Groups lobby for carwash tax exemption in Iowa - Professional Carwashing & Detailing
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Groups lobby for carwash tax exemption in Iowa

DES MOINES, IA — Lobbying groups said the materials that carwashes need to purchase regularly should be tax free.

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DES MOINES, IA —The Quad City Times reported that the Heartland Carwash Association and the Petroleum Marketers and Convenience Stores of Iowa have lobbied the Iowa House and Senate for a carwash sales tax exemption this year.

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The Sept. 23 story stated that carwash owners have tried to persuade the Iowa state government to remove sales tax on the products they need on a day-to-day basis; namely water, soap and electricity.

The groups argued that because many carwashes operate on a coin-op system which does not accept pennies and nickels, it is difficult to charge the customer sales tax.

As a result, the business has to make up for the lost state revenue by providing Iowa’s 6 percent sales tax rate for each wash. According to wash owners, this hurts them greatly.

In effect, carwash owners who do not charge their customers sales tax are paying a 12 percent combined rate. An exemption on sales tax for water, soap and electricity would bring the number down to 6 percent.

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The carwash exemption was ultimately merged with other state bills for tax exemption which included the solar and geothermic energy industries.

Read the entire article here.

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