Do other government entities and schools pay the hotel/motel tax?

Prior to 7-1-08:  Contracts made directly with Iowa state / local governmental entities and schools were exempt from the 5% state excise tax (previously sales tax) on room rental, but were not exempt from the local hotel/motel tax.    

From 7-1-08 to 6-30-09:  Contracts made directly with Iowa state / local governmental entities and schools are exempt from both the 5% state excise and local hotel/motel taxes.

Beginning 7-1-09:  Contracts made directly with Iowa state / local governmental entities and schools will be subject to both the 5% state excise and local hotel/motel taxes.