Notice of Intended Action
Administration of marijuana and controlled substance stamp tax, adopt ch 240; rescind ch 269
ARC 8738C
REVENUE DEPARTMENT[701]
Notice of Intended Action
Proposing rulemaking related to administration of marijuana and controlled substance stamp tax and providing an opportunity for public comment
The Revenue Department hereby proposes to adopt new Chapter 240, “Administration of Marijuana and Controlled Substance Stamp Tax,” and to rescind Chapter 269, “Administration of Marijuana and Controlled Substances Stamp Tax,” Iowa Administrative Code.
Legal Authority for Rulemaking
This rulemaking is proposed under the authority provided in Iowa Code section 453B.2.
State or Federal Law Implemented
This rulemaking implements, in whole or in part, Iowa Code chapter 453B.
Purpose and Summary
The purpose of the proposed rulemaking is to adopt a new Chapter 240 and rescind and reserve Chapter 269. Chapter 269 contains rules on the Department’s interpretation of Iowa Code chapter 453B on the application and imposition of the excise tax on unlawful dealing in certain substances. The Department determined these rules aid the public’s understanding on this topic. However, the Legislature’s recent passage of 2024 Iowa Acts, Senate File 345 and House File 2677, on the regulation of devices and vapor products, required, and in the case of House File 2677, mandated, the adoption of new administrative rules. The Department has determined that the current placement of the administrative rules on cigarette and tobacco-related and adjacent topics does not allow for these new forthcoming chapters of rules to be placed near the others, hindering the public’s accessibility to these rules. Further, the Department determined that for ease of use and accessibility for the public, the rules on this excise tax should be placed close to the rules on the cigarette- and tobacco-related excise taxes.
Therefore, the Department proposes readopting and moving the rules on the administration of the excise tax on marijuana and controlled substance stamp tax into Chapter 240, which was previously reserved. The Department proposes revisions to the text of the rules for better organization and clarification and to remove portions of the rules that the Department determined are unnecessary, obsolete, or duplicative of statutory language as required by Executive Order 10.
The Administrative Rules Coordinator provided preclearance for publication of this Notice of Intended Action on December 10, 2024.
Regulatory Analysis
A Regulatory Analysis for this rulemaking was published in the Iowa Administrative Bulletin on November 13, 2024. A public hearing was held on the following date(s):
●December 4, 2024
No public comments on the Regulatory Analysis were received at the hearing or in writing. No changes have been made to the text since publication of the Regulatory Analysis.
Fiscal Impact
This rulemaking has no fiscal impact to the State of Iowa.
Jobs Impact
After analysis and review of this rulemaking, no impact on jobs has been found.
Waivers
Any person who believes that the application of the discretionary provisions of this rulemaking would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 701—7.28(17A).
Public Comment
Any interested person may submit written or oral comments concerning this proposed rulemaking, which must be received by the Department no later than 4:30 p.m. on February 11, 2025. Comments should be directed to:
|
Matt Bishop |
Public Hearing
Public hearings at which persons may present their views orally or in writing will be held as follows:
|
February 11, 2025 |
Via videoconference call |
|
February 12, 2025 |
Via videoconference call |
Persons who wish to make oral comments at a public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rulemaking.
Any persons who intend to attend a public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Department and advise of specific needs.
Review by Administrative Rules Review Committee
The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rulemaking by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rulemaking at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).
The following rulemaking action is proposed:
ITEM 1.Adopt the following new701—Chapter 240:
CHAPTER 240
ADMINISTRATION OF MARIJUANA AND
CONTROLLED SUBSTANCES STAMP TAX
701—240.1(453B) Marijuana and controlled substances stamp tax.
240.1(1) Definitions. For purposes of this chapter, words and terms have the same meanings as defined in Iowa Code section 453B.1.
240.1(2) Purchases of stamps.
a.Location. Stamps that are capable of being affixed to taxable substances are offered for sale to members of the public by the department during normal business hours at the rates set in Iowa Code section 453B.7. The stamps are sold at the Hoover State Office Building, First Floor, Des Moines, Iowa, and at other locations as may be designated by the director or may be purchased by mail.
b.Payment. Payment for stamps is accepted in the form of cash, cashier’s check, or money order. Personal checks are not accepted.
c.Minimum purchase. The stamps are issued in the denominations requested by the purchaser so long as the minimum purchase price set in Iowa Code section 453B.8 is met. Also, the denomination of individual stamps cannot be less than the price for ten dosage units, multiples of ten dosage units, one whole gram, or multiples of one gram even if the stamp will be affixed to a package containing less than ten dosage units or multiples thereof, or only a portion of one gram or multiples thereof.
240.1(3) Types of stamps. Four different stamps are offered for sale:
a.Stamp for a substance consisting of or containing processed marijuana,
b.Stamp for taxable substances other than marijuana that are sold by weight,
c.Stamp for taxable substances other than marijuana that are not sold by weight, and
d.Stamp for each unprocessed marijuana plant.
240.1(4) Validity. The stamps are valid for a period of six months from the date of issuance. Stamps contain a statement that the stamps expire after six months from the date of issue. A stamp is “unused” and expires if it has not been affixed to taxable substances within six months of the date of issue.
240.1(5) Identification not required. Persons purchasing stamps are not required to provide identification, such as their name or address, when purchasing stamps.
701—240.2(453B) Refunds pertaining to unused stamps.
240.2(1) Refund date. At any time up to 30 days after the expiration date as indicated on the stamp, any unused stamp may be returned to the department and a refund requested in accordance with Iowa Code section 453B.14 and these rules.
240.2(2) Refund information.
a.Persons seeking a refund for an unused stamp must provide a name in which a refund can be made. However, refund information is confidential under Iowa Code section 453B.10.
b.If granted, the refund in the form of a warrant may, at the request of the refund claimant, either be picked up in person from the department at the Hoover State Office Building, Des Moines, Iowa, during normal business hours, or sent by mail to an address designated by the refund claimant.
These rules are intended to implement Iowa Code chapter 453B.
ITEM 2.Rescind and reserve 701—Chapter 269.
Revenue Department
- 1305 E Walnut St
- Des Moines, IA 50319
- (515) 281-8450
- Visit Website
- Agency Chapters
- Agency Rules
- RSS
Closed For Comments
This notice is now closed for comments. Collection of comments closed on 2/11/2025.
Official Document
- Administration of marijuana and controlled substance stamp tax, adopt ch 240; rescind ch 269
- Published on 1/22/2025
- 62 Views , 0 Comments
- Notice of Intended Action
The official published PDF of this document is available from the Iowa General Assembly’s Administrative Rules page.
View the Iowa Administrative Bulletin for 1/22/2025.
Administrative Rule References
The following administrative rule references were added to this document. You may click a reference to view related notices.
Rule 701-240.1 Rule 701-240.2Iowa Code References
The following Iowa code references were added to this document. You may click a reference to view related notices.
Iowa Code 453B Iowa Code 453B.1 Iowa Code 453B.10 Iowa Code 453B.14 Iowa Code 453B.7 Iowa Code 453B.8Keywords
The following keywords and tags were added to this document. You may click a keyword to view related notices.
Definitions Identification not required Location Marijuana and controlled substances stamp tax Minimum purchase Payment Purchases of stamps Refund date Refund information Refunds pertaining to unused stamps Types of stamps ValidityAbout
Welcome to the State of Iowa’s Administrative Rules Website. Public participation in the formulation of administrative rules helps our state to reform burdensome rules and prevent overregulation or red tape, encouraging efficiency, economic growth and job creation.
The purpose of this website is to allow members of the public the opportunity to comment on administrative rules in the Notice process. Members of the public have 20 days to comment on a rule from the date of publication. You may comment on all administrative rules open for comment on this website.
Division of Information Technology
Des Moines, Iowa 50309
administrative-rules@iowa.gov
https://dom.iowa.gov/information-technology
Stay Connected
© 2025 State of Iowa | Privacy Policy