Petitioner, the City of Farmington, requested a Declaratory Order to determine if campgrounds and cabins rented at a city owned park were subject to sales tax or hotel and motel tax. The Director found that the campgrounds were exempt from sales tax because Iowa Code section 423.3(32) exempts from sales tax the sale of personal property or of services furnished by a county or city. Cabins or other permanent structures are not included in the definition of campground but are subject to hotel and motel tax and there is no exemption for sales made by a city.
2023-01-26