Iowa City to consider new sales tax - KWWL - Eastern Iowa Breaking News, Weather, Closings

Iowa City to consider new sales tax

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IOWA CITY (KWWL) - Next week, the Iowa City City Council will determine whether to send a 1 percent local option sales tax to the voters in November.

The city says the sales tax could be used to offset the loss in revenue linked to recent state property tax reform.  Revenues could also be earmarked for street improvements and affordable housing.

A similar 1 percent sales tax expired in 2013.  That tax was used for flood protection projects, among other things.  The city collected more than $35 million over four years.

On Monday, the council can decide whether to put the sales tax on the November ballot or defer the issue.  If it ends up on the ballot, voters in Iowa City, Coralville, North Liberty, University Heights, and Tiffin would have a say.

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