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Iowa Taxability Matrix Updated

  • Aug 2, 2012 | Susan McLain

Iowa has been a full member of the Streamlined Sales Tax since October 1, 2005.

Last year, an issue was raised when Iowa recertified last year. Iowa law “…did not reference a zip code-based database when providing for relief from liability for errors with the information provided by the state.”

As a result, the following legislative changes were made:

  • Included in the definition of sales price is “…any state, local, or tribal tax on a retail sale that is imposed on the seller if the statute, rule, local ordinance, or tribal law imposing the tax provides that the seller may, but is not required to collect the tax from the consumer, and if the tax is separately stated on the invoice, bill of sale, or similar document.”
  • Iowa Code §§ 423.31 and 423.49 were amended “…to allow sellers not registered under the Streamlined Sales Tax Agreement to file monthly returns using the Streamlined Sales Tax simplified electronic return.”
  • Clarification of language in “…Iowa Code § 423.52(1) to indicate the Department is not required to provide relief to sellers and CSPs using a state provided, address-based system for assigning taxing jurisdictions when reliance is upon a database derived from zip codes and the Director has given adequate notice.”

For 2012, Iowa's recertification letter noted that they have revised their “candy rule” to “…include the recent Governing Board update of candy classifications.” They have updated their Taxability Matrix effective July 1, 2012.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Susan McLain
Avalara Author Susan McLain
Susan McLain began her career as a technical writer in technology industries such as satellite networking and medical devices. Her skills encompass technical and marketing writing, usability engineering, verification and validation testing and protocol writing, requirements development, business analysis, technical illustration/graphic design and marketing. She has owned her own business providing service to small to medium sized business and in other positions, she has been in project management, documentation and marketing. She is currently the content specialist for Avalara helping to “make sales tax less taxing.”