Iowa City puts 1% local option sales tax on Nov. 4 ballot to fund property tax relief, housing and infrastructure

Kirk Layman, assistant city manager for Iowa City, told the Senior Center Commission that the City Council has placed a 1% local option sales tax (LOST) on the Nov. 4 ballot and explained how the revenue could be used if voters approve it. "Local option sales tax is a 1% tax on goods that are sold within Iowa City limits," Layman said.

Layman said state law enables cities to adopt the tax and requires that 50% of LOST revenue be used for property tax relief. He told commissioners the ballot language proposed by council divides the remainder among affordable housing (25%), public streets/parks/facilities (10%) and community partnerships, including social services and arts/economic development initiatives.

The nut graph: Iowa City could see an estimated $8 million to $10 million a year if it adopts LOST on its own, Layman said; revenues would be larger if nearby Coralville also adopts the tax. That revenue is intended to provide a steady, dedicated source for capital projects, property tax relief or bond…