If your company is located or does any business in this state, get your calendars ready.

Iowa Department of Revenue has just announced an increase for the state’s sales and use tax rates.

Beginning July 1, 2008, the rate will be increased from 5% to 6%. The new rate applies to:

• sales of tangible personal property
• waste collection and disposal
• bundled transactions
• utilities, and
• most telecom services.

But while you’re noting the change, here’s an early heads-up for another change: DOR also announced the rate will be reduced from 6% back down to 5% effective January 1, 2030.

Tags: Department of Revenue, Iowa, Rate change, Sales and use tax