Keeping an Eye on IC

As has been reported in the Press Citizen this week, the City of Iowa City will be exploring the possibility of a Local Option Sales Tax (LOST) vote. This has major implications for U-Heights. to find what I've said about this before, find "LOST" from the topic list at the right.

The P-C story is here: Iowa City officials talk adding local option sales tax

When all of Johnson County voted on LOST in 2009, University Heights passed their measure with 80% support. As stated on the ballot at the time, money would be used for wide sidewalk projects and other purposes. Both the Melrose and Sunset wide sidewalks were constructed with 20% of funding coming from LOST money. The other 80% of those projects were funded by Federal dollars.

The 2009 LOST had a sunset date of July 2013. We received our last payment in September, and then got another one in October. From 2009-14 our share of LOST revenues averaged $10,000 dollars per month. It had been the equivalent of 10% of our annual revenues from 2009-2013.

Unlike Iowa City we *probably* won't be as hurt by property tax changes as they will. However as a small landlocked community our budgets are extremely tight.

I contacted the county auditor's office on Tuesday and asked the following questions. Their answers are in RED

Is it still true that LOST has to be voted on county-wide? 

YES

Does each municipality in the county get to hold a LOST vote if they desire?

YES

Would all taxes collected among LOST approving communities be pooled and re-allocated as they were in 2009?
YES, it would go through the Department of Revenue and then dispersed to each of the LOST approving communities.

I will say this as plainly as I can: If Iowa City decides to hold a LOST referendum it is imperative that we decide to put up a ballot initiative and to pass it. We will have to pay the tax in any community that passes an initiative and because food and medical services are exempt, we won't be collecting any tax in University Heights.