ARC 9044C - Iowa Administrative Rules

Adopted and Filed

Administration of marijuana and controlled substance stamp tax, adopt ch 240; rescind ch 269

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ARC 9044C

REVENUE DEPARTMENT[701]

Adopted and Filed

Rulemaking related to administration of marijuana
and controlled substance stamp tax

The Revenue Department hereby adopts new Chapter 240, “Administration of Marijuana and Controlled Substances Stamp Tax,” and rescinds Chapter 269, “Administration of Marijuana and Controlled Substances Stamp Tax,” Iowa Administrative Code.

Legal Authority for Rulemaking

This rulemaking is adopted 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 this 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 determined that the current placement of the administrative rules on cigarette and tobacco-related and adjacent topics did 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 readopted and moved 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 revised the text of the rules for better organization and clarification and removed portions of the rules that the Department determined are unnecessary, obsolete, or duplicative of statutory language as required by Executive Order 10.

Public Comment and Changes to Rulemaking

Notice of Intended Action for this rulemaking was published in the Iowa Administrative Bulletin on January 22, 2025, as ARC 8738C. A public hearing was held on the following date(s):

●February 11, 2025

●February 12, 2025

No one attended the public hearings. No public comments were received. No changes from the Notice have been made.

Adoption of Rulemaking

This rulemaking was adopted by the Department on February 27, 2025.

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).

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).

Effective Date

This rulemaking will become effective on April 23, 2025.

The following rulemaking action is adopted:

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.

[Filed 2/27/25, effective 4/23/25]

[Published 3/19/25]

EDITOR’S NOTE: For replacement pages for IAC, see IAC Supplement 3/19/25.