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Change in state law will mean $7,400 less in City of Decorah revenues

Posted: Wed, Aug 8, 2018 1:56 PM

As of July 1st, cities in Iowa can no longer charge local option sales tax on the water bills they send out.

Decorah City Clerk Wanda Hemesath says that will mean less money for the City of Decorah, since the tax will now be called an "excise tax," with the revenues going to the state instead of to local government.

Hemesath estimates the changes approved by the Iowa Legislature will mean a loss of around $7,400 in local option sales tax collections during the 2018-2019 fiscal year.