Sales Tax [1]

The University is exempt from paying Iowa sales tax on the gross receipts from goods and services rendered in fulfilling its purpose as an educational institution.  Taxes are collected on the gross receipts of any activities for which an admission fee is charged for athletic events. (Policy Manual Part V., Chapter 10)

An Iowa Sales Tax Exemption Certificate is required when normally taxable items or services are sold tax free. 

The department making purchases exempt from Iowa sales tax needs to complete the Iowa exemption certificate linked below by completing the seller’s name and address in the fields highlighted in red. in the upper right corner of the form.  This needs to be completed before giving the form to the seller.

• Iowa Sales Tax Exemption Certificate [2]

The current state sales tax rate is 6%.  The LOST (Local Option Sales Tax) of 1% for certain cities within Johnson County expired on 6/30/13 and is no longer in effect.

The University is subject to the state-imposed hotel and motel tax as well as any locally imposed hotel and motel taxes within Iowa.  The Iowa Sales Tax Exemption Certificate does not apply to the hotel taxes.

Other state exemption forms can be found below.

Summary of the University of Iowa’s sales tax exemption [3] status by state.

Certificates or forms available for the following states (pdf):

 

• District of Columbia [4]
• Florida [5]
• Illinois [6] (does not apply to lodging)
• Indiana [7] (does not apply to food and lodging)
• Kansas [8]
• Kentucky [9]
• Massachusetts ST-2 [10]
• Massachusetts ST-5 [11] (does not apply to lodging)
• Michigan [12]
• Minnesota [13](does not apply to sales of prepared food, drinks and lodging)
• Missouri [14]
• Ohio [15]
• Tennessee [16]
• Texas [17] (does not apply  to hotel occupancy tax)