Iowa Admin. Code r. 701—253.3(423A) — Filing returns; payment of tax; penalty and interest

253.3(1) Incorporation of 701—Chapter 202. Except as otherwise stated in this chapter, the requirements of 701—Chapter 202 apply to retailers required to collect hotel and motel tax in the same manner that those requirements apply to all sellers and retailers making sales subject to state sales tax. 253.3(2) Filing returns. Retailers required to collect and remit hotel and motel tax must file returns as required in Iowa Code section 423.31. 253.3(3) Combined sales and hotel and motel tax return. a. On the monthly sales tax return, a retailer shall report the gross sales subject to the hotel and motel tax for the month, listing allowable deductions and calculating tax for the month. The information required for the computation of the hotel and motel tax liability is separate from that required for the computation of the retail sales tax liability and must be separately stated and computed even though total tax liability may be paid with a single remittance. b. The monthly returns are due on the last day of the month following the close of each calendar month during which the tax is collected. For example, the return for tax collected during April 2025 is due on or before May 31, 2025. 253.3(4) Application of partial payments. a. All payments received with the return will be applied to satisfy state sales tax and hotel and motel tax liabilities, which include penalty and interest. b. Application of partial payments received with the tax return and any subsequent partial payment received for that tax period will be applied based on a ratio formula unless properly designated by the taxpayer as provided in Iowa Code section 421.60(2)“d.” The denominator in the ratio shall be the total of the hotel and motel tax due and the state sales tax due less any monthly sales tax deposits. The numerators in the ratio formula shall be the amounts of hotel and motel tax due and the net state sales tax due. Revenue Example: Hotel owes a total of $1,000 in net state sales tax and hotel and motel tax for the month. Of the $1,000 owed, $600 is for hotel and motel tax and $400 is for state sales tax. Hotel files its monthly sales tax return accompanied by a $500 partial payment. The $500 partial payment would be applied based on the following computation: 600 × 500 = $300 Hotel and motel tax 1,000 400 × 500 = $200 State sales tax 1,000 253.3(5) Application of payments upon termination by a land use district. If a land use district terminates its local hotel and motel tax, lodging within the district becomes subject to any local hotel and motel tax imposed by a city or county within the corporate boundaries of that district on the date of termination. If a city or county imposes a local hotel and motel tax within the district, all revenues received from or moneys refunded to lodging within the district after the date on which the land use district terminates its local hotel and motel tax are treated as collected from or refunded to lodging in such city or county. If no city or county imposes a local hotel and motel tax within the district, all revenues received from or moneys refunded to lodging within the district at least 180 days after the date on which the land use district terminates its local hotel and motel tax shall be deposited in or withdrawn from the state general fund as described in Iowa Code section 423A.6(1).