Iowa Admin. Code r. 701-213.16

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

Rule 701-213.16 - Repossessed goods

(1)Sale subject to tax. When tangible personal property which has been repossessed either by the original seller or by a finance company is resold to final users or consumers, the sales price from those sales is subject to tax.

(2)Bad debts. A retailer repossessing previously sold merchandise shall be entitled to claim a credit on tax paid for bad debts in the same fashion as any other retailer that has paid tax to the department upon a sales price which ultimately constitutes a bad debt.

This rule is intended to implement Iowa Code sections 423.2(1) and 423.5(1).

Iowa Admin. Code r. 701-213.16

Amended by IAB September 22, 2021/Volume XLIV, Number 6, effective 10/27/2021