You are receiving this message as part of the Iowa Department of Revenue’s ongoing effort to educate businesses and organizations about the state’s new Water Service Excise Tax (WET).

Water utilities must separate WET from sales tax for collection and remittance to the Department beginning July 1, 2018.  However, in order to provide water utilities with time to make necessary programming changes, water utilities do not have to itemize WET on bills and receipts to customers prior to January 1, 2019. Beginning on January 1, 2019, WET must be separately itemized and stated on all bills and receipts, and must be identified separately from any other taxes collected, if any. The Department will not monitor how water utilities decide to separately collect and remit WET prior to January 1, 2019.

Additional information about the Water Service Excise Tax is available on our website.