from the Director:
Let me take this opportunity
to thank you for a great filing quarter (first quarter, 2006). For
the first time, we experienced a quarter when individual income tax
returns, withholding tax returns and sales and use tax returns were
due at the same time and electronic filing options were in place for
each. I am pleased to report almost all withholding and sales/use returns
were filed electronically, along with an ever increasing percentage
of individual income tax returns.
Providing the best customer
service possible was the goal of the department in making electronic
filing options available. As part of our customer service focus, we
are ready to address concerns by telephone and e-mail from all Iowans
when needed. When we experience a quarter like this for the first time,
we need to be sure we have done everything possible to make it go smoothly.
It did. Your participation as partners with us in the transition to
electronic filing made it possible. Everything went really well!
Electronic filing is available
24 hours a day, seven days a week. Your refunds are processed and received
by you faster. Record storage is reduced and retrieval for responding
to your questions is quicker and simpler. We have moved together into
the future and we all benefit from these advantages of filing electronically.
Thank you for partnering with us.
Mark R. Schuling
Fuel eFile & Pay
Iowa withholding, sales, retailer's
use, consumer's use and LPG fuel taxes are now filed and can be paid
electronically through the Department's eFile & Pay system.
Motor fuel tax will soon be
added to this list of tax types that use the eFile & Pay system.
This transition will take place in two steps as
described below. Each group of filers will receive additional information
by mail, including their Business eFile Number (BEN).
July 2006 -
Motor fuel tax returns filed by suppliers, restrictive suppliers,
importers and blenders who report less than 100,000 gallons
of fuel per month will be required by statute to be filed electronically
through the online eFile & Pay system. Electronic payment of the
tax is also required. A direct debit payment can be made through eFile & Pay.
Another electronic payment option is ACH Credit. This change will begin with
the June 2006 return, which is due in July 2006. This group of filers
will not submit any schedules.
September 2006 -
Tentative date for motor fuel licensees, including storage facilities
and terminals, reporting 100,000 gallons of fuel or more per month
to begin electronic filing. They will be required by rule to file
their schedules, return and payment electronically beginning
with returns due in September 2006. There will be two methods
available to file their schedules; Schedule Upload and EDI. We anticipate
the returns will be created by the system using the data reported on
the schedules. More information will be provided as we move closer
to this implementation date.
for a tax permit
When applying for sales tax
or withholding tax permit online, don't forget to go to the top of
the second page of the application and click on “GET PIN.” Print your
PIN (personal identification number) information. If you need to quit
in the middle of applying, you can exit and then continue later using
Taxable or exempt?
Horses purchased to be used
for trail rides are not exempt from sales tax as agricultural livestock
or draft horses. They are taxable, as are feed and accessories for
sales tax holiday
The 2006 Sales Tax Holiday
will be held Friday and Saturday, August 4-5.
Please be aware that...
- This is an annual event
on the first Friday and Saturday of August.
- The holiday does not include
- Businesses that are open
on these days are required to participate.
- Businesses cannot advertise
that they will pay or otherwise absorb the sales tax on items that
- When completing the tax
return, report all sales as gross sales and list qualifying Sales
Tax Holiday sales on the "exemptions" line.
you sell clothing or footwear in the State of Iowa , this law may
impact your business.
- Exemption period: from
12:01 a.m., August 4, 2006, through midnight , August 5, 2006.
- No sales tax, including
school and local option sales taxes, will be collected on sales of
an article of clothing or footwear having a selling price less than
- The exemption does not
apply in any way to the price of an item selling for $100.00 or more.
- The exemption applies to
each article priced under $100.00 regardless of how many items are
sold on the same invoice to a customer.
information is available online.
seeds, plants, and fruit trees
If the purchaser of vegetable
seeds, plants or fruit trees will be consuming the produce from the
seeds, plants or trees, the sale is taxable in Iowa . Sales of vegetable
seeds, plants, and fruit trees are exempt if the buyer will be selling
About Iowa Business Taxes
Are you a new business? Or
just need to know more? Our tax
classes are held all year statewide.
Make House Calls!
Gather your employees or your
organization's membership. We will come to you and address your Iowa
business tax concerns. This service is free of charge. Just e-mail
us to contact you.