activities,” and Chapter 231, “Exemptions Primarily of Benefit to Consumers,” of the Iowa Administrative Code. According to the Iowa Administrative Bulletin, the newly drafted rules are intended to accomplish the following: (1) to explain the changes to Iowa sales and use tax law made by the Streamlined Sales and Use Tax Act; (2) to preserve the existing interpretation of portions of Iowa sales and use tax law which the Streamlined Sales and Use Tax Act does not change; and (3) to omit from the new rules as many references as possible to sales and use tax law as it existed prior to July 1, 2004, the effective date of the Streamlined Sales and Use Tax Act. (ARC 3818B, Iowa Administrative Bulletin Vol. XXVII, No. 11, p. 737, November 24, 2004)



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