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Iowa sales tax changes, January 2018


 Iowa: Local sales tax changes abound.

No sales tax rate changes are taking effect in Iowa on Jan. 1, 2018. However, the sunset or expiration date for local option sales taxes (special-purpose taxes implemented and levied at the city or county level) is changing in more than a dozen areas. In addition, several new local option hotel/motel taxes will take effect on the first of the year.

Delaware County

The sunset date for the local option tax has been extended to Dec. 31, 2029, throughout unincorporated Delaware County, as well as in the following cities:

  • Colesburg
  • Delaware
  • Delhi
  • Dundee
  • Earlville
  • Greeley
  • Hopkington
  • Manchester
  • Masonville
  • Ryan

Jefferson County

The sunset date for the local option tax has been removed in Fairfield, and extended to June 30, 2029, in Batavia. Local option taxes will expire on Dec. 31, 2029, in the following cities:

  • Libertyville
  • Lockridge
  • Packwood
  • Pleasant Plain
  • Maharishi Vedic City

Madison County

The sunset date for the local option tax has been removed in Winterset.

New hotel/motel local option taxes

A new hotel/motel tax of 7 percent will take effect on Jan. 1, 2018 in the following locations:

  • Corning, Adams County
  • Waukon, Allamakee County
  • Parkersburg, Butler County
  • West Okoboji, Dickinson County
  • Amana Colonies, Iowa County
  • Washington, Washington County

See the Iowa Department of Revenue for more details. Learn more about tax automation software, which can facilitate transaction tax compliance in all states, from Avalara.


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.