1. a. Sales tax, other than that described in paragraph “c”, shall be collected by sellers who are retailers or by their agents. Sellers or their agents shall, as far as practicable, add the sales tax, or the average equivalent thereof, to the sales price or charge, less trade-ins allowed and taken and when added such tax shall constitute a part of the sales price or charge, shall be a debt from consumer or user to seller or agent until paid, and shall be recoverable at law in the same manner as other debts.

 b. In computing the tax to be collected as the result of any transaction, the tax computation must be carried to the third decimal place. Whenever the third decimal place is greater than four, the tax must be rounded up to the next whole cent; whenever the third decimal place is four or less, the tax must be rounded downward to a whole cent. Sellers may elect to compute the tax due on transactions on an item or invoice basis. Sellers are not required to use a bracket system.
 c. The tax imposed upon those sales of motor fuel which are subject to tax and refund under chapter 452A shall be collected by the state treasurer by way of deduction from refunds otherwise allowable under that chapter. The treasurer shall transfer the amount of such deductions from the motor vehicle fuel tax fund to the special tax fund.

Terms Used In Iowa Code 423.14

  • Agent: means a person appointed by a seller to represent the seller before the member states. See Iowa Code 423.1
  • Certificate of title: means a certificate of title issued for a vehicle or for manufactured housing under chapter 321. See Iowa Code 423.1
  • Consumer: means any person who has title to or possession of tobacco products in storage, for use or other consumption in this state. See Iowa Code 453A.42
  • Department: means the department of revenue. See Iowa Code 423.1
  • following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
  • Person: means an individual, trust, estate, fiduciary, partnership, limited liability company, limited liability partnership, corporation, or any other legal entity. See Iowa Code 423.1
  • Personal property: All property that is not real property.
  • Personal property: includes but is not limited to tangible personal property and specified digital products. See Iowa Code 423.1
  • property: includes personal and real property. See Iowa Code 4.1
  • Purchase: means any transfer, exchange, or barter, conditional or otherwise, in any manner or by any means whatsoever, for a consideration. See Iowa Code 423.1
  • Purchase price: means the same as "sales price" as defined in this section. See Iowa Code 423.1
  • Retailer: includes a seller obligated to collect sales or use tax, including any person obligated to collect sales and use tax pursuant to section 423. See Iowa Code 423.1
  • Sales price: means the total amount of consideration, including cash, credit, property, and services, for which personal property or services are sold, leased, or rented, valued in money, whether received in money or otherwise, without any deduction for any of the following:
     (1) The seller's cost of the property sold. See Iowa Code 423.1
  • Sales tax: means the tax levied under subchapter II of this chapter. See Iowa Code 423.1
  • seller: includes an affiliated group of sellers using the same proprietary system. See Iowa Code 423.1
  • Services: means all acts or services rendered, furnished, or performed, other than services used in processing of tangible personal property for use in retail sales or services, for an employer who pays the wages of an employee for a valuable consideration by any person engaged in any business or occupation specifically enumerated in section 423. See Iowa Code 423.1
  • Specified digital products: means electronically transferred digital audio-visual works, digital audio works, digital books, or other digital products. See Iowa Code 423.1
  • State: means any state of the United States, the District of Columbia, and Puerto Rico. See Iowa Code 423.1
  • System: means the central electronic registration system maintained by Iowa and other states which are signatories to the agreement. See Iowa Code 423.1
  • Tangible personal property: includes electricity, water, gas, steam, and prewritten computer software. See Iowa Code 423.1
  • Use: means and includes the exercise by any person of any right or power over or access to tangible personal property or a specified digital product incident to the ownership of that property, or any right or power over or access to the product or result of a service. See Iowa Code 423.1
  • Use tax: means the tax levied under subchapter III of this chapter. See Iowa Code 423.1
  • User: means the immediate recipient of the personal property or services who is entitled to exercise a right or power over or access to the personal property, or the product or result of such services. See Iowa Code 423.1
 2. Use tax shall be collected in the following manner:

 a. The tax upon the use of all vehicles subject only to the issuance of a certificate of title shall be collected by the county treasurer or the state department of transportation pursuant to section 423.26, subsection 1. The county treasurer shall retain one dollar from each tax payment collected, to be credited to the county general fund.
 b. The tax upon the use of all tangible personal property and specified digital products other than that enumerated in paragraph “a”, which is sold by a seller who is a retailer or its agent that is not otherwise required to collect sales tax under the provisions of this chapter, may be collected by the retailer or agent and remitted to the department, pursuant to the provisions of paragraph “e”, and sections 423.24, 423.29, 423.30, 423.31, and 423.33.
 c. The tax upon the use of all tangible personal property and specified digital products not paid pursuant to paragraphs “a” and “b” shall be paid to the department directly by any person using the property within this state, pursuant to the provisions of section 423.34.
 d. The tax imposed on the use of services enumerated in section 423.5 shall be collected, remitted, and paid to the department of revenue in the same manner as use tax on tangible personal property is collected, remitted, and paid under this subchapter.
 e. All persons obligated by paragraph “a”, “b”, or “d”, to collect use tax shall, as far as practicable, add that tax, or the average equivalent thereof, to the purchase price, less trade-ins allowed and taken, and when added the tax shall constitute a part of the purchase price. Use tax which this section requires to be collected by a retailer and any tax collected pursuant to this section by a retailer shall constitute a debt owed by the retailer to this state. Tax which must be paid directly to the department, pursuant to paragraph “c” or “d”, is to be computed and added by the consumer or user to the purchase price in the same manner as this paragraph requires a seller to compute and add the tax. The tax shall be a debt from the consumer or user to the department until paid, and shall be recoverable at law in the same manner as other debts.
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