Third quarter sales tax returns due October 31

The Iowa Department of Revenue has received a number of contacts from sales tax permit holders who file returns on a quarterly basis. Sales tax filers are concerned they do not yet have the two forms covering the September and December quarters. Please be advised that the sales tax returns for the third and fourth quarters are mailed out from our office before the end of September.

Third quarter returns must be postmarked or handed in to our office by October 31. If you have any questions regarding mailing schedules for sales tax returns, please e-mail us.

Tax classes scheduled

Do you need help with Iowa taxes? Starting a new business? We have Tax Specialists holding classes at community colleges and other locations all around Iowa. Sales tax, Local Option taxes, Withholding, getting a tax permit...all of these topics and more are covered in our classes. Visit our web site and click on the map to locate a Tax Specialist near you. Their schedules are posted, or you can call or e-mail a specialist to set up a private meeting for your business or organization.

Property Tax Implementation Committee formed

The Iowa Legislature has mandated the establishment of a new Iowa property tax committee. To learn more about the committee, its purposes, members and meeting schedule, visit our web site.

Iowa withholding and interstate truck drivers

On July 6, 1990, President Bush signed into law the Amtrak Reauthorization and Improvement Act of 1990. This federal law "prohibits states from imposing an income tax on nonresident interstate railroad and trucking services performing services in the state."

Iowa follows this law and it is recorded in 701 IAC 46.4(2)12. This means that Iowa employers are required to follow the federal law regarding withholding for non-residents.

The primary issue is that an Iowa employer should not withhold Iowa income tax on the wages of a nonresident interstate truck driver. The withholding should be for the state of which the employee is a resident.

Local option tax reminder

A reminder that Iowa local option sales tax and school infrastructure local option tax jurisdictions changes are effective on January 1 and July 1 each year. The current list of jurisdictions is available on our web site.

Got Research?

Declaratory orders, rules and legislative issues are found in the Tax Research area of our web site.

Hotel/Motel tax means NO local option tax

In a city or county which has one or both of the local option taxes and a hotel/motel tax, only the hotel/motel tax is charged on room rental. Neither of the local option taxes are charged on sales subject to hotel/motel tax. The information in this paragraph is no longer correct. Please see our hotel/motel Q&A.

Local option taxes do still apply on hotel sales other than room rental. For example, sales in a hotel gift shop would be subject to local option tax, since those sales are not subject to hotel/motel tax.

Tattooing not subject to Iowa tax

Because it is not listed among the state's "enumerated services," the service of tattooing is not subject to Iowa sales tax.