Iowa's state Seller's permit   ( Sales Tax (get Seller's Permit) Permit ) rate was 5% through June 30, 2008.

The Sales Tax (get Seller's Permit) rater is now 6%.

1. What is the Seller's permit   ( Sales Tax (get Seller's Permit) Permit ) Holiday?

Tax holiday means you don't pay tax.  Tax is not due on the sale or use of certain articles of clothing or footwear if the sales price of the article is less than $100.00 and the sale takes place during a period beginning at 12:01 a.m. on the first Friday in August and ending at 12:00 midnight of the following Saturday.

3. Do contractors such as a building contractor pay Iowa Seller's permit   ( Sales Tax (get Seller's Permit) Permit )?

A contractor is considered to be the consumer of building materials and supplies purchased for use in a construction contract, and is, therefore, responsible for paying Seller's Permit  ( Sales Tax (get Seller's Permit) Permit ) at the time the purchases are made, or use tax if the purchases were made tax free.

Suppliers that sell to building contractors must charge Seller's permit   ( Sales Tax (get Seller's Permit) Permit ) on the purchase price of the items.

4. Are churches and nonprofit organizations exempt from tax?

Nonprofit entities, churches, and religious organizations are not automatically exempt from paying state Seller's Permit  ( Sales Tax (get Seller's Permit) Permit )es on taxable goods and services. This is true even if these entities are exempt from the payment of state and federal income taxes. State Seller's permit   ( Sales Tax (get Seller's Permit) Permit ) must be paid unless some other general Seller's permit   ( Sales Tax (get Seller's Permit) Permit ) exemption applies. Local option Seller's permit   ( Sales Tax (get Seller's Permit) Permit ) must also be paid on purchases made in jurisdictions which impose the tax.

Purchases made for resale are exempt from all Seller's Permit  ( Sales Tax (get Seller's Permit) Permit ).

In other words, a nonprofit corporation, church, or other religious organization is treated the same as any other private citizen for sales and use tax purposes when purchasing goods and taxable services at retail.

However, sales of items to any Iowa private nonprofit educational institution used for educational purposes are exempt. Sales from fund-raising activities are exempt from Seller's permit   ( Sales Tax (get Seller's Permit) Permit ) to the extent that the proceeds are used for educational, religious, or charitable purposes. However, the gross receipts from games of skill, games of chance, raffles, and bingo are always subject to Seller's Permit  ( Sales Tax (get Seller's Permit) Permit ).

5. What should I do if I don't receive my Seller's Permit  ( Sales Tax (get Seller's Permit) Permit ) return?

Iowa Seller's permit   ( Sales Tax (get Seller's Permit) Permit ) is filed and remitted electronically. The Department does not mail returns.

6. How often do I file a Seller's permit   ( Sales Tax Permit ) return?

The Department determines how often Seller's permit   ( Sales Tax (get Seller's Permit) Permit ) returns are due based on the estimated amount of Seller's permit   ( Sales Tax (get Seller's Permit) Permit ) collection that the retailer entered on the permit application.

7. How do I apply for a tax permit?

Anyone making a retail sale in Iowa must obtain a sales or use tax permit from the Iowa Department of Revenue. Selling without a permit is a serious misdemeanor.

8. I sell at a flea market, how do I obtain a temporary Seller's permit   ( Sales Tax (get Seller's Permit) Permit ) permit?

Sponsors of flea markets, craft shows, antique shows, and other temporary events must verify that the exhibitors are licensed to collect Seller's permit   ( Sales Tax (get Seller's Permit) Permit ). Sponsors must obtain an Iowa Seller's permit   ( Sales Tax (get Seller's Permit) Permit ) permit number or a written good faith statement from each vendor. Sponsors may be responsible for Seller's permit   ( Sales Tax (get Seller's Permit) Permit ) not collected by the vendors if they do not obtain the proper information from vendors.

9. Do farmers pay Seller's permit   ( Sales Tax (get Seller's Permit) Permit ) on the purchases they make?

Certain purchases by farmers may be exempt from the Iowa sales and/or use tax. If you claim exemption on any purchase, you must be able to show that you are entitled to it by providing a valid exemption certificate to the seller of the property. A separately completed exemption certificate is not necessary for each similar exempt purchase; if the retailer chooses, a "blanket exemption certificate" on file with a given retailer is sufficient.

Vehicles

A 5% one-time registration fee is imposed on the purchase prices of vehicles subject to registration and on any implement customarily drawn by or attached to a registered vehicle. This includes camping trailers and livestock trailers.

Farm tractors, combines, and other such vehicles are exempt because they meet all three of the following requirements: they are used directly and primarily in agricultural production, they are self-propelled, and they are not subject to registration.

Real property

The purchase of machinery and equipment which will become real property after installation (that is, a substantially permanent part of the farm property) is usually taxable. In general, machinery or equipment is real property if its removal after installation is difficult or if removal substantially lessens the value of the machinery or the location where it was placed.

Parts and supplies

Replacement parts used in the operation of eligible farm machinery or equipment are exempt from Seller's permit   ( Sales Tax (get Seller's Permit) Permit ).

10. Will I be charged penalty and interest if I don't file on time?

A penalty of 10% will be added to the tax due if the return is not filed by the due date and at least 90% of the correct tax is not paid by the due date.

12. Which services are taxable in Iowa?

Many services are taxable. Persons performing these services at retail must charge Iowa Seller's permit   ( Sales Tax (get Seller's Permit) Permit ).

• Aircraft lease or rental, 60 days or less
• Aircraft repair, remodeling, or maintenance, except when used in a scheduled or nonscheduled interstate FAA certified air carrier operation
• Alteration and garment repair
• Armored car services
• Bank and financial institution service charges
• Barber and beauty services
• Battery, tire, and allied services
• Boat repair
• Cable/pay television fees
• Camera repair
• Campgrounds
• Carpentry
• Carpet and upholstery cleaning and repair
• Communication services; excluding Internet access fees
• Dance school and dance studio
• Dating services
• Demolition
• Drain cleaning; unplugging toilets, sinks, and sewers
• Dry cleaning, pressing, dyeing, and laundering. Beginning 7-1-15, the use of self-pay washers and dryers is exempt from tax.
• Electrical and electronic repair and installation
• Employment and executive search agencies
• Excavating and grading
• Exterminators
• Farm implement repair of all kinds
• Flying service and instruction
• Furniture repair and cleaning
• Fur storage and repair
• Garbage collection and disposal, nonresidential commercial only
• Golf and country clubs and all commercial recreation fees, dues, and charges
• Gun repair
• House/building moving
• Household appliance, television, and radio repair
• Investment counseling
• Janitorial and building maintenance or cleaning; non-residential only
• Jewelry and watch repair
• Landscaping, lawn care, and tree trimming and removal
• Limousine, including driver
• Machine operator fees
• Machine repair of all kinds
• Massage; unless performed by a licensed massage therapist
• Mini-storage
• Motor repair
• Motor vehicle, recreational vehicle, and recreational boat rental; when rented without a driver or operator
• Motorcycle, scooter, and bicycle repair
• Oilers and lubricators on vehicles and machines
• Office and business machine repair
• Painting, papering, and interior decorating
• Parking facilities
• Pet grooming
• Pipe fitting
• Plumbing, including drain cleaning and unplugging toilets, sinks, and sewers
• Reflexology
• Roof, shingle, and glass repair
• Security and detective services
• Sewage services, nonresidential commercial only
• Sewing and stitching
• Shoe repair and shoeshine
• Sign construction and installation
• Storage warehouse or lockers of raw agricultural products
• Storage of household goods
• Swimming pool cleaning and maintenance
• Tanning beds or tanning salons
• Taxidermy
• Telecommunication services; excluding Internet access fees
• Telephone answering service and telephone services
• Test laboratories, except tests on humans and animals. Beginning 7-1-15, environmental testing is not taxable.
• Tin and sheet metal repair
• Tree trimming and removal
• Turkish baths and reducing salons
• Vehicle repair
• Vehicle wash and wax
• Water conditioning and softening
• Weighing
• Welding
• Well drilling; repair only
• Wood preparation (for example, stripping, cleaning, sealing)
• Wrapping, packing, and packaging of merchandise other than processed meat, fish, fowl, and vegetables
• Wrecker and towing

13. Are sales of tangible personal property always taxable?

Yes, unless a specific exemption has been written into the law.

14. Does this site provide tax help?

Unfortunately our site only helps in filing a seller's permit.