{"id":373341,"date":"2016-03-31T21:35:17","date_gmt":"2016-04-01T02:35:17","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/state\/iowa-law\/iowa-consumer-tax-laws.html"},"modified":"2016-06-20T00:00:00","modified_gmt":"2016-06-20T05:00:00","slug":"iowa-consumer-tax-laws","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/state\/iowa-law\/iowa-consumer-tax-laws.html","title":{"rendered":"Iowa Consumer Tax Laws"},"content":{"rendered":"\n
\n \n
\n

Iowa Consumer Tax Laws<\/h1>\n
\n
\n

Created by FindLaw’s team<\/a> of legal writers and editors<\/i><\/p>\n\n | Last updated\n

\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
\n

This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
\n

The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Consumers in Iowa pay many different types of taxes on the different goods and services they use every day. Typically, the businesses<\/a> must submit the taxes for the consumer. Some taxes are intended to purely raise revenue for the government to keep the schools, police, health care systems, and other services operational. Other taxes have a dual purpose, they both raise money and inhibit certain behaviors viewed as bad by the government or society. These taxes make any \u201cvice\u201d items more expensive, such as taxes on liquor, cigarettes, or gambling<\/a>.<\/p>\r\n

Another influence on consumer taxes is market controls. For example, California taxes wine growers and vineyards a low excise tax<\/a> on the wine they make, it\u2019s nearly the lowest in the country. If California taxes on wine were close to the national average, then California wines sold in other states would have artificially inflated prices, thus hurting its marketability, which California doesn\u2019t want to do because it would hurt the economy. Iowa isn\u2019t known as a great wine growing region and it also has a high wine tax at the third most expensive in the country.<\/p>\r\n

Iowa Consumer Tax Rates<\/h2>\r\n

A sample of the common consumer taxes in Iowa are listed in the table below.<\/p>\r\n\r\n
Sales Tax<\/b><\/td>\r\nIowa has a 6% sales tax<\/a> on all tangible personal property, goods, wares, or merchandise sold in the state to consumers.<\/td>\r\n<\/tr>
Use Tax<\/b><\/td>\r\nGoods or services that are purchased tax-free by consumers and are subsequently used in Iowa are taxed at 6%<\/a>, just like the sales tax. For example, a laptop, tools, or clothes bought out-of-state or online tax-free and then used in Iowa by an Iowa resident would be taxed 6% for use.<\/td>\r\n<\/tr>
Gasoline Tax<\/b><\/td>\r\nIowa gas taxes depend on the type of fuel:
\r\n
Cigarette Tax<\/b><\/td>\r\nIowa charges a tax of $1.36 per pack<\/a> of 20 cigarettes and $1.70 per pack<\/a> of 25 cigarettes.<\/td>\r\n<\/tr>
Liquor Tax<\/b><\/td>\r\nThe liquor tax<\/a> depends on the type of alcohol used:
\r\n
Gambling Tax<\/b><\/td>\r\nGambling taxes are administered by the Iowa Department of Inspections & Appeals: Social & Charitable Gambling Unit<\/a> or the Iowa Racing and Gaming Commission<\/a>. The taxes and fees depend on the type of gambling activity, including licenses for various bingo, game nights, raffles, etc. from $25 to $150. A license to manufacture bingo is most expensive at $1,000 for one year.

Riverboat and racetrack gambling is taxed at a graduated rate from:<\/p>\r\n