Automobile Rental Excise Tax Registration

Iowa Department of Revenue


5% excise tax imposed on the rental of passenger vehicles designed to carry nine or fewer passengers that are rented for a period of 60 days or less. The tax is not imposed on delivery trucks, motorcycles, and motorized bicycles. This is in addition to the state sales/use tax, and local option tax, if any. Code Citation IC 423C Who Applies Anyone renting vehicles that are subject to the excise tax. This excise tax is reported and remitted on a quarterly basis electronically through eFile & Pay. No permit other than an Iowa sales or use tax permit is required to collect this tax. When To Apply Before operations begin in Iowa. Initial Requirements An automobile rental establishment must collect the Automobile Rental Excise Tax by adding the tax to the rental price of the automobile. When collected, the tax must be stated as a distinct item separate and apart from the rental price and other taxes. Duration Does not pertain. Processing Time 4-6 weeks. Submitting the application electronically on the Deparment website speeds the process. Fee Structure No fees. Renewal Requirements Does not pertain. Exam Does not pertain. Additional Information N/A

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