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Iowa Department of Revenue Formally Publishes Amended WET Tax Rules for Landlords - October 25, 2018

As discussed in previous posts (see direct links below), Iowa’s new Water Excise Tax (WET) took effect on July 1, 2018. Since that time, the Iowa Department of Revenue (IDOR) has released two sets of proposed revised rules. On October 24, 2018, the IDOR formally published its Amended Rules. These published rules are consistent with the proposed revised rules that the IDOR released earlier this fall.


In short, the Amended Rules provide that manufactured housing communities and apartment complexes who do not charge their residents a flat water fee, do not charge their residents based upon their actual water usage, and do not offer comparable lots/units at a lower price that do not have access to water service, are not furnishing water for compensation and, thus, are not subject to WET. This principle remains true regardless of whether the landlord purchases its water from a water utility or has its own water well.


Conversely, the Amended Rules provide that if a manufactured housing community or apartment owner separately bills and charges its tenants for water--either on a flat fee basis or a usage/metered basis--then such landlord is a water utility and must collect and remit the 6% WET tax on its monthly water charges.


These published Amended Rules should be formally adopted and enacted sometime later this year. Davis Brown will keep you posted.


Please contact Jodie McDougal or your attorney for further information on WET.


Previous information regarding WET:



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