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The Iowa Department of Revenue has submitted new proposed rules to the Iowa Legislature, available for public comment through October 11, 2022.
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Mandatory Electronic Fling of Tax Returns for Certain Taxpayers
This proposed rulemaking is intended to implement the requirement imposed by 2022 Iowa Acts, House File 2552, division II, to electronically file certain business income, fiduciary, and franchise tax returns. This rulemaking describes the proper method for filing electronic returns, provides definitions that are useful for determining whether a taxpayer has met the criteria for being subject to the mandate, and provides for exceptions to the electronic filing requirement.
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Rent Reimbursement and Property Tax Credit Program - Transition Period
House File 368, enacted during 2021 Legislative Session, transferred the administration of the rent reimbursement program under Iowa Code chapter 425, subchapter II, from the Iowa Department of Revenue (IDR) to the Iowa Department of Human Services (DHS). This transition is scheduled to occur on January 1, 2023. This proposed rulemaking addresses three transition issues that IDR and DHS have identified. First, it clarifies that appeals of denials or reductions of rent reimbursement claims shall be filed with and administered by the agency that made the denial or reduction. Second, it addresses claims received by IDR on or after December 1, 2022, requiring that those claims be forwarded to DHS for processing and allowance or disallowance. Finally, it clarifies that all rent reimbursement claims made on and after January 1, 2023, including late or amended claims, should be filed with DHS for determination of eligibility for the credit.
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Withholding Filing and Penalty
This proposed rulemaking is intended to implement statutory changes to the penalty imposed on payers of withholding who fail to file income statements with the Department. Payers of withholding will now be penalized $500 for each instance of willful failure to file an income statement with the Department. This rulemaking implements a statutory change that eliminates the requirement that payers of withholding submit an annual summary of withholding payments. It eliminates references to responsible parties and amends other provisions related to withholding registration to better conform with how withholding registration is administered by the Department. Finally, this rulemaking amends language regarding filing of returns to better conform with how withholding filings are administered by the Department and to make the rules easier to read.
The Department previously submitted the following proposed rule to the Iowa Legislature. The following rule has been adopted and filed, effective October 26, 2022.
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Application of Two-Tier Assessment Limitation
This rulemaking addresses the application of the first of two assessment limitation tiers for commercial, industrial, and railway property assessed under Iowa Code chapter 434. 2022 Iowa Acts, House File 2552, division XI, repeals the Business Property Tax Credit under Iowa Code chapter 426C on July 1, 2024, and creates a two-tier assessment limitation for properties classified as commercial, industrial, and railway property assessed under Iowa Code chapter 434 for assessment years beginning on or after January 1, 2022. The first tier of assessment limitation provides that the first $150,000 of value for properties classified as commercial, industrial, and railway property assessed under Iowa Code chapter 434 shall receive the assessment limitation percentage applicable to residential property. For the second tier, any value in excess of $150,000 for commercial, industrial, and railway properties assessed under Iowa Code chapter 434 shall receive a 90 percent assessment limitation. This rulemaking requires county auditors to apply the first tier of the assessment limitation proportionately by percentage of total value among the parcels for property units that are comprised of multiple parcels.
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The mission of the Iowa Department of Revenue is to serve Iowans and support state government by collecting all taxes required by law, but no more.
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