Iowa Code 602.6703 – Declaratory judgment to adjudicate constitutional nexus issues regarding taxation

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Terms Used In Iowa Code 602.6703

• following : when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
• Jurisdiction : (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
• state : when applied to the different parts of the United States, includes the District of Columbia and the territories, and the words "United States" may include the said district and territories. See Iowa Code 4.1

602.6703 Declaratory judgment to adjudicate constitutional nexus issues regarding taxation.
1. District courts have original jurisdiction over civil actions seeking declaratory judgment when both of the following apply:
a. The party seeking declaratory relief is a business that is any of the following: (1) Organized under the laws of this state .
(2) A sole proprietorship owned by a domiciliary of this state. (3) Authorized to do business in this state.
b. The responding party is a government official of another state, or political subdivision of another state, who asserts that the business in question is obliged to collect sales or use taxes for such state or political subdivision based upon conduct of the business that occurs wholly or partially within that state or political subdivision.
2. A business meeting the requirements and facing the circumstances described in subsection 1 shall be entitled to declaratory relief on the issue of whether the requirement of another state, or political subdivision of another state, that the business collect and remit sales or use taxes to that state, or political subdivision, in the factual circumstances of the business’ operations giving rise to the demand, constitutes an undue burden on interstate commerce within the meaning of the Constitution of the United States.
2005 Acts, ch 140, §68