|
|||||||||||||||||||
Iowa Tax / Fee Descriptions and Rates
|
Environmental Protection Charge Gambling, social and charitable Household Hazardous Materials Fee |
Property Tax Levied Before Credits |
Revenues Collected
/ Distribution Information:
Statistical Reports / Annual Reports |
|
Iowa Automobile Rental Tax
Tax Rate: 5% tax on the rental charge for certain vehicles. This is in addition to the state sales/use tax and local option tax, if any.
Distribution of Funds: Road Use Tax Fund
Due Date(s) of Returns: This excise tax is reported and remitted on a quarterly basis electronically through eFile & Pay. No permit other than an Iowa sales or use tax permit is required to collect this tax.
Iowa Cigarette Tax
Description: The tax is imposed on the sale of cigarettes and must be paid by the person making the first sale in Iowa. A stamp affixed to each cigarette package is proof that tax was paid.
Tax Rate: $1.36 per package of 20; $1.70 per package of 25
Distribution of Funds: State General Fund and the Health Care Trust Fund
Due Date(s) of Returns: Tax returns must be filed by the holder of a state or manufacturer’s permit by the 10th day of each month for the preceding calendar month.
See cigarette/tobacco forms for more information and forms.
Iowa Contractor Registration Fee
This fee is administered by Iowa Workforce Development (IWD). Construction contractors are required by Iowa law to register every two years with IWD. Conditions for registration include compliance with workers' compensation law and an unemployment insurance (FUTA) employer account number. The registration fee is $25. Most out-of-state construction contractors working in Iowa will be required to file a bond with IWD.
For more information, call 1.800.562.4692 or visit IWD's Web site.
Iowa Corporate Income Tax
Description: The tax is imposed on the Iowa net income of corporations doing business within this state or receiving income from property in the state. For tax years on or after January 1, 1987, Iowa imposes an alternative minimum tax equal to 7.2% of Iowa tax preferences. For tax years on or after January 1, 1988, the tax is imposed on the unrelated business income of nonprofit corporations.
Tax Rate: 6% on first $25,000; 8% on next $75,000; 10% on next $150,000; 12% on all over $250,000
Distribution of Funds: State General Fund
Due Date(s) of Returns: Corporation tax returns must be filed by the last day of the 4th month after the close of the tax year. Cooperatives must file a return on or before the 15th day of the 9th month following the close of the cooperative’s tax year. Estimated tax payments are due from most corporations on a quarterly basis. Nonprofit corporation returns with unrelated business income are due on the 15th day of the 5th month following the close of the tax year. See corporation forms.
Corporations must register and pay an annual fee with the Iowa Secretary of State (ISS). For more information, call 515.281.5204 or visit ISS' Web site.
Iowa Drug Stamp Tax
Description: Tax is imposed on dealers in possession of specified quantities of marijuana and other controlled substances. See Drug Stamp Tax Law for details.
How to obtain stamps:
- Stamps may be purchased at the Iowa Department of Revenue, Taxpayer Services, Hoover Building 4th Floor, Des Moines, Iowa. Please call the Taxpayer Services manager at 515.281.8966 to make an appointment.
- Use this form to order by mail.
Tax Rate: $5/gram of processed marijuana; $750/unprocessed marijuana plant; $250/gram of other taxable substances; $400/10 doses if not sold by weight
Distribution of Funds: State General Fund
Due Date(s) of Returns: Tax payment is required upon possession. The drug tax stamp must be permanently affixed to the substance as proof the tax was paid.
Iowa Environmental Protection Charge
Description: The EPC is imposed on all deposits of petroleum products into non-exempt underground and non-exempt aboveground storage tanks in Iowa.
Tax Rate: 1¢ per gallon of petroleum products deposited in qualifying tanks
Distribution of Funds: Iowa Comprehensive Petroleum Underground Storage Tank Fund
Due Date(s) of Returns: EPC returns must be postmarked by the last day of the month following the close of each quarter. See EPC form and booklet.
Iowa Franchise Tax
Description: Tax is imposed on the income of state banks, national banking associations, trust companies, federally and state chartered savings and loan associations, financial institutions chartered by the Federal Home Loan Bank Board and production credit associations. For tax years on or after January 1, 1987, Iowa imposes an alternative minimum tax equal to 3% of Iowa tax preferences.
Tax Rate: 5% of taxable income
Distribution of Funds: State General Fund. $7 million is appropriated annually to the community attraction and tourism fund.
Due Date(s) of Returns: Franchise tax returns must be filed by the last day of the 4th month after the close of the tax year. Estimated payments are due from most financial institutions on a quarterly basis. Financial institutions which have elected s-corporation status are still subject to the franchise tax, and the shareholders are allowed a tax credit against their individual income tax for their share of the franchise tax paid. See franchise forms.
Iowa Gambling, Social and Charitable
The Social and Charitable Gambling Unit of the Iowa Department of Inspections and Appeals has administrative control for amusement games, contests, casino nights, and commercial promotions operated in the state. In addition, the unit regulates and licenses all games of skill and chance, bingo operations, raffles, and social gambling activities.
Tax information is available in the Iowa Department of Revenue gambling brochure.
Iowa Hotel/Motel Tax
Description: Hotel/motel tax is imposed on the gross receipts from the renting of hotel or motel rooms for 31 consecutive days or less.
Tax Rate: May not exceed 7%. This is in addition to the state tax rate of 5%. The state rate for hotels and motels did not increase to 6% on July 1, 2008. Local option tax, if any, does not apply.
Distribution of Funds: the local government imposing the tax
Due Date(s) of Returns: Hotel/motel tax returns and tax are submitted with quarterly sales tax returns through eFile & Pay. They are due the last day of the month following the end of each calendar quarter.
Rates and answers to frequently-asked questions are available on our hotel/motel information page.
Iowa Household Hazardous Materials (HHM)
Businesses selling household hazardous materials can register to do so on the Iowa Department of Revenue Business Registration form, which is available online.
This permit must be obtained for each location selling household hazardous materials on a retail basis. Manufacturers and distributors that have independent agents selling door-to-door may purchase one permit fee of $25 for the first $3 million in sales of these materials. An additional $100 fee is charged for each subsequent increment of $3 million in sales. Fees are not prorated or refunded and must be renewed annually on July 1.
More information is available in the Iowa Department of Natural Resources HHM brochure.
This fee is sometimes confused with the Household Hazardous Materials Permit Fee. The Hazardous Waste Fee is for the generation, treatment, storage, disposal and transportation of waste that is hazardous.
Businesses that are assigned a hazardous waste identification number from the US Environmental Protection Agency (EPA) will receive a Hazardous Waste Fee form from the Iowa Department of Natural Resources (IDNR), which administers the fee.
More information may be found on this page of the IDNR Web site or call IDNR at 515.281.4367.
Iowa Individual Income Tax
Description: Tax is imposed on Iowa net income of individuals and estates and trusts.
- Individuals who have a net income of greater than $9,000 must file an Iowa income tax return.
- Married taxpayers with a combined net income of greater than $13,500 are required to pay Iowa income tax.
- A person claimed as a dependent on another person's Iowa return and having a net income of $5,000 or more is required to pay Iowa income tax.
- Individuals may also be subject to the minimum tax on tax preferences and a tax on lump sum distributions from pension plans.
Exemption for persons age 65 or older:
- For the 2007 and 2008 tax years, a married couple or a head of household with a total income for the year of $24,000 or less may file for exemption, if at least one spouse (in the case of a married couple) or the head of household is 65 years or older as of December 31 of the year. Starting with the 2009 tax year, this amount is increased to $32,000.
- For the 2007 and 2008 tax years, a single person who is 65 years or older as of December 31 of the tax year may file for exemption if their income is $18,000 or less. Starting with the 2009 tax year, this amount is increased to $24,000.
Tax Rate Schedules, forms, and instructions are available on our income tax forms page.
Distribution of Funds: State General Fund
Due Date(s) of Returns: The final return and any tax owing is due by the last day of the fourth month following the close of the tax year. Individuals may be required to remit estimated tax payments quarterly.
Income tax is also collected through withholding tax. Depending on the amount of tax withheld, withholding tax deposits are due annually, quarterly, monthly or semi-monthly.
See individual income tax forms.
Iowa Individual Income School District Surtax
Description: Upon voter approval, school districts may initiate educational improvement programs where school boards may raise an additional portion of the state cost per pupil. This enrichment amount is raised through a surtax and through an accompanying property tax.
Tax Rate: Not to exceed 20% of state income tax liability. Rate is different for each school district. Lists are available on our income tax forms page.
Distribution of Funds: Local school district imposing the tax
Due Date(s) of Returns: Tax is collected with the individual income tax return. Returns are due the last day of the fourth month following the end of the tax year. See individual income tax forms.
Iowa Individual Income Emergency Medical Services Surtax
Description: A county may impose the surtax by ordinance at the rate set by the board of supervisors not to exceed 1%.
Tax Rate: Up to 1% of state income tax liability. Only Appanoose County imposes this tax (at a rate of 1%) at this time.
Distribution of Funds: County imposing the tax
Due Date(s) of Returns: Tax is collected with the individual income tax return. Returns are due the last day of the fourth month following the end of the tax year. See individual income tax forms.
Iowa Inheritance and Estate Taxes
Description: This tax is imposed on any person other than a surviving spouse, decedent's lineal ascendants, descendants and stepchildren who becomes beneficially entitled to any property or interest by any method of transfer. Administrators, executors, referees and trustees of estate transfers which are taxable may also be liable for such taxes.
Tax Rate: Inheritance Tax: From 1% to 15% depending on the amount of the inheritance and the relationship of the recipient to the decedent. Estate Tax: Amount by which the allowable federal credit for state death taxes exceeds the inheritance tax due from the estate.
Distribution of Funds: State General Fund
Due Date(s) of Returns: In most instances, the return must be filed and tax paid on or before the last day of the ninth month after the death of the decedent. See inheritance tax forms.
Iowa Insurance Premium Tax
Description: This tax is administered by the Iowa Department of Commerce, with the Iowa Department of Revenue serving as a depositing agency for the tax receipts. The tax is imposed on the premiums of every insurance company except fraternal beneficiary associations.
Questions about the tax should be directed to the Iowa Department of Commerce, Insurance Division, at 515.242.6551.
Iowa Insurance Division Web site
The Iowa Alcoholic Beverages Division of the Iowa Department of Commerce is responsible for the regulation and control of alcohol in the State of Iowa. Liquor tax rates and other information can be found on the division's site.
Iowa Local Option Sales Tax
Description: Tax is imposed by counties either countywide or in incorporated or unincorporated areas. Under very special circumstances it may also be imposed by a city. With a few exceptions, it is imposed on sales and services taxed under state sales tax provisions. There is no corresponding local option use tax, except for transactions involving natural gas, natural gas services, electricity, or electric service.
See local option sales tax information.
Tax Rate: Not more than 1%.
Distribution of Funds: To local sales and service tax fund with disbursement to local jurisdictions monthly
Due Date(s) of Returns: Local option sales tax is due at the same time as the state sales tax and is filed through eFile & Pay.
Description: Tax is imposed on homes located in mobile home parks.
Tax Rate: 20¢ per square foot. The tax decreases when the home is more than five years old to 18¢, and again when the home is more than nine years old to 16¢.
Distribution of Funds: Collected by the county treasurer and distributed in the same manner as property taxes.
Iowa Motor Fuel Tax
Description: Tax is imposed on each gallon of fuel sold in Iowa for use in motor vehicles or aircraft. Motor vehicle fuel includes gasoline, diesel fuel, liquefied petroleum gas, compressed natural gas, aviation fuel and ethanol blended gasoline.
Tax Rates:
Gasoline:
July 1, 2002, through June 30, 2003 - 20.1¢/gal
July 1, 2003, through June 30, 2004 - 20.3¢/gal
July 1, 2004, through June 30, 2005 - 20.5¢/gal
July 1, 2005, through June 30, 2006 - 20.7¢/gal
July 1, 2006, through June 30, 2007 - 21.0¢/gal
July 1, 2007, through June 30, 2008 - 20.7¢/gal
July 1, 2008, through June 30, 2009 - 21.0¢/gal
Ethanol Blended Gasoline: 19¢/gal
E85:
January 1, 2006, through June 30, 2007 - 17¢/gal
Effective July 1, 2007 - 19¢/gal
Other:
Aviation Gasoline: 8¢/gal
Special Fuel (diesel): 22.5¢/gal
Special Fuel (LPG): 20¢/gal.;
Special Fuel (aviation jet): 3¢/gal.;
Compressed Nat. Gas: 16¢/100 cubic feet.
Distribution of Funds: Road Use Tax Fund. Aviation fuel tax receipts deposited in state aviation fund. The first $411,311 from motor fuel used in water-craft deposited in the General Fund of the state. The remainder in the Rebuild Iowa Infrastructure Fund
Due Date(s) of Returns: Tax returns are required to be filed by the licensee no later than the last day of the month following the month in which the fuel was withdrawn from the terminal or, in the case of LPG or CNG, placed into the fuel supply tank of a motor vehicle. Importers are required to file semimonthly. See motor fuel forms.
Iowa Motor Vehicle Lease Tax
Description: The tax is imposed on the lease price of a vehicle subject to registration (but not a motorcycle or motorized bicycle) with a gross vehicle weight rating of less than 16,000 pounds and leased for a period of 12 months or more by a lessor licensed under Iowa Code chapter 321F.
Tax Rate: 5 percent use tax on the lease price of certain vehicles
Distribution of Funds: Road Use Tax Fund
Due Date(s) of Returns: Tax is reported and paid by the owner of the vehicle to the county treasurer or Iowa Department of Transportation at the time of registering or titling the vehicle. If this is not required, the tax must be paid by the owner to the Iowa Department of Revenue on or before 15 days from the last day of the month that the tax became due.
Motor vehicle use tax exemption information and worksheets
Description: The gross receipts from sales of vehicles subject to registration are exempt from sales tax but subject to motor vehicle use tax. The tax is paid upon registration to the county treasurer. It is not uncommon for the dealership to collect and remit the tax to the county treasurer on behalf of the buyer.
Tax Rate: 5 percent
Distribution of Funds: Road Use Tax Fund
Motor vehicle use tax exemption information and worksheets
This tax is administered by the Iowa Department of Commerce (IDC), Insurance Division. For more information, contact IDC at 515.281.5707 or visit IDC's Insurance Division Web site.
Iowa Property Tax Levied - Prior to Credits
Description: Property tax is levied on the taxable value of real property. The taxable value may be a percentage of the assessed value as a result of statewide limitations for allowable growth. The assessed value is 100% of market value, except for (1) agricultural realty (assessed according to its productivity) and (2) computers and industrial machinery and equipment (exempt if acquired after December 31, 1993)
Tax Rate: Differs in each locality and is a composite of county, city, school district and special levies. Taxes are levied in terms of dollars per $1,000 of taxable value and are collected locally.
Distribution of Funds: Local jurisdictions
Due Date(s) of Returns: The tax may be paid in two installments, the first of which becomes delinquent on October 1 and the second of which becomes delinquent on April 1.
Iowa Real Estate Transfer Tax
Description: The tax is imposed on the total amount paid for the property. The tax is paid to the county recorder in the county where the real property is located.
Tax Rate: The calculation is based on $1.60 per thousand, with the first $500 being exempt.
Distribution of Funds: 17.25% of the tax receipts are retained by the county. Of the remaining 82.75%, 95% goes in the State General Fund and 5% in the Shelter Assistance Fund for the rehabilitation, expansion, or costs of operations of group home shelters for the homeless and domestic violence shelters.
Due Date(s) of Returns: Tax is payable when the deed or other instrument conveying the real property is presented for recording. Tax returns must be filed by the county recorder with the State Treasurer by the 10th day of each month for tax collected during the preceding month.
Iowa School Infrastructure Local Option Sales Tax
Beginning July 1, 2008, school local option tax (SILO) no longer exists as a separate tax.
Description: Tax is imposed countywide. With a few exceptions, it is imposed on sales and services taxed under state sales tax provisions. There is no corresponding use tax. This is in addition to the state rate of 5%.
See local option sales tax information.
Tax Rate: Not more than 1%.
Distribution of Funds: To local sales and service tax fund with disbursement to local school districts monthly.
Due Date(s) of Returns: Local option sales tax is due at the same time as the state sales tax. Both are filed through eFile & Pay.
Iowa State Sales Tax
Description: The tax is imposed on gross receipts from sales of taxable tangible personal property and taxable (enumerated) services. Exceptions include the sales of certain foods, prescription drugs, medical devices, and farm and industrial machinery, equipment and computers.
See sales and use tax information.
Tax Rate: 5% through June 30, 2008. 6% beginning July 1, 2008.
Distribution of Funds: State General Fund
Due Date(s) of Returns: Depending on the amount of tax collected, a deposit and returns are due annually, quarterly, monthly or semi-monthly. They are filed through eFile & Pay.
Iowa Tobacco Products Tax
Description: Tax is imposed on the sale of all tobacco products except cigarettes and little cigars, which are taxed differently.
Tax Rate:
1. 50% of the wholesale sales price, except snuff and a limitation of tax on the additional tax on some cigars to not exceed 50 cents per cigar.
2. All snuff - $1.19 per ounce, with a proportionate tax at the same rate on all fractional parts of an ounce of snuff. "Snuff" means any finely cut, ground, or powdered tobacco that is not intended to be smoked.
3. Cigars - A limitation of the additional 28% tax increase on some cigars not to exceed 50 cents per cigar. This means all cigars - other than little cigars which are taxed as cigarettes - are all subject to the 22% tax. Of the additional 28% tax increase, the additional tax cannot exceed 50 cents per cigar.
Distribution of Funds: State General Fund and the Health Care Trust Fund
Due Date(s) of Returns: Distributors or certain consumers are required to file tax returns by the 20th day of each month for the preceding calendar month. See cigarette/tobacco forms.
Unemployment taxes are administered by Iowa Workforce Development (IWD). For more information, call 515.281.4199 or visit IWD's Web site.
Iowa Use Tax
Description: Use tax includes:
- The excise tax collected by out-of-state based firms making sales of tangible personal property or certain services purchased for use in Iowa.
- The excise tax on goods or services purchased tax free by consumers and subsequently used in Iowa.
Tax Rate: 5% through June 30, 2008. 6% beginning July 1, 2008.
Distribution of Funds: State General Fund
Due Date(s) of Returns: On or before the last day of the month following the close of the calendar quarter. Retailer's use tax permit holders collecting more than $1,500 per month are required to file on a monthly basis. Retailer's use tax is filed through eFile & Pay.