A purchaser is relieved of liability for payment of state sales or use tax, for payment of any local option sales tax, for payment of interest, or for payment of any penalty for nonpayment of tax which nonpayment is not fraudulent, willful, or intentional, under the following circumstances:
 1. The purchaser, the purchaser’s seller or certified service provider, or the purchaser holding a direct pay permit relied on erroneous data contained in this state‘s taxability matrix completed pursuant to the agreement.

Terms Used In Iowa Code 423.34A

  • Agreement: means the streamlined sales and use tax agreement authorized by subchapter IV of this chapter to provide a mechanism for establishing and maintaining a cooperative, simplified system for the application and administration of sales and use taxes. See Iowa Code 423.1
  • Certified service provider: means an agent certified under the agreement to perform all of a seller's sales or use tax functions, other than the seller's obligation to remit tax on its own purchases. 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
  • in this state: includes but is not limited to sales sourced to this state under this chapter. See Iowa Code 423.1
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • Purchaser: is a person to whom a sale of personal property is made or to whom a service is furnished. 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
  • State: means any state of the United States, the District of Columbia, and Puerto Rico. 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
 2. The purchaser, the purchaser’s seller or certified service provider, or the purchaser holding a direct pay permit relied on erroneous data provided by the state with regard to tax rates, boundaries, or taxing jurisdiction assignments.
 3. The purchaser used a database described in section 423.52, subsection 1, or section 423.55 and relied on erroneous data about tax rates, boundaries, or taxing jurisdiction assignments contained in that database.
  Previous section
Next section  
 Chapter 423 Contents