The Department of Revenue recognizes travel/hospitality is one of many industries that has been severely impacted by the recent pandemic. This also impacts local governments and organizations in those communities that benefit from Iowa’s hotel/motel tax. The Department collects the tax and distributes the funds back to local governments on a quarterly basis.
Because hotel and motel visits are down, local government officials should anticipate these distributions will be less. Also, some businesses have taken advantage of the Iowa Small Business Relief Tax Deferral program, which may affect the timing of hotel/motel tax distributions to local governments.
A hotel/motel tax distribution was completed in late May based on all March 2020 quarterly returns filed timely. All March 2020 quarterly returns approved for tax deferral must be filed on or before June 30, 2020, and will be included in the August 2020 quarterly hotel/motel tax distribution.
The Department is also offering tax deferrals for tax periods beginning April 1, 2020, through June 30, 2020. For the June quarter, all tax returns are required to be filed timely. As a result, hotel/motel tax distribution for the June 2020 quarter will occur in August, the normal timeframe.
Additional information may be found on our website: tax.iowa.gov/COVID-19
Local Government Officials contact: IDRLocalGov@iowa.gov; 515-725-2678
Media Inquires: John.Fuller@iowa.gov; 515-318-8864