Farmers Guide to Iowa Taxes

Farmer’s Tax Guide, Publication 225

Hotel/Motel Tax

This tax is imposed on the gross receipts from the renting of rooms for 31 consecutive days or less. This tax applies to bed and breakfast establishments. The tax rate may not exceed 7 percent.

Internal Revenue Service

An Employer Identification Number (EIN) is also known as a Federal Tax Identification Number, and is used to identify a business entity. Generally, businesses need an EIN. You may apply for an EIN in various ways, and now you may apply online.

This EIN is your permanent number and can be used immediately for most of your business needs, including: opening a bank account; applying for business licenses; and filing a tax return by mail. However, no matter how you apply (phone, fax, mail, or online), it will take up to two weeks before your EIN becomes part of the IRS' permanent records. You must wait until this occurs before you can: file an electronic return, make an electronic payment, or pass an IRS Taxpayer Identification Number matching program. Phone: (800) 829-4933 from 7:00 a.m. to 10:00 p.m. 

Iowa Department of Revenue 

Iowa Sales Tax

Taxes for the sales of prepared food, goods and events must be remitted. No retail sales tax is collected on the sale of farm-raised fresh fruits and vegetables. Corn maze admission, for example, which is deemed as recreational, is subject to sales tax. You may apply for a sales tax permit by visiting the Iowa Department of Revenue’s Web site.

Iowa Sales Tax on Food

Iowa Department of Revenue’s Iowa Sales and Use Tax Booklet

Temporary Sales Tax Permit

It is possible to obtain a temporary sales permit for special events, such as a festival. For a temporary sales tax permit, fill out an online form with the Iowa Department of Revenue, or phone Cheryl Puls at (563) 386-6484 ext.10.

Tax Guide for Small Business, Publication 334