- Retail sales of tangible personal property delivered into Iowa
- Both taxable and exempt sales count toward the threshold
- Specified digital products and services delivered into Iowa
- Sales made through a registered marketplace facilitator collecting and remitting Iowa tax on the business's behalf
- Wholesale sales with a valid exemption certificate
Affiliate nexus
Iowa establishes solicitor nexus under Iowa Code § 423.14A when a remote seller enters into agreements with Iowa residents who refer customers to the seller, typically through web links or similar referral arrangements, in exchange for a commission or other consideration. When such agreements exist, Iowa presumes nexus for the remote seller.
A safe harbor applies: the solicitor nexus presumption does not apply if the gross revenue from Iowa sales referred by those Iowa-resident solicitors is $10,000 or less for both the current and prior calendar year.
Separately, a remote seller that licenses trade names or trademarks to an Iowa-based affiliate can independently establish physical nexus in Iowa through that licensing arrangement.
Physical nexus
Physical nexus in Iowa arises from a broad range of in-state connections. Under Iowa Code § 423.1(47) and Iowa Administrative Rule 701-30.1, the following activities and conditions create nexus:
Maintaining any office, distribution house, sales house, warehouse, or other place of business in Iowa, whether operated directly or through a subsidiary, creates nexus. Having an employee, agent, or representative present in Iowa, on a permanent or temporary basis, including independent contractors and brokers who solicit sales, similarly establishes nexus.
Owning, leasing, or maintaining property in Iowa creates nexus, including software or intangible property with an Iowa situs that is used to make or facilitate a retail sale. Licensing trade names or trademarks to Iowa-based businesses is itself a nexus-creating activity.
Additional triggers under Rule 701-30.1 include installing property in Iowa that the seller sold, performing construction or service work in Iowa, and regularly delivering products into Iowa using the seller's own vehicles.
Trailing nexus
Iowa's statutes and Iowa Department of Revenue guidance do not explicitly define a formal trailing nexus period. The current or prior calendar year evaluation structure creates an implicit carry-forward: a business that meets the $100,000 threshold in one calendar year remains obligated to collect and remit Iowa sales tax throughout the following calendar year, even if sales fall below the threshold during that subsequent year.
