Iowa Sales Tax Rate Increase to 6 Percent - July 1, 2008
Sales of the following are taxed at 5%. They are not subject to local option tax.
self-propelled building equipment
attachments customarily drawn or attached to them, including
auxiliary attachments which improve their performance, safety, operation, or efficiency
Auto rental tax remains at 5%.
Local option sales tax (LOST), if any, still applies.
The rate on the purchase of vehicles subject to registration is 5%. It is imposed on the purchase price.
The rate on motor vehicle leases is 5%. It is imposed on the lease price.
The vehicle must:
- Be subject to registration, but not a motorcycle or motorized bicycle
- Have a gross vehicle weight rating of less than 16,000 pounds
- Be leased for a period of 12 months or more