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Water Service Excise Tax – Effective July 1

By: Shelby Hagan, City Clerk
Date Published: Tuesday, July 31, 2018

What do the new initials on my utility bill mean?

Water Service Excise Tax – Effective July 1

During the 2018 legislative session, a water quality bill (Senate File 512) was adopted requiring the City to implement a Water Service Excise Tax (WET) on the sale of water, effective July 1. The bill you receive in August will reflect the new tax.

The WET will replace the current state sales tax on water charges for residential and commercial accounts. The rate will remain the same at 6%. Commercial customer accounts will continue to be billed sales tax for sewer and storm water charges. The format of the bills will reflect the change.

The State will distribute WET revenues to the Water Quality Infrastructure Fund and the Water Quality Assistance Fund. This will provide money to the Department of Agriculture/Land Stewardship and the Iowa Finance Authority to improve water quality in Iowa.