Iowa Admin. Code r. 701-231.6 - [Effective 4/23/2025] Banks authorized to sell stamps-requirements-restrictions
(1)
Authorization. The director has the discretion to allow the
sale or distribution of stamps through authorized banks as defined in Iowa Code
section 524.103. The authorization of a
bank to sell stamps is not a mandatory direction but may be utilized by the
director to enhance the efficiency of the tax stamp distribution system. The
director will consider the following nonexhaustive list of factors to determine
whether or not to authorize a bank to sell stamps:
a. Geographical location in relation to
distributors or manufacturers requesting alternative purchase
locations,
b. The anticipated
volume of stamps to be purchased by the requesting distributors or
manufacturers,
c. Access to
transportation systems, and
d.
Prior experience with the bank.
(2)
Sale of stamps. An
authorized bank may sell cigarette stamps only to distributors or manufacturers
holding valid permits who have "elected" (as per subrule 231.5(2)) to purchase
stamps from that bank. The department shall furnish each bank with a list of
all such distributors or manufacturers who have so elected, and the bank shall
not sell stamps to persons not on the list. The bank must receive payment in
full, less the discount, before selling stamps. A bank is not authorized to
accept credit memorandums from distributors or manufacturers.
(3)
Stamp inventory. Each
bank shall keep an adequate inventory of stamps on hand to supply distributors
or manufacturers assigned to said bank for at least six weeks. Stamps will be
shipped freight prepaid to the bank from the department or from the supplier of
the stamps. The supplier of the stamps shall advise the department at once by
mail of a shipment to a bank and the bank shall advise the department at once
by mail of the receipt of the stamps. Each bank shall store stamps in a secure
vault.
(4)
Reports and
remittances. Each bank authorized to sell stamps shall forward to the
department the invoices, requisitions, and remittances for stamps sold on a
daily basis. Each bank shall forward to the department, on the first working
day of each month, an inventory report that shall minimally include as to the
prior month: the quantity of stamps on hand at the beginning of the month, the
quantity of stamps received during the month, the quantity of stamps sold as to
each distributor or manufacturer, the quantity of stamps on hand at the end of
the month and the signature of the person responsible for the stamps.
(5)
Audit. For the purpose
of auditing for the end of the fiscal year, no bank shall sell cigarette stamps
on the days from June 25 through June 30. With or without notice, the
department or a representative designated by the department may take an
inventory of stamps and audit stamp sales.
(6)
Records. Each bank must
retain all records of inventory, stamp receipts, and stamp sales for a period
of three years.
(7)
Termination of authorization. The director may terminate the
authorization of a bank to sell stamps if the bank has failed to comply with
the provisions of this rule or Iowa Code chapter 453A or if the director deems
it desirable for the efficient distribution of stamps.
a. Notice of termination shall be sent to the
bank by certified mail. The bank may appeal the termination determination by
filing an appeal pursuant to 701-Chapter 7 within 30 days of notice of
termination.
b. A bank may
voluntarily terminate the sale of stamps by giving the department 90 days'
written notice.
c. Upon
termination, the bank must immediately return all stamps and present a final
accounting, along with any remittances, to the department.
This rule is intended to implement Iowa Code sections 453A.8, 453A.12, and 453A.25.
Notes
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