Iowa Statewide Rule
Iowa 5% State Lodging Tax on Short-Term Rentals
Key Facts
- State rate
- 5% of sales price
- Local add-on
- Up to 7% more
- Exemption
- Stays over 31 days
- Collector
- Host or lodging platform
- Enforcer
- Iowa Department of Revenue
Summary
Iowa imposes a flat 5% state excise tax on the sales price of every short-term rental, collected from the guest by the host or platform like Airbnb and remitted to the Department of Revenue. Stays exceeding 31 consecutive days are exempt.
A tax of five percent is imposed upon the sales price for the renting of any lodging if the lodging is located in this state. ... "Lodging" means rooms, apartments, or sleeping quarters in a hotel, motel, inn, ... cabin, apartment, residential property, or manufactured or mobile home ... or in any place where sleeping accommodations are furnished to transient guests for rent ... [Exempt:] The sales price from the renting of lodging to a person where the lodging is rented by the same person for a period of more than thirty-one consecutive days ...
Full Breakdown
Iowa Code section 423A.3 imposes a five percent state hotel and motel tax on the sales price for renting any lodging located in Iowa. Section 423A.2 defines lodging to include a 'residential property' and any place furnishing sleeping accommodations to transient guests, so whole-home and room short-term rentals are covered regardless of zoning or property-tax classification. Under section 423A.5A the host, or a lodging platform such as Airbnb or Vrbo, must collect the tax, state it as a distinct line item, and remit it to the Iowa Department of Revenue. Cities and counties may add a local hotel and motel tax up to 7% on top. Rentals to the same person for more than 31 consecutive days are exempt under section 423A.5.
Violations & Penalties
Taxes collected are deemed held in trust for the state of Iowa; failure to collect and remit exposes the host or platform to assessment, interest, and penalties administered by the Department of Revenue under sales-tax procedures applied through section 423A.6.
Frequently Asked Questions
Does Iowa's hotel tax apply to Airbnb and Vrbo rentals?
What is the total tax rate on an Iowa short-term rental?
Are any short-term stays exempt from the tax?
Sources
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