Five Johnson County cities approve 1% local-option sales tax

Every incorporated city in Johnson County will have a 1 percent local-option sales tax following the results of the Nov. 4 city and school elections.

Voters in Coralville, Iowa City, North Liberty, Oxford and Shueyville all voted to approve the a 1% local-option sales tax, according to unofficial results Tuesday night.

To pass, voters in each city needed to give the measure at least 50 percent approval. The tax will go into effect July 1, 2026.

Cities typically use local-option sales taxes as a way to diversify revenue sources. It also can be used to dedicate funding to specific community priorities.

Under state law, 50 percent of the revenue must be put toward property tax relief. Local municipalities have discretion over how the other 50 percent is used. Each city had its own ballot language and voters in each city had to independently approve passage of the tax.

All local-option sales taxes are collected at the county level and then distributed to participating cities using a formula from the Iowa Department of Revenue that takes into account population and property valuations.

Campaign led efforts in Coralville, Iowa City, North Liberty

“Local Makes Sense,” a vote yes committee in support of the 1 percent local-option sales tax, led coordinated efforts in the county’s three most populous cities.

The vote yes campaign committee focused efforts on visitor spending in Johnson County, highlighting the dollars spent each year. Staff from Greater Iowa City Inc., an area economic and community development group, also campaigned in support of the measure.

City staff across Coralville, Iowa City and North Liberty have estimated that the tax could bring in tens of millions of dollars in revenue each year across the county.

“A ‘yes’ vote in Iowa City, Coralville and North Liberty demonstrates our community’s ability to work together, to seek solutions when times are tough and to take action to meet the demands of a growing community,” said Nancy Bird, President of Greater Iowa City Inc. “While we are thrilled with this victory we know the work has just begun and we look forward to working with our community partners to facilitate the next steps to ensure these funds are targeted in a way that meets the highest dividends.”

Iowa City to continue investing in community nonprofits

Iowa City voters approved the 1 percent local-option sales tax by 84 percent.

In Iowa City, 50 percent of the tax revenue not dedicated to property tax relief will be split, with 25 percent directed toward affordable housing initiatives, 10 percent toward public infrastructure, and 15 percent toward community partnerships.

Pete Robinson, an 80-year-old Iowa City resident, cast his vote at St. Patrick Church on the east side of town on Tuesday. He said he voted in favor of the local-option sales tax to provide more money for local government services.

“Municipalities are in trouble for funds to do normal things that municipalities do. It's largely because of state of Iowa policies and tax policies,” he said.

Carol French Johnson and Charles Johnson, both retired, also cast their vote at St. Patrick in Iowa City on Tuesday. They, too, voted for the local-option sales tax.

“We believe in better services for our city and for our county. And we love being here ... but great services cost money,” said Carol, 79.

Iowa City and Ankeny are the only two Iowa cities with a population of more than 50,000 that do not have the 1 percent local-option sales tax in addition to the statewide 6 percent tax.

Iowa City previously used local-option sales tax from 2010 to 2013 to collect $34 million for flood mitigation projects. Those projects included the Dubuque Street reconstruction, work on the south wastewater treatment facility and Riverfront Crossings Park.

Coralville’s tax revenue to be put toward new recreation center

Coralville voters approved the 1 percent local-option sales tax by 85 percent to help fund a new recreation center.

Coralville is moving toward construction of a new recreation center, east of the existing facility in ST Morrison Park. The plan is estimated to cost $50 million to $55.4 million. The 109,700 square-foot space would include three gymnasiums, an elevated track, a spa and three pools: a competition pool with spectator seating, a leisure pool and a recreation and community lap pool.

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Coralville resident Megan Hellman, 25, cast her ballot at the Coralville Public Library on Tuesday. She said she voted “yes” for the 1% local-option sales tax to support building a new recreation center.

“I’m all for that,” Hellman said. “I think Coralville has grown but I don’t think all of its community resources have grown. So they probably just need to update it.”

James Soukup, 34, expressed skepticism over the need for a new recreation center in Coralville, but he said he voted in favor of the local-option sales tax Tuesday to provide some property tax relief.

“I think having a break with our property taxes ... is very beneficial, especially for someone like me who doesn't necessarily make a lot of money,” said Soukup.

The Iowa City school board has expressed interest in partnering with Coralville on the new rec center, by providing as much as $14 million for the project.

The current rec center pool was built 37 years ago as a partnership between the city and the school district, and the school district’s four swim programs use the rec center pool. The district also pays about one-third the operating costs. The shared use would continue with a new rec center.

North Liberty revenues to be put toward new fire station

In North Liberty, 76.56 percent of voters approved the local-option sales tax that will be used to build a new fire station.

The proposed project, estimated to cost between $15 million and $18 million, calls for the city’s only fire station to be demolished and rebuilt. This comes after the fire department put plans for a second station on hold due to staffing concerns and structural inadequacies at the existing station.

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North Liberty voters in 2009 rejected a local-option sales tax ballot measure that called for 100 percent of revenue to be put toward road improvements. The measure was opposed by 61 percent of voters.

Oxford and Shueyville both approve measure

Outside of the metro area, both Oxford and Shueyville will allocate 50 percent of tax revenue “for any lawful purpose,” which can include capital projects and day to day city operations.

In Oxford the tax was approved by 83.9 percent of voters, and by 63.1 percent of voters in Shueyville approved the tax.

Past Johnson County LOST initiatives

Voters in Swisher, Solon, Lone Tree and Hills passed local-option sales tax measures in the mid-2010s. Tiffin passed a local-option sales tax in fall 2023, and West Branch and University Heights in fall 2024.

In 2014, due to state laws at the time, the cities of Iowa City, Coralville, North Liberty, Tiffin and University Heights voted on a local-option sales tax as one bloc. The measure was rejected by 54 percent of voters.

Fern Alling of The Gazette contributed to this report.

Comments: megan.woolard@thegazette.com

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