State Sales Tax Nexus and General Overview

Need to Understand a State's Sales Tax Situation? Here it is...

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Iowa (IA)

IA Sales Tax - Name of Tax and General Application:

Iowa imposes a tax on retail sales of tangible personal property and supplies of certain services in the state. This tax is referred to as a "sales tax". Additionally, there is a tax imposed on use of tangible personal property or certain services in the state. This is referred to as a "use tax" and does not apply if sales tax has already been paid.

IA Nexus - General Requirements:

The word "nexus" means a link or connection. If you are determined to have nexus to a U.S. state then you are subject to that state's sales and use tax rules and must collect and remit sales tax to the state. This is known as a "filing obligation."

Each state has a different definition of nexus. However, if the answer to any of the following questions is yes, it is likely that a company has nexus as legally defined in most U.S. States.

Does the company own property in the state? Does the company have employees living in the state? Does the company regularly send employees in the state to perform services? Does the company have an agent acting on behalf of the company in the state?

Iowa requires every retailer who has an office or other place of business or any representative operating in the state to collect sales or use tax on sales of tangible personal property which are to be used in the state.

IA Local Tax - Do Localities Impose Tax?

Yes, Iowa imposes local sales tax.

IA Resale Certificate Renewal Agreements:

In Iowa the exemption as a result of purchases for resale is covered under an exemption certificate. This is issued by the Department of Revenue or provided by the seller.

IA Resale Certificate Renewal Periods

There is no mention of an expiration for exemption or resale certificates in Iowa.

IA Statute of Limitations

Three years from the date the return was filed.