Iowa Department of Revenue

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The Iowa Department of Revenue oversees the collection the administration of tax revenue for the state of Iowa. It is responsible for the following tasks:

  • distributing general information on taxation;
  • collecting taxes, fees, and penalties;
  • auditing taxpayers; and
  • handling appeals and protests.

The Iowa Department of Revenue works with individuals, businesses, tax professionals, and local governments.

The department produces quarterly and annual reports on all the taxes it handles. It provides tax information to new businesses in Iowa and to out-of-state businesses. All forms required for the filing and remittance of taxes in Iowa are available on the IDR website.

The first significant state tax created by the IDR was a 2-cent tax per package of cigarettes, in 1921. Sales and income taxes were not created until 1934, to relieve some of the burden of property tax. Taxes currently administered by the department include, but are not limited to:

  • cigarette tax;
  • corporation income tax;
  • hotel and motel tax
  • individual income tax;
  • motor fuel / diesel fuel tax;
  • property tax;
  • sales tax and consumer use tax; and
  • withholding tax.

Iowa has been a full member of Streamlined Sales Tax since 2005.

Iowa Exemption Certificates

Iowa allows taxable goods and services to be purchased tax-free under certain conditions. For example, an item may be exempt from sales tax if it is purchased for resale, or if it is purchased by an exempt organization. Sellers should know why purchasers wish to buy something without paying sales tax, and should maintain accurate records of all exempt sales.

The Iowa Department of Revenue website addresses the taxability of tangible personal property and services in the manufacturing industry. It provides a Sales Tax Exemption Certificate in pdf form. Manufacturers who sell the tangible personal property they produce must ask for exemption certificates when selling their products to other businesses that will then resell them.

Anyone wishing to purchase a taxable item tax-free must provide a properly completed Iowa sales tax exemption certificate to the seller. Even non-profit entities, such as government agencies or schools, are required to provide the seller with an exemption certificate.

Since Iowa is an SST state, the Streamlined Sales and Use Tax Certificate of Exemption may be applicable.

Create an exemption certificate for Iowa, or any other state, with Avalara CertExpress.

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