Effective July 1, 2019, marketplace facilitators and remote sellers that exceed a certain sales revenue level must charge Iowa sales tax, including local option sales tax, the same as retailers with a physical presence in Iowa.
What is a retailer with a physical presence in Iowa?
Generally, a retailer with a physical presence in Iowa is any retailer that has any permanent or temporary place of business, employee or other representative, or property located in Iowa. A retailer with a physical presence in Iowa generally includes retailers required to collect Iowa sales tax prior to Iowa’s tax reform law and the United States Supreme Court’s decision in Wayfair v. South Dakota. Common examples are retailers that have a store in Iowa, send sales representatives to Iowa, or set up a temporary booth to sell items at fairs or trade shows in Iowa.