Iowa Admin. Code r. 701-210.4

Current through Register Vol. 47, No. 11, December 11, 2024

Rule 701-210.4 - Property furnished without charge by employers to employees

When an employer furnishes tangible personal property, including meals, or specified digital products to employees without charge or uses merchandise for gifts or consumption, the cost to the employer of the tangible personal property or specified digital products shall be subject to sales tax and any applicable local option sales tax and reported on the employer's return as "goods consumed" if the employer has not previously paid tax to a retailer. However, the food purchased by the employer for meals prepared for employees is not subject to tax.

This rule is intended to implement Iowa Code section 423.2.

ARC 8155C, IAB 7/24/24, effective 8/28/24