Sellers of Fireworks Must Have an Iowa Sales Tax Permit
In addition to other licenses and permits required to legally sell fireworks in Iowa, the Iowa Department of Revenue (IDR) reminds sellers of fireworks they must have an Iowa sales tax permit. Fireworks are subject to Iowa state sales tax at the rate of 6%. If sales occur in an area subject to local option sales tax (LOST), the rate is 7%. See Local Option Rates and Sunsets.
Even those who will only be selling fireworks for a few days or weeks must have a sales tax permit. Those who don’t already have a permit should complete and submit the Iowa Business Tax Registration form on the IDR website at: https://tax.iowa.gov/please-read-you-register-your-business.
Businesses can make sales and collect tax immediately upon submitting an application. The Department does not require a business to delay opening while waiting for a sales tax permit number.