Vote yes on local option tax in Johnson County

Iowa City is one of only two cities in the state with a population topping 50,000 that has not approved a 1 percent local-option sales tax.

For the first time in more than a decade, Iowa City voters have been asked to approve a local-option sales tax after years of debate about how to fund housing and infrastructure needs without raising property taxes.

On Nov. 4, voters will decide whether Iowa City, Coralville, and North Liberty will start charging a local-option tax on local purchases in 2026.

We endorse the sales tax measures and urge voters to vote yes. A simple majority of votes is needed to approve the tax measures.

“Local-option sales tax allows our communities to fund projects that matter by capturing spending from the millions of visitors who shop and dine in Johnson County every year,” said Nancy Bird, president of Greater Iowa City Inc., according to reporting by The Gazette’s Megan Woolard. “Almost every other city in the state is collecting this revenue. It's time for our largest municipalities to use this popular and proven funding tool to support high-impact projects and programs.”

Each community has its own plan for the tax dollars.

In each jurisdiction, a state-required 50% share must be used for property tax relief. The rest can be spent on local projects and needs.

Iowa City would use, according to its ballot measure, a 25% share “to preserve existing affordable housing stock, increase shelter, transitional, and permanent housing supports, and increase access to and the supply of affordable housing for households with low incomes.”

Another 10% would go for “maintenance and construction of public streets, sidewalks, trails, parks, and facilities as designated by City Council.” And 15% would be used to support “community partnerships, including, but not limited to, partnerships that support intergovernmental, economic development, arts and culture, and social service priorities as designated by City Council,” the measure says.

Iowa City officials estimate the tax could bring in $8 million to $10 million annually.

In Coralville, the focus of option tax funding is a $50 million to $55 million, 109,000-square-foot recreation center. If the tax fails, that project will be paused. If it passes, the tax is expected to generate up to $7.3 million annually.

“The Recreation Center is the heart of Coralville and has something for everyone,” said Stacey Houseman, Coralville resident and member of the vote yes campaign committee.

North Liberty, which would collect up to $3.9 million annually, wants to spend local-option tax dollars on a wide array of capital projects and housing needs. A focus would be on public safety facilities, including a new fire station.

“North Liberty needs public safety facilities that meet the demands of our rapidly growing city,” said Ashley Bermel, North Liberty resident and member of the Vote Yes committee.

These plans clearly would improve the cities’ ability to provide services, address the stubborn shortage of housing and enhance residents’ quality of life.

Approving the tax in all three cities also ensures a level playing field for local businesses and avoids sending shoppers to one city over another for minor price differences.

We’re sympathetic to the argument that sales tax increases put a disproportionate burden on low-income people. But in Iowa City, expanding access to affordable housing and increasing partnerships to meet social services priorities could also bring benefits.

The spending plans are thoughtful, and it’s time to join other cities in putting their sales tax dollars to good use. Voters should support the tax increase.

(319) 398-8262; editorial@thegazette.com