Monthly Archives: August 2018

Iowa Water Tax Change

During the 2018 session, the Iowa legislature passed a new law which created a Water Service Excise Tax (WET).  Effective July 1, 2018, this tax replaces the current sales tax charged on water (which was 6% plus a 1% local option sales tax) and is NOT a tax increase.  The new local excise tax with be 6% with no local option tax.  It will apply to service charges, consumption, disconnection fees, and other related items, just as the current sales tax does.  Customer bills should be minimally affected.  This will appear as ET on your monthly billing statement.