Iowa State Sales Tax Reform, Effective January 1, 2019
February 14, 2019 | David Weber
On May 30, 2018, Iowa Governor Kim Reynolds signed Senate File 2417 (SF 2417), which clarifies what kinds of companies are required to collect and remit sales tax, due to the U.S. Supreme Court overruling of Quill Corp v. North Dakota. The thresholds included in the Iowa state tax reform bill applies to companies that sell $100,000 or more of products and services, or make 200 or more separate sales transactions within the state of Iowa annually.
Portions of the bill that expand sales tax to remote sellers are effective January 1, 2019. Remote sellers that meet these thresholds in the preceding year should begin collecting Iowa sales tax on January, 1, 2019. The Iowa Department of Revenue will not seek to impose sales tax liability for periods prior to the effective date.
Per the Iowa Department of Revenue, companies required to collect sales tax in Iowa under SF 2417 must be registered online through the Streamlines Sales Tax Registration System or directly with the Iowa Department of Revenue through the Business Tax Registration System.
Other states have enacted similar economic nexus filing requirements. Any company selling across state lines should ensure they are familiar with filing requirements. Questions should be directed to a qualified professional services firm.
The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting, investment, or tax advice or opinion provided by CliftonLarsonAllen LLP (CliftonLarsonAllen) to the reader. Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor. For more information, visit CLAconnect.com.