July 28, 2014

$34.5 million in hotel/motel taxes collected in Iowa

A new report shows people are leaving behind a lot of cash after staying at Iowa motels and hotels.

Sixteen counties and 156 cities in Iowa charge hotel/motel taxes, on top of the state sales tax. During the last state fiscal year more than $34.5 million worth of hotel/motel taxes was collected from customers who paid for some sort of sleeping accommodations in Iowa.

Iowa’s largest city, Des Moines, had the largest take, but cites with colleges and universities like Ames, Iowa City, Cedar Falls, Grinnell and Waverly — all claimed additional tax revenue from charging a hotel/motel tax.  The data comes from a report released today by the Iowa Department of Revenue.

By state law, the hotel-motel tax in any city or county cannot exceed seven percent of the rental rate for the room.