Iowa Department of Revenue urges retailers to use GovConnectIowa for sales, fuel and tobacco tax filings

Megan Peasley, Iowa SourceLink program coordinator at the University of Northern Iowa's John Pappajohn Entrepreneurial Center, opened a webinar in which Matt Bishop, Policy Director for Sales and Excise Taxes at the Iowa Department of Revenue, outlined registration and filing requirements for retailers that sell motor fuel, cigarettes, tobacco, nicotine and vapor products.

Bishop said retailers should create a GovConnectIowa account, register required permits and file returns electronically. “Get familiar with GovConnect IO. It's a tremendous resource for doing all of your filing, remitting, registration needs,” he said.

The department reiterated that statewide sales tax in Iowa is 6%, and most localities add a 1% local option sales tax where applicable. Sales tax is collected from the final consumer and remitted by the retailer; use tax (6%) applies when a seller does not charge Iowa sales tax. Bishop emphasized that a sales-and-use tax permit is required before making taxable sales: “It is illegal to make taxable sales without a permit.”

Bishop explained common exemptions (for example, many food ingredients and packaging containers) and the rules for purchases for resale, which allow retailers to buy inventory without paying sales tax at the time of purchase. He also noted that fuel sold at pumps is not subject to sales tax if the applicable fuel tax has been imposed and paid.

The webinar closed with links and contacts: revenue.iowa.gov and the department taxpayer-services email (idr@iowa.gov). Peasley noted the recording and slide materials would be shared after the event and reminded attendees that IASource Link does not issue continuing-education certificates for the session.

Ending: The department encouraged retailers who cannot use GovConnectIowa to contact them for alternate filing arrangements and to subscribe to updates on revenue.iowa.gov for changes and tutorials.