Residents in five Iowa counties will pay a little more in sales tax starting tomorrow, July 1.
The sales tax goes up one percent in Iowa City, Marion and a few other cities in Johnson and Linn Counties to raise money for flood recovery. A few towns in Ida and Marshall Counties will also see a one-percent increase in the local sales tax. The local option sales tax in Webster County goes from one-half to one percent tomorrow as well.
Renee Mulvey of the Iowa Department of Revenue says the change should be seamless for consumers.
"The businesses are the ones who have the work to do to make sure that they know which jurisdictions have a local option tax and which don’t so they can be collecting," she says.
Some cities in Linn County, including Cedar Rapids, began collecting a local option sales tax in April. Since that time, Mulvey says the new tax has generated nearly five million dollars for flood recovery in Linn County.
Here’s the list of new jurisdictions imposing a one percent local option sales tax as of July 1, 2009:
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Arthur, Battle Creek and Ida Grove in Ida County; Saint Anthony in Marshall County;
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Hills, Iowa City, Lone Tree, Oxford, Solon, Swisher, Tiffin and University Heights in Johnson County;
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and Center Point, Hiawatha, Marion, Robbins and Walford in Linn County.
The local option sales tax goes from one-half to 1 percent on July 1 in the following Webster County communities: Fort Dodge, Gowrie, Dayton, Lehigh, Otho, Stratford, Badger, Barnum, Callendar, Clare, Duncombe, Harcourt, Moorland and Vincent.