Iowa Administrative Code Title 701 — Department of Revenue

Iowa Admin. Code r. 701—221.2(423) — Demurrage charges

Charges for returning tangible personal property after the agreed- upon date that are true demurrage charges supported by a written agreement do not constitute taxable sales, and the charges are exempt from tax.

Last amended: This rule is intended to implement Iowa Code sections 423.1(51) and 423.2. [ARC 8163C, IAB 7/24/24, effective 8/28/24]

Source: official text