423B.5 - LOCAL SALES AND SERVICES TAX.
423B.5 LOCAL SALES AND SERVICES TAX. A local sales and services tax at the rate of not more than one percent may be imposed by a county on the sales price taxed by the state under chapter 423, subchapter II. A local sales and services tax shall be imposed on the same basis as the state sales and services tax or in the case of the use of natural gas, natural gas service, electricity, or electric service on the same basis as the state use tax and shall not be imposed on the sale of any property or on any service not taxed by the state, except the tax shall not be imposed on the sales price from the sale of motor fuel or special fuel as defined in chapter 452A which is consumed for highway use or in watercraft or aircraft if the fuel tax is paid on the transaction and a refund has not or will not be allowed, on the sales price from the sale of equipment by the state department of transportation, or on the sales price from the sale or use of natural gas, natural gas service, electricity, or electric service in a city or county where the sales price from the sale of natural gas or electric energy is subject to a franchise fee or user fee during the period the franchise or user fee is imposed. A local sales and services tax is applicable to transactions within those incorporated and unincorporated areas of the county where it is imposed and shall be collected by all persons required to collect state sales taxes. All cities contiguous to each other shall be treated as part of one incorporated area and the tax would be imposed in each of those contiguous cities only if the majority of those voting in the total area covered by the contiguous cities favors its imposition. In the case of a local sales and services tax submitted to the registered voters of two or more contiguous counties as provided in section 423B.1, subsection 4, paragraph "c", all cities contiguous to each other shall be treated as part of one incorporated area, even if the corporate boundaries of one or more of the cities include areas of more than one county, and the tax shall be imposed in each of those contiguous cities only if a majority of those voting on the tax in the total area covered by the contiguous cities favored its imposition. The amount of the sale, for purposes of determining the amount of the local sales and services tax, does not include the amount of any state sales tax. A tax permit other than the state sales tax permit required under section 423.36 shall not be required by local authorities. If a local sales and services tax is imposed by a county pursuant to this chapter, a local excise tax at the same rate shall be imposed by the county on the purchase price of natural gas, natural gas service, electricity, or electric service subject to tax under chapter 423, subchapter III, and not exempted from tax by any provision of chapter 423, subchapter III. The local excise tax is applicable only to the use of natural gas, natural gas service, electricity, or electric service within those incorporated and unincorporated areas of the county where it is imposed and, except as otherwise provided in this chapter, shall be collected and administered in the same manner as the local sales and services tax. For purposes of this chapter, "local sales and services tax" shall also include the local excise tax.
Section History: Recent Form 85 Acts, ch 32, § 96 CS85, § 422B.8 86 Acts, ch 1042, § 11; 86 Acts, ch 1199, § 7; 88 Acts, ch 1154, § 3; 89 Acts, ch 276, § 2; 95 Acts, ch 83, §13; 99 Acts, ch 151, § 30--32; 99 Acts, ch 156, § 12; 2001 Acts, ch 116, §13; 2003 Acts, ch 178, §113, 121; 2003 Acts, ch 179, §142; 2003 Acts, 1st Ex, ch 2, § 187, 203, 205 C2005, § 423B.5 2005 Acts, ch 3, §70; 2005 Acts, ch 140, §14, 16, 26, 31; 2006 Acts, ch 1010, §104; 2006 Acts, ch 1158, §55 Referred to in § 28A.17, 423B.1
Footnotes 2005 amendments striking sales and services tax exemption for sales of lottery tickets or shares and striking language limiting duty of state retail sales tax collectors to collect local sales and services tax to taxing areas in which those persons have physical presence take effect June 3, 2005, and apply retroactively to July 1, 2004; 2005 Acts, ch 140, §16