Not tax advice. Computation tools only. Have a professional review before filing.
openaccountants/skills/iowa-sales-tax.md
iowa-sales-tax.md49 lines1.5 KB
v20State
1---
2name: iowa-sales-tax
3description: Use this skill whenever asked about Iowa sales and use tax. Trigger on phrases like "Iowa sales tax", "IA sales tax", "IDR", "Iowa Code §423", "Iowa LOST". ALWAYS load us-sales-tax first.
4version: 2.0
5---
6 
7# Iowa Sales and Use Tax Skill v2.0
8 
9## Section 1 -- Quick reference
10 
11| Field | Value |
12|---|---|
13| Jurisdiction | Iowa |
14| State rate | 6.00% |
15| Local option (LOST) | Up to 1.00% (county voter-approved) |
16| Maximum combined rate | 7.00% |
17| Sourcing | Destination-based (SST) |
18| Economic nexus | $100,000 in gross revenue |
19| Tax authority | Iowa Department of Revenue (IDR) |
20| Portal | https://tax.iowa.gov |
21| SST member | Yes -- Full Member |
22| Skill version | 2.0 |
23 
24## Section 3 -- Transaction pattern library
25 
26| Pattern | Taxable? | Notes |
27|---|---|---|
28| General TPP | TAXABLE 6% + LOST | |
29| Clothing | TAXABLE | No exemption |
30| Grocery food | EXEMPT | |
31| Prepared food | TAXABLE | |
32| SaaS | TAXABLE | Iowa taxes SaaS and specified digital products |
33| Canned software | TAXABLE | |
34| Digital goods (specified) | TAXABLE | |
35| Professional services | NOT TAXABLE | |
36| Manufacturing equipment | EXEMPT | |
37| Prescription drugs | EXEMPT | |
38| Resale | EXEMPT | |
39 
40## Section 10 -- Prohibitions
41 
42- NEVER forget the Local Option Sales Tax (LOST) which adds up to 1%.
43- NEVER treat SaaS as nontaxable in Iowa -- Iowa taxes it.
44- NEVER compute any number.
45 
46## Disclaimer
47 
48Informational only. Review by qualified professional required before filing.
49 

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Use this skill whenever asked about Iowa sales and use tax. Trigger on phrases like "Iowa sales tax", "IA sales tax", "IDR", "Iowa Code §423", "Iowa LOST". ALWAYS load us-sales-tax first.

US-IOty-2025

US-IO skill: