Iowa sales tax rate reduced on residential energy
reminder that the state sales
tax rate on metered natural gas, electricity, and other qualifying
fuels used for residential energy will be reduced to 3 percent
beginning January 1, 2003. Please note that local option
tax, if any, still applies. Complete
information is available on our Web site.
and school local option taxes
go on board January 1, 2003. You'll find that list
and other information on our Web site.
make sales into Linn County, you should know that the regular
local option tax will expire in all jurisdictions except
Bertram and Prairieburg on December 31, 2002. The tax was
approved to be in effect just one year. Only the jurisdictions
of Bertram and Prairieburg are subject to local option tax
after December 31, 2002. If there is a refund of local option
tax in 2003 for a sale made in 2002, it should be reported
on the local option schedule by either reducing the local
option tax collected in that reporting period or by showing
it as a negative amount, if no sales were made in Bertram
local option tax in Liscomb/Marshall County expired 6/30/02.
for off-road use
by an ATV dealer for off road use are subject to sales tax.
Farmers may purchase ATVs exempt from sales tax if the ATV
is used off road and is used directly and primarily for agricultural
purposes. That is, using an ATV to fix livestock fences or
for transporting food or water to livestock would both involve
activities that were directly related to agricultural production.
As long as the ATV is used primarily for similar purposes
it is eligible for tax exemption. Vehicles, including ATVs,
that are subject to registration or registered for highway
use are generally subject to use tax and are not eligible
for the agricultural production exemption.
tax due dates
site includes an Excel
file of due dates.
hints to make calls and office visits easier and faster
- If you
received correspondence from us, be sure to call the number
listed on it. If not, you may find you have to make a second
any correspondence you received from us available when
you call or come in to our Des Moines office.
you receive a billing after you paid the tax? Bring proof
of payment to help us resolve the situation.
you speak with someone from our office, be sure to get
his or her first name. This may help if you have any follow-up
finally, please be aware that you can always e-mail
us or write us if you are unable to call or visit.
Write to us at: Iowa Department of Revenue and Finance,
PO Box 10457, Des Moines IA 50306
made to churches and other nonprofit entities
entities, churches and religious organizations are not automatically
exempt from paying state sales taxes on taxable goods and
services. This is true even if these entities are exempt
from the payment of state and federal income taxes. State
sales tax must be paid unless some other general sales tax
exemption applies. Local option sales taxes must also be
paid on purchases made in jurisdictions which impose the
made for resale are exempt from all sales tax. In other words,
a nonprofit corporation, church or other religious organization
is treated the same as any other private citizen for sales
and use tax purposes when purchasing goods and taxable services
about sales to and sales
by exempt entities.
tax permit certificate
Sales tax permits
are no longer required to be posted at your place of business.
Therefore, our agency no longer provides a permit certificate
to be used for that purpose. New businesses receive only
a postcard with their permit number on it.
by farm equipment dealers
Be cautious making exempt sales to
owners of acreages. In general, these acreages do not qualify
for agricultural exemptions. Food, supplies and equipment
for horses and other pets, for example, are not exempt sales.
Our taxpayer service specialists conduct
Iowa tax classes at locations throughout the state. These
classes cover a variety of tax issues. For more information,
view the latest schedule
of class offerings on our Web site.
2003 we will be sending out forms covering six months at
a time. As always, please check the dates on the return you're
using to be sure it is the one for the correct tax period.
contracts and exempt entities
Beginning January 1, 2003, designated
exempt entities will be able to provide a special exemption
certificate to construction contractors so they can buy building
materials for construction contracts without paying tax.
Check our Web site for
agents must register with Iowa
a federal identification number does not automatically register
you as a withholding agent in Iowa. You can register
with us online.
unforeseen circumstances, the department will be unable to
continue to provide withholding coupons in a booklet format.
The 2003 coupons are the same size and design as in the past;
only the packaging is different. Withholding coupons will
be mailed middle to late January. [Editor's Note: Beginning
January 1, 2006, withholding is filed and paid through eFile & Pay.
Returns/coupons are no longer mailed.]
have been made to the tax tables again this year. The
Withholding Tax Guide for tax periods on or after January
1, 1998 is still current.
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