Iowa Department of Revenue Changes in Sales and Use Tax Collections Effective July 1st
June 30, 2022
ABI public policy staff has reported on personal and corporate income tax reduction, elimination of retirement income taxes and even the elimination of sales taxes on airplane repair. Less mentioned are some efficiencies in the collection of sales and use taxes the Iowa Department of Revenue instituted through law this session that become effective on July 1, 2022. Going forward:
- Taxpayers will report sales and use tax on the same return and will only need one permit for both sales and use tax.
- Taxpayers will either file and pay monthly or annually, depending on the amount of tax collected.
- Monthly returns must be filed and tax must be paid electronically.
- Semimonthly deposit payments are no longer required.
A guidance has been put together by IDR to help implement the changes and can be found here.