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Policy letter: Sales of ArteFill, a prescription drug used to fill out nasolabial folds (laugh lines), are exempt from tax.

Protest resolution: The Department denied the child care credit because the receipts were falsified.

Protest resolution: The protester did not have records to substantiate child care expenses for all three years. The Department allowed the child care credit for two years but denied the credit the third year.

Protest decision: Protester did not file the refund claim within three years after the payment was due. Therefore, the Department correctly denied the claim.

Policy letter: The letter clarifies that stairway lifts, bath lifts, and other mobility enhancing equipment must be prescribed in order to be exempt from sales tax.

Protest resolution: Protester changed residency and was allowed a part-year credit, but failed to report military income on the Iowa return.

Policy letter: The letter states that the services which one testing laboratory performs for another testing laboratory are taxable.

1. Amends rule 701—67.12(452A) and the implementation clause to require that an invoice for the transportation of ethanol blended gasoline or biodiesel blended fuel state its designation.

2. Amends subrule 68.2(1) to show that the tax rates for gasoline (21¢) and ethanol blended gasoline (19¢) are the same for fiscal year 2010 as they were for fiscal year 2009.

3. Amends subrule 68.2(2) to exclude aviation gasoline from the formula for determining the tax rate for gasoline and ethanol blended fuel beginning calendar year 2009 for tax rates effective July 1, 2010, and after.

4. Amends rule 701—68.18(452A) and the implementation clause to require a bill of lading to identify the percentage of renewable fuel in the product being transported and state whether any diesel fuel being transported is dyed or undyed.

1. Amends subsection 10.71(1) to reflect the increase in the penalties for the illegal use of dyed fuel.

2. Amends subrule 10.71(2), paragraphs "a" through "e," to reflect the increase in the penalties for the illegal importation of untaxed fuel.

3. Amends subrule 10.71(5) to reflect the increase in the penalty for a person interfering with the inspection of fuel or shipping papers by authorized Department of Revenue or Department of Transportation personnel.

Policy letter: The e-mail explains how sales of photographic services to customers in Iowa and Nebraska by a Nebraska photographer are to be treated for the purposes of Iowa sales and use tax law.

Protest resolution: The taxpayer was determined to be a part-year resident in both 2001 and 2003.

Protest resolution: Tax paid on the lease payments and subsequently on the purchase price is not double taxation.

Memorandum: The person holding a life estate in property, not the titleholder, is entitled to any property tax credits associated with the property.

Memorandum: A person must occupy the property during any part of the fiscal year beginning July 1 of the base year in order to claim the elderly tax credit.

Policy letter: The environmental protection charge is not part of the taxable sales price of petroleum.

Policy letter: A bottled water product called Evolv does not contain sweeteners and is therefore a food that is exempt from tax.

Date Updated: 10-5-09

Tax Type: Sales/Use, Link: 09300058

Policy letter: The sale of an attic fan which is powered by solar energy is exempt from Iowa tax.

Date Updated: 9-28-09

Tax Type: Sales/Use, Link: see below

Rules updates:

1. Amends rule 701—18.20(422,423) by adopting new subrule 18.20(7). The amendment provides definitions used in the taxation of communication service, telecommunications service, ancillary service and other similar communication service and expands and clarifies provisions governing these services. The amendment is required for compliance with the Streamlined Sales and Use Tax Agreement.

2. New rule 701—212.8(423). This new rule deals with payments made by a third party, such as a reimbursement to a retailer from a manufacturer for a manufacturer's coupon.

Tax Type: General Administrative, Link: 701 IAC 7.61

New rule: This rule describes the Department of Revenue's process to petition for rule making as allowed in Iowa Code Chapter 17A.

Date Updated: 9-21-09

Tax Type: Individual Income, Link: 09201057

Protest resolution: The Department canceled the assessment because it was not dated within three years of the due date of the return.

Tax Type: Individual Income, Link: 09201056

Protest resolution: The Department denied the child care credit because the expenses were too much for that level of income and because there were two sets of receipts for the same expenses..

Tax Type: Individual Income, Link: 09201055

Protest resolution: The Department denied the child care credit because the expenses were too much for that level of income.

Tax Type: Individual Income, Link: 09201054

Protest resolution: Payments to protester were determined to be alimony and therefore taxable income.

Protest resolution: The Department denied the child care credit because the taxpayer could not substantiate the expenses.

Protest resolution: The Department denied the child care credit because the receipts were falsified.

Policy letter: The letter explains that bringing nonprescription vaccine into Iowa and giving it to the uninsured is a taxable use of the vaccine in this state.

Policy letter: The e-mail explains when a sale with elements in both Iowa and Ohio is to be sourced to Iowa and not Ohio, thus giving Iowa the first right of taxation.

Policy letter: The full six cent state sales tax is to be collected on sales of gas and electricity in jurisdictions where a franchise fee is collected on those same gas and electricity sales.

Policy letter: Sales by the American Parkinson's Disease Association are exempt from tax but sales in Iowa to that organization are taxable.

Policy letter: Optional warranty contracts which provide for the furnishing of labor and materials are taxable under § 423.2(1) "a" (4) of the Code, and optional warranty contracts which provide for the furnishing of labor only are taxable under § 423.2(6) of the Code.

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