Local Hotel / Motel Tax

Iowa Department of Revenue


Local hotel / motel tax is imposed on the rental of sleeping rooms for 31 consecutive days or less. Contracts for periods of more than 31 consecutive days are exempt. To qualify, the renter must contract to rent for a single period of more than 31 days and cannot accumulate these days. Tax Rate: May not exceed 7%. This is in addition to the state hotel / motel tax rate of 5%. State sales tax and local option sales tax, if any, do not apply.

Code Citation IC 423A

Who Applies Anyone renting taxable sleeping rooms. Requested as part of the application for a sales tax permit.

When To Apply Prior to making taxable rentals.

Initial Requirements This excise tax is reported and remitted on a quarterly basis electronically through eFile & Pay. No permit other than an Iowa sales tax permit is required to collect this tax.

Duration Does not pertain.

Processing Time 4-6 weeks. Submitting the application electronically on the Department website speeds the process.

Fee Structure None.

Renewal Requirements Does not pertain.

Exam Does not pertain.

Additional Information None.

Services Provided

Service Category

  • Service SubCategory
Contact Information
Taxpayer Services
1305 E. Walnut St
Des Moines, IA 50319