Legislative Summaries Available Online
the 2004 tax-related legislation passed by the Iowa Legislature and
signed by the Governor are now available on
the department's Web site.
Sales Tax Changes Take Effect July 1
A number of
changes related to the application of sales tax in Iowa are set to
take effect July 1, 2004. Please visit our Web site for more information.
Option Tax Reminder
A reminder that Iowa
local option sales tax and school infrastructure local option tax jurisdictions
can change on January 1 and July 1 each year. The current
list of jurisdictions is available on our Web site.
We also maintain
a list of the newest local
option tax jurisdictions.
Sales Tax Holiday
The annual Iowa Sales Tax
Holiday is scheduled for August 6-7, 2004. To learn more about this
popular yearly event, visit our Sales
Tax Holiday pages.
Churches Exempt From Paying Sales Tax?
religious organizations, and other nonprofit entities are not exempt
from paying state sales taxes on taxable goods and services. This is
true even if these entities are exempt from paying state and federal
State sales tax and local option taxes must be paid unless some other general
sales tax exemption applies. For example, any purchase made for resale is exempt
from state and local sales taxes.
The Iowa Department of Revenue encourages businesses to give customers its
phone number when disagreements over sales tax arise. To talk to a tax specialist,
call 1-800-367-3388. If you prefer, e-mail.
2003 IA 132 Cow/Calf Claim form for corporation and individual income
tax is due (postmark date) October 31, 2004, for annual-year filers
and 10 months after the close of the fiscal year for fiscal-year filers.
If you did not include your IA 132 with your return, do not amend the return.
Send the 2003 IA 132 to:
PO Box 10457,
Des Moines IA 50306-0457
you have questions, please call 1-800-367-3388.
Computers For Your Business?
purchase may be exempt from Iowa sales tax. Your purchase is exempt
if you are a “commercial enterprise,” which includes businesses
and manufacturers conducted for profit, insurance companies and financial
If your business is a “profession” or “occupation,” your
computers are taxable. For example, lawyers and doctors do not qualify for
the exemption. Farming is considered to be an occupation; therefore, farmers
do not qualify for the exemption.
More information is available in our Iowa
Sales Tax on Computers booklet.
Before You Sell!
may be taxable to one buyer and not another.
example, the sale of a skidloader is:
when sold to a farmer if it will be used directly and primarily in
to the 5 percent state rate only when sold to a construction contractor
who will use it directly and primarily in new construction, reconstruction,
alteration, expansion, or remodeling of real property or structures.
to the state rate and any local option when sold to most other customers
2: The sale of T-shirts is:
when sold to a buyer who will resell them
to your typical customer
during the Sales Tax Holiday, if it costs less than $100
3: The sale of band uniforms is:
if sold directly to a school and paid with a school voucher
if sold to the PTA, even if they are giving the uniforms to the school
as a gift
Web Site Changes
Look for changes
to the Department of Revenue Web site sometime after July 1. We are
attempting to make the site easier to navigate and also minimize the
amount of scrolling on most pages. It is our goal not to change page
addresses, so you should not have to redo your Favorites/Bookmarks.
Look for some information
to move to new pages though and additional information to be added
throughout the site over the coming months. If you have trouble finding
information, please contact our
The department is making every effort to inform businesses, professionals and
individuals of these and future changes. Please help us promote the department’s
free "eLists." Our department may not have the resources for future mass
mailings. Notice of future changes will be made through the media, our
Web site and our eList system.
By subscribing to this free
eList news service on our Web site, you will automatically receive
Iowa tax news updates and newsletters. Anyone may sign up!
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