Iowa businesses collected and paid $415.6 million in sales taxes in the second quarter of 2007, a 3.4 percent increase over second-quarter 2006, according to data released Thursday by the Iowa Department of Revenue. The number of businesses filing returns increased 1.5 percent, to 81,231.

Eating and drinking establishments topped those businesses seeing sales increases, with a sales increase of nearly 7 percent for the quarter ending June 30. Other sectors with strong year-over-year gains were specialty retail, at 5.7 percent, and services, at 5 percent. Wholesale goods and building materials sales were the only declining sectors, with decreases of 3 percent and 2 percent, respectively.

Changes in sales volume among Greater Des Moines communities varied widely, from a 25 percent increase in Johnston to a decrease of nearly 4 percent in Norwalk, compared with second-quarter 2006. Taxable sales for the quarter increased by 1 percent in Des Moines and 6 percent in West Des Moines.