Linn County, IA Short-Term Rentals: Taxes & Fees (2026)

HF 2641 (2020), codified at Iowa Code Section 414.1 for cities and the parallel county-zoning provision in Iowa Code Chapter 335, requires counties to treat short-term rental property as a residential land use and bars them from prohibiting STRs, requiring an STR-specific license or permit, or imposing fees that single out short-term rentals. Linn County's Unified Development Code (Chapter 107 of the Code of Ordinances) governs zoning in the unincorporated area only and does not impose a separate STR registration fee. Operators must, however, register with the Iowa Department of Revenue for a sales/use tax permit and collect the 5% state hotel and motel excise tax under Iowa Code Chapter 423A on rentals of 31 consecutive days or fewer. Iowa Code Section 423A.4 authorizes counties to add a local hotel/motel tax up to 7% by referendum that applies only outside incorporated cities; confirm with the Linn County Auditor (319-892-5300) whether a county lodging tax is currently in effect. Stays inside Cedar Rapids, Marion, or Hiawatha are subject to those cities' separate 7% local lodging tax instead.