Check Receipts in Johnson County, Iowa
- Sales Tax Rate Changes
- Aug 8, 2013 | Gail Cole
If you've shopped recently in Johnson County, Iowa, you may want to check your receipts. The rate of sales tax in many Johnson County municipalities decreased by 1% on July 1, 2013; however, more than one business has reportedly failed to adjust their sales tax collections to reflect the rate change.
The extra 1% local option tax sales tax (LOST) was approved by voters to help fund post-flood projects. It took effect in the following localities on July 1, 2009:
- Iowa City,
- Lone Tree,
- Tiffin, and
- University Heights.
The supplemental tax expired on June 30 of this year.
A matter of principle
Sue Ballantyne, who lives in Solon, claims she has been charged the extra penny several times during the last month. She says she's bringing this issue to the public eye not so much to regain the pennies, but as a matter of principle: "It's the principle of the thing, because this tax was sold to us as a temporary thing."
According to Ballantyne, most businesses have been happy to correct the mistake once it is brought to their attention. In most cases, the LOST was still charged by oversight, not ill-intent. However, she has notified Netflix of the 1% overcharge several times, to no avail. As a result, she has filed a compliant with the attorney general.
While the Iowa Department of Revenue sent out news releases and lists the rate change on its website, it is ultimately the responsibility of businesses to stay informed and comply with changes in tax rates and laws.
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