Johnson County stakeholders held a meeting on Tuesday to discuss and campaign for a proposed local option sales tax as a new way to provide municipal funding.
The proposal is a one-percent increase to the current six percent sales tax, which would appear on the ballot during the Nov. 4 city council election. Council members from each city described their respective uses for the tax revenue, but all had one revenue use in common: affordable housing.
Jessica Andino, the executive director of Johnson County’s Affordable Homes Coalition, said all three city councils recognize accessing safe and affordable housing is a growing challenge for all areas.
Among the representatives for the three cities, Think Iowa City Vice President of Sales Stacey Houseman said Coralville wants the added tax revenue to help build a new community recreation center and to provide other quality of life benefits around the city.
The representatives who support the tax said with over $458 million in visitor spending in Johnson County, the revenue will be a great way to invest back into the community, according to presentation material distributed during the meeting.
Along with a new recreation center and affordable housing, Coralville also intends to use the revenue for property tax relief.
Affordable housing, infrastructure, and partnerships with community organizations were what Iowa City wanted to focus on, according to the former Vice President for Student Life at the University of Iowa, Tom Rocklin.
Rocklin said rent is one thing people can never skip on paying.
Iowa City plans to use revenue from the tax to invest in infrastructure such as roads, trails, sidewalks, and new facilities that all can enjoy, as well as help strengthen community partnerships.
Related: IC City Council moves to send local option sales tax to voters
“Iowa City is home to a rich ecosystem of nonprofits that make our community stronger,” Rocklin said. “[Revenue] will greatly help support that community.”
Ashley Bermel, a North Liberty city councilor, said the North Liberty Fire Station is currently not up to modern standards and has issues accommodating different types of vehicles.
She said the additional revenue from passing the measure on the ballot in November would go toward constructing a new fire station. North Liberty would also use the tax revenue for upgrades to their Community Center, trails, and parks in the city.
North Liberty’s fire station was not built to be used at its current capacity.
This would not be the first time that Iowa City has implemented a sales tax increase; however, it has only ever been temporary, sparking hopes from advocates for this new implementation, Anthony Haughton, UI Hubbard Scholars Program Assistant, said.
“Iowa City previously had LOST to help infrastructure, but now it’s exciting that it would have no endpoint,” Haughton said.
Haughton said millions of visitors come to Johnson County every year, with the UI as a primary draw, either academically or through athletics, and they would all benefit from additions to the city that new funding could help create.
Rocklin said affordable housing is crucial and that it is important for each city to carefully choose how funding from the tax will affect each city uniquely.