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LOST Sales Tax Still Being Collected

IOWA CITY (CBS 2/FOX 28) - Johnson County officials say they're still having a problem with merchants collecting a sales tax they aren't supposed to collect anymore.

County Auditor Travis Weipert sent a note Thursday, reminding businesses they are no longer supposed to collect a one percent Local Option Sales Tax.

In May 2009, following the devastating 2008 floods, Iowa City, Hills, Lone Tree, Oxford, Shueyville, Solon, Siwsher, Tiffin and University Heights approved the one percent increase in the sales tax to pay for flood repairs.

That pushed the sales tax in Johnson County to seven percent.

However, authorization for the tax expired on June 30, 2013, rolling back the sales tax to six percent.

Weipert says his office is still getting reports that some businesses are charging the higher tax, and is encouraging businessmen to stop and warning consumers to check their sales receipts.

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