1.

 Liability of purchaser and retailer.
 a. If a purchaser fails to pay sales tax to the retailer required to collect the tax, then in addition to all of the rights, obligations, and remedies provided, a use tax is payable by the purchaser directly to the department, and sections 423.31, 423.37, 423.39, 423.40, 423.41, and 423.42 apply to the purchaser.
 b. For failure to pay the sales or use tax as described in paragraph “a”, the retailer and purchaser are jointly liable, unless the circumstances described in section 29C.24, subsection 3, paragraph “a”, subparagraph (2), section 423.34A, or section 423.45, subsection 4, paragraph “b” or “e”, or subsection 5, paragraph “c” or “e”, are applicable.
 c. If the retailer fails to collect sales tax at the time of the transaction, the retailer shall thereafter remit the applicable sales tax, or the purchaser thereafter shall remit the applicable use tax. If the purchaser remits all applicable use tax, the retailer remains liable for any local sales and services tax under chapter 423B that the retailer failed to collect.
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Terms Used In Iowa Code 423.33

  • Affiliate: means an entity that directly or indirectly controls, is controlled with or by, or is under common control with another entity. See Iowa Code 423.3
  • Agent: means a person appointed by a seller to represent the seller before the member states. See Iowa Code 423.1
  • Business: means any trade, occupation, activity, or enterprise engaged in for the purpose of selling or distributing tobacco products in this state. See Iowa Code 453A.42
  • Business: means those businesses conducted for profit, but excludes professions and occupations and nonprofit organizations. See Iowa Code 423.3
  • Casual sales: means :
     (1) Sales of tangible personal property or specified digital products, or the furnishing of services, of a nonrecurring nature, by the owner, if the seller, at the time of the sale, is not engaged for profit in the business of selling tangible personal property, specified digital products, or services taxed under section 423. See Iowa Code 423.3
  • Control: means any of the following:
     (a) In the case of a United States corporation, the ownership, directly or indirectly, of fifty percent or more of the voting power to elect directors. See Iowa Code 423.3
  • Department: means the department of revenue. See Iowa Code 423.1
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Person: means any individual, firm, association, partnership, joint stock company, joint adventure, corporation, trustee, agency, or receiver, or any legal representative of any of the foregoing. See Iowa Code 453A.42
  • 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
  • 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
  • Retailer: means any person engaged in the business of selling tobacco, tobacco products, alternative nicotine products, or vapor products to ultimate consumers. See Iowa Code 453A.42
  • 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 tax: means the tax levied under subchapter II of this chapter. 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
  • Use: means the exercise of any right or power incidental to the ownership of tobacco products. See Iowa Code 453A.42
  • 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
 2.

 Immediate successor liability for sales or use tax.

 If a retailer sells the retailer’s business or stock of goods or quits the business, the retailer shall prepare a final return and pay all sales or use tax due within the time required by law. The immediate successor to the retailer, if any, shall withhold a sufficient portion of the purchase price, in money or money’s worth, to pay the amount of delinquent tax, interest, or penalty due and unpaid. If the immediate successor of the business or stock of goods intentionally fails to withhold the amount due from the purchase price as provided in this subsection, the immediate successor is personally liable for the payment of delinquent taxes, interest, and penalty accrued and unpaid on account of the operation of the business by the immediate former retailer, except when the purchase is made in good faith as provided in section 421.28. However, a person foreclosing on a valid security interest or retaking possession of premises under a valid lease is not an “immediate successor” for purposes of this section. The department may waive the liability of the immediate successor under this subsection if the immediate successor exercised good faith in establishing the amount of the previous liability.

 3.

 Event sponsor’s liability for sales or use tax.

 A person sponsoring a flea market or a craft, antique, coin, or stamp show or similar event shall obtain from every retailer selling tangible personal property, specified digital products, or taxable services at the event proof that the retailer possesses a valid sales or use tax permit or secure from the retailer a statement, taken in good faith, that tangible personal property, specified digital products, or services offered for sale are not subject to sales tax. Failure to do so renders a sponsor of the event liable for payment of any sales tax, interest, and penalty due and owing from any retailer selling property or services at the event. Sections 423.31, 423.37, 423.39, 423.40, 423.41, and 423.42 apply to the sponsors. For purposes of this subsection, a “person sponsoring a flea market or a craft, antique, coin, or stamp show or similar event” does not include a marketplace facilitator as defined in section 423.14A, subsection 1, an organization which sponsors an event determined to qualify as an event involving casual sales pursuant to section 423.3, subsection 39, or the state fair or a fair as defined in section 174.1.

 4.

 Liability of affiliates.
 a. Notwithstanding any other provision of law to the contrary, if any retailer required to collect and remit sales and use tax pursuant to sections 423.14, 423.14A, and 423.29, or any other provision of this chapter, fails to do so, all affiliates that directly, indirectly, or constructively control the retailer shall be jointly and severally liable for any tax, penalty, and interest under this chapter, regardless of whether the affiliate is a retailer.
 b. Pursuant to paragraph “a”, the department may elect to assess the full amount of any tax, penalty, and interest against the retailer, an affiliate of the retailer described in paragraph “a”, or any combination of the retailer and the retailer’s affiliates described in paragraph “a”.
 c. Notwithstanding any other provision of law to the contrary, the department has the discretion to deem an affiliate of a retailer an agent or alter ego of that retailer.
 d. Notwithstanding any other provision of law to the contrary, the department has the discretion to disregard or look through any organizational structure of an enterprise in order to assess and collect any tax, penalty, and interest against an affiliate that is acting to benefit an affiliate or an enterprise of which the affiliate is a part.
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