Iowa Admin. Code r. 701-288.11

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

Rule 701-288.11 - Leased departments

When a permit holder leases a part of the premises where the permit holder's retail business is conducted, the lessor shall immediately notify the department and supply the following information:

(1) name and home office address of the lessee;

(2) type of merchandise sold by the lessee or service performed;

(3) date when the lessee began making sales or performing services at retail in Iowa on the leased premises; and

(4) whether the lessee has secured a permit to account directly to the department for tax due or if the lessee's sales will be accounted for in the lessor's tax return. Upon request, the department shall furnish a form to the lessor on which to report this information.

If the lessor fails to notify the department that a part of the premises has been leased and does not furnish the requested information, the lessor shall be responsible for tax due as a result of sales by the lessee, unless the lessee has properly remitted the tax due.

The lessor who has leased a part of the premises shall report to the department the names and addresses of all lessees. If the lessor is accounting for the lessee's sales, the lessor shall, after the name of each lessee, show the amount of net taxable sales made by the lessee and which net taxable sales are included in the lessor's return. If the lessee is reporting the tax directly to the department, the lessor shall show the permit number of the lessee.

When the lessee has terminated selling activities, the lessor shall immediately notify the department. This rule is intended to implement Iowa Code section 423.25.

Iowa Admin. Code r. 701-288.11

ARC 5915C, IAB 9/22/21, effective 10/27/21; Editorial change: IAC Supplement 11/2/22