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Iowa Rate Change Notifications to Comply with SSUTA


Every taxpayer needs to know about rate increases and decreases. Recognizing this, the Iowa Department of Revenue recently released a Notice of Intended Action to amend Chapter 240 of the Iowa Administrative Code, "Rules Necessary to Implement the Streamlined Sales and Use Tax Agreement." At issue here is the "effective dates of taxation rate increases or decreases… ."

The proposed amendments were made to keep Iowa in compliance with the Streamlined Sales and Use Tax Agreement. The following rules apply, pursuant to Iowa Administrative Code 701-240.7(423):

Tax Rate Increases

When a tax rate is set to increase, "the beginning date of the rate change shall be the first day of the first billing period occurring on or after the effective date of the rate increase."

Tax Rate Decreases

When a tax rate is set to decrease, "the new rate shall apply to bills rendered on or after the effective date of the rate decrease."

It is worth Iowa's while to maintain compliance with the SSUTA. As the Notice of Intended Action reminds, "[c]ompliance with the Agreement enables the Department to collect upwards of $13 million a year from remote sellers."

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Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.