1.A local sales and services tax may be imposed by a county on the sales price taxed by
the state under chapter 423, subchapter II. A local sales and services tax shall be imposed
on the same basis as the state sales and services tax or in the case of the use of natural gas,
natural gas service, electricity, or electric service on the same basis as the state use tax and
shall not be imposed on the sale of any property or on any service not taxed by the state,
except the tax shall not be imposed on the sales price from the sale of motor fuel, special fuel,
or electric fuel, as those terms are defined in chapter 452A, which is consumed for highway
use or in watercraft or aircraft if the fuel tax is paid on the transaction and a refund has not
or will not be allowed, on the sales price from
Free access — add to your briefcase to read the full text and ask questions with AI
1. A local sales and services tax may be imposed by a county on the sales price taxed by
the state under chapter 423, subchapter II. A local sales and services tax shall be imposed
on the same basis as the state sales and services tax or in the case of the use of natural gas,
natural gas service, electricity, or electric service on the same basis as the state use tax and
shall not be imposed on the sale of any property or on any service not taxed by the state,
except the tax shall not be imposed on the sales price from the sale of motor fuel, special fuel,
or electric fuel, as those terms are defined in chapter 452A, which is consumed for highway
use or in watercraft or aircraft if the fuel tax is paid on the transaction and a refund has not
or will not be allowed, on the sales price from the sale of equipment by the state department
of transportation, or on the sales price from the sale or use of natural gas, natural gas service,
electricity, or electric service in a city or county where the sales price from the sale of natural
gas or electric energy is subject to a franchise fee or user fee during the period the franchise
or user fee is imposed. A local sales and services tax is applicable to transactions within
those cities and unincorporated areas of the county where it is imposed, which transactions
include but are not limited to sales sourced pursuant to section 423.15, 423.17, 423.19, or
423.20, to a location within that city or unincorporated area of the county. The tax shall
be collected by all persons required to collect state sales taxes. However, a local sales and
servicestaxisnotapplicabletotransactionssourcedunderchapter423toaplaceofbusiness,
as defined in section 423.1, of a retailer if such place of business is located in part within a
city or unincorporated area of the county where the tax is not imposed.
2. The amount of the sale, for purposes of determining the amount of the local sales and
services tax, does not include the amount of any state sales tax.
3. A tax permit other than the state sales or use tax permit required under section 423.36
shall not be required by local authorities.
4. If a local sales and services tax is imposed by a county pursuant to this chapter, a local
excisetaxatthesamerateshallbeimposedbythecountyonthepurchasepriceofnaturalgas,
naturalgasservice, electricity, orelectricservicesubjecttotaxunderchapter423, subchapter
III, and not exempted from tax by any provision of chapter 423, subchapter III. The local
excisetaxisapplicableonlytotheuseofnaturalgas,naturalgasservice,electricity,orelectric
service within those cities and unincorporated areas of the county where it is imposed and,
except as otherwise provided in this chapter, shall be collected and administered in the same
manner as the local sales and services tax. For purposes of this chapter, “local sales and
services tax” shall also include the local excise tax.