Iowa Admin. Code r. 701-231.9 - [Effective 4/23/2025] Refund of tax-unused and destroyed stamps
(1)
Refunds of unused stamps and
destroyed stamps.
a. Refunds shall
be issued for unused stamps that are returned to the department for any reason
by a person entitled to receive a refund. This includes:
(1) Unused stamps unaffixed at the close of
the business day next preceding the effective date of a decrease in the tax
rate that are in excess of the unstamped cigarette inventory on hand as of that
date.
(2) Stamps that are recalled
by the director for purposes of effectuating a change of design of the
stamps.
(3) Stamps that have been
lost through destruction, since destroyed stamps have not been used. For
purposes of this rule, destruction means destruction by fire, flood, other act
of God as defined in 701-subrule 10.7(1), or other destruction not reasonably
anticipated or foreseen and outside the control of the person seeking the
refund. The claim for refund must be supported by proof of the fact of the loss
and proof of the quantity of the loss. The claim must be filed within 30 days
of the loss.
b. Refunds
will not be issued for stamps that are lost (misplaced) or stolen because it is
the distributor's or manufacturer's responsibility to maintain proper control
over cigarette tax stamps.
c. Banks
that are authorized to sell stamps or meter settings are not authorized to
issue a refund; the stamps must be returned to the department and a refund will
be issued only by the department.
(2)
Return of used stamps.
a. Refunds shall be issued for stamps that
have been affixed to cigarettes that have become unfit for use or consumption
or unsaleable. This refund is available to any permitted distributor or
manufacturer upon proof that the cigarettes were returned to the manufacturer
of the cigarettes.
b. The proof
required shall be an affidavit from the distributor setting forth to whom the
cigarettes were returned and verifying that cigarette stamps had been affixed
thereto. An affidavit from the manufacturer to which the cigarettes were
returned verifying the information must also be included.
(3)
Cigarettes that have been
destroyed.
a. The tax shall be
returned on cigarettes that have been destroyed after the tax stamps have been
affixed to the person stamping the cigarettes. No refund is allowed for lost or
stolen cigarettes.
b. The person
claiming the loss must be able to prove the fact of the loss and quantity of
the loss. The claim, on the form required by the department and accompanied by
proof of the loss and proof of the quantity of the loss, must be filed with the
department no later than 30 days following the date the loss
occurred.
c. The amount of the
refund shall be the face value of the stamps less the applicable discount
allowed purchasers of tax stamps.
(4)
No credit in lieu of a
refund. There are no statutory provisions to allow a credit in lieu of
a refund of taxes paid for returned or destroyed cigarette stamps.
This rule is intended to implement Iowa Code section 453A.8.
Notes
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