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). The Department has received many questions from taxpayers about who is subject to WET. Detailed information, including a webinar, about WET can be found on our website at https://tax.iowa.gov/WET.

Only “water utilities” are required to collect WET. For purposes of WET, a “water utility” is anyone providing water to the public through a piped distribution system for compensation. Simply owning a well or other water supply does not necessarily mean you are subject to WET. In addition, taxpayers who only sell water through interior plumbing, as opposed to also owning a well or water supply, are not required to collect WET.

For example, a restaurant may have an on-site well that pipes water into the restaurant. If the owner of the well is not charging the owner of the restaurant for the water service, then there is no sale of water service and the well owner does not have to collect WET. If the well owner charges the restaurant for the water service, then the sale is subject to WET and the well owner would collect WET from the restaurant owner.

The Iowa Department of Revenue will present a no-cost webinar on June 6 at 1 p.m., to help Iowans understand and prepare for the state's Water Service Excise Tax (WET).

Earlier this year, the Iowa legislature passed a new law, SF 512, effective July 1, 2018, which creates the tax.  Prior to the enactment of this law, the sale of water was subject to the 6% state sales tax. The WET exempts the sale of water service from state sales tax, but imposes a 6% excise tax on the sale of water service. This webinar will cover all of the basics of the tax, how to register for a WET permit, when to file returns and deposits, and common Q&A's.  

For more details or to register, please visit http://www.iasourcelink.com/resources/business-webinars/iowa-tax-webinars.

The Iowa Department of Revenue has partnered with the Center for Business Growth and Innovation at the University of Northern Iowa to provide free tax webinars on IASourceLink. The presenters for this webinar are:

• Joe Fraioli, Attorney, Iowa Department of Revenue
• Marsha Peterson, Tax Management Division, Iowa Department of Revenue

Mark your calendars for the IAMU Water Distribution & Leak Detection/Line Locating Workshops.  The workshops will take place May 23 - 24 at the IAMU Training and Office Complex.

Water Distribution Training topics will include:

• Fire hydrant maintenance
• Water main tapping / HydraStop
• Water main installation / repair & fittings

Water Leak Detection / Line Locating topics will include:

• Water leak detection
• Line locating
• Trenching & shoring
•  Fittings

0.6 CEUs each day for Water Distribution.

Cost:

Early Registration (on or before May 18)

• IAMU Members - $65/day or $115 both days
• Non-Members - $105/day or $190 both days

Late/At-the-Door Registration

• IAMU Members - $75/day or $135 both days
• Non-Members - $115/day or $210 both days

Registration is open.  For more information about the workshops, brochure, and online registration, click HERE.