Iowa Admin. Code r. 701-204.1

Current through Regsiter Vol. 46, No. 26, June 12, 2024

Rule 701-204.1 - Allowing use of the lowest tax rate within a database area and use of the tax rate for a five-digit area when a nine-digit zip code cannot be used

Any database maintained by the department that displays tax rates and tax jurisdictional boundaries based on either a five-digit or nine-digit zip code system shall, if an area encompassing one zip code has two or more rates of tax, provide to retailers a means of identifying and applying the lowest rate within the area for use in computing tax due. If a nine-digit zip code designation is not available for a street address or if a seller is unable to determine the nine-digit zip code designation of a purchaser after exercising due diligence to determine the designation, the seller may apply the lowest rate for the five-digit zip code area.

This rule is intended to implement Iowa Code section 423.55.

Renumbered from 701-240.1 by IAB September 7, 2022/Volume XLV, Number 5, effective 10/12/2022

Amended by IAB February 7, 2024/Volume XLVI, Number 16, effective 3/13/2024