The guidance available here explains the general guides rather than detailed discussions of Iowa tax law. We make every attempt to keep guidance current, however, changes in law or policy may not be immediately reflected.
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In 2018, the Iowa legislature enacted Senate File 2417, a state tax reform bill that includes extensive changes to the state’s tax structure. Effective January 1, 2019, the sales price from rendering, furnishing, or performing a personal transportation service in Iowa is subject to Iowa sales tax and local option sales tax, as applicable. Senate File 2417 changes the tax on limousine service to a broader tax on “Personal Transportation Service” defined as the arrangement or provision of transportation service, regardless of whether the service supplies or uses a vehicle in conjunction with the service. Personal transportation service only includes the transportation of people, not property, including, but not limited to, transportation services provided by a human driver, a nonhuman driver, or a ride sharing service.