Iowa Sales Tax

[MarvBear]

Information from NADA Title & Registration Textbook 2004

 

Iowa Sales and Use Tax Applicable to Registration

 

5% use tax on new and used vehicle which are subject to registration. Allowance for the value of a trade-in given may be allowed. NON-RESIDENT exempt if the vehicle is to be registered in state of residence. Residents may receive use tax credit on tax paid to another state. NEW RESIDENTS moving to Iowa may not be required to pay use tax. Use tax can be collected by the dealer or can be paid by the owner at the County Treasurer’s office at the time of the transfer of title. When a customer receives more than one vehicle from the dealer on an even trade, or trades two or more vehicles for one for no consideration, no use tax is due.