As of November 1st, an Airbnb stay in the Iowa will be a little more expensive. That's because the vacation rental marketplace has agreed to collect hotel and motel taxes in the state, including cities and counties that have their own hotel/motel taxes.

According to the agreement with the Iowa Department of Revenue, Airbnb will collect the taxes on behalf of hosts in Iowa and then pay them to the state. Previously, hosts were responsible for collecting taxes and then paying them to the state.

This is the first agreement that Airbnb has made with the state of Iowa. They have similar agreements in Illinois, Kansas, and Michigan.

Iowa has a 5% hotel/motel tax rate statewide. Cedar Rapids, Marion, Coralville, Iowa City, and North Liberty all have a 7% tax.

The new tax rule will go into effect November 1st.


[via Gazette]

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