It was a weird situation. UT's permits were so cheap, that some states, especially TX, were complaining about their residents using the UT permit instead of their home state permit. Some states, like NV, passed a law requiring our own residents to have a home state permit to carry at home. Some states, like NV, stopped recognizing UT permits (for various reasons). But a lot of states, especially TX, complained loud enough that UT passed a law that if your home state recognized the UT permit, you would have to have your home state permit in order to apply for or renew your UT permit.
Since IA does recognize the UT permit, you have to show proof of holding an IA permit for home purposes before you can be issued a UT permit for traveling purposes. It at least makes some sense, even though all permits for this right are wrong.
It's not an issue of UT not wanting your money, but of them recognizing that IA deserves your money before they do. If your IA permit is more expensive, or less recognized, your real beef is with them.