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Iowa Local Sales Tax Changes


 Iowa: Local sales tax changes abound.

Numerous local option sales tax jurisdictions were created in Iowa, effective July 1, 2015. In addition, the sunset for numerous existing local sales tax rates has been extended or removed. Finally, at least one local sales tax was proposed on the November 2015 ballot.

New jurisdiction

  • Lone Tree (Johnson County): sunsets June 30, 2025
  • Solon (Johnson County): sunsets June 30, 2025
  • Hills (Johnson County): sunsets June 30, 2025
  • Swisher (Johnson County): sunsets June 30, 2025
  • West Branch (Johnson County): sunsets June 30, 2025

Extended sunset

  • West Branch (Cedar County): extended to June 30, 2025
  • Jefferson (Greene County): extended to June 30, 2027
  • Grand Junction (Greene County): extended to June 30, 2027
  • Scranton (Greene County): extended to June 30, 2027
  • Dana (Greene County): extended to June 30, 2027
  • Paton (Greene County): extended to June 30, 2027
  • Rippey (Greene County): extended to June 30, 2027
  • Greene Unincorporated Area (Greene County): extended to June 30, 2027
  • Reinbeck (Grundy County): extended to December 31, 2019

Sunset removed or no sunset

  • Delta (Keokuk County)
  • Hederick (Keokuk County)
  • Whatcheer (Keokuk County)
  • Gibson (Keokuk County)
  • Hayesville (Keokuk County)
  • Thornburg (Keokuk County)
  • Webster (Keokuk County)
  • Richland (Keokuk County)
  • South English (Keokuk County)
  • Keokuk Unincorporated Area (Keokuk County)

Additional information is available on the Iowa Department of Revenue website.

Upcoming local option sales tax

Voters in Monroe, Iowa, were asked to determine the fate of a one-cent local option sales tax on November 3, 2015. Revenue raised by the tax would fund street improvements (60%) and water and sewer improvements (40%). The tax would not apply to the following:

  • Automobiles
  • Doctor visits
  • Groceries
  • Hotel/motel
  • Lottery sales
  • Motor fuel
  • Prescription drugs
  • Real estate

According to unofficial results announced by the City of Monroe, the local option sales tax passed.

Accurate local sales tax rates for all states are available here.


Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.