Iowa Corporate Tax – It’s Not “Finger-Licking Good”

April 6, 2012

Roger McEowen

“We’re Number One, We’re Number One!” While that doesn’t apply to the Cyclones, Panthers, Bulldogs or the Hawkeyes, it does apply to Iowa’s corporate income tax – it’s the highest stated rate in the nation. Now, the Iowa Supreme Court has held that the tax applies to royalties received by a company that has no assets or employees in Iowa. As a result of the Court’s decision, the Iowa Department of Revenue (IDOR) has taken an even more aggressive stance against out-of-state businesses.

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