The Local Option Sales Tax, or LOST, was approved by Iowa City voters following Tuesday’s election, according to unofficial results. The public measure garnered over 9,000 votes out of nearly 11,000 cast.
Coralville and North Liberty approved the tax as well, with 3,217 votes and 1,777 votes, respectively.
According to the Iowa City website, with all three cities approving the measure, up to $22 million could be generated from the tax.
LOST, which is often called a “penny tax” as it would add a penny of tax to every dollar spent, would increase the sales tax on most taxable purchases from 6 percent to 7 percent and will go into effect on July 1, 2026.
Assistant City Manager Kirk Lehmann said LOST is broken into “four buckets,” with 50 percent going toward property tax relief, 25 percent going toward affordable housing, approximately 15 percent going toward community partnerships, and 10 percent going toward public facilities and infrastructure.
“Voters should understand what’s on any given ballot, and I think being informed about what they’re voting on means that they can make a decision that’s going to be best for them and for the community,” he said. “It really comes towards making sure that you’re following your values and making sure that you’re understanding what you’re voting on.”
Councilor Josh Moe said he was in support of LOST as it is really important for the city government.
“Right now, the state has dramatically reduced the amount of money that we’re bringing in, and the citizens of Iowa City expect good services and high-quality government,” he said. “We need LOST to continue to make good on our promises and do even more.”
Iowa City resident John Fever also voted to approve the provision and said he thinks the 1 percent increase is such a small amount of money, but it will be going toward making the city a better place.
“We already have these really great facilities, and we were talking about having people that were coming in from out of town, like on football days, and utilizing all of our facilities,” he said. “Now, we’re gonna get a little bit of revenue. I’m supportive of affordable housing, and that’s one of the earmarks for the sales tax to go toward as well.”
Mike Edrington, a photographer from Iowa City, cast his ballot in favor of the 1 percent tax, and said the council should use money made from the tax to better support the unhoused population in Iowa City.
“I feel really strongly that we should be doing as much as we can because the population of people that are unhoused here in town is climbing all the time, especially as we get into colder weather,” Edrington said.
Casting a ballot at Catlett Residence Hall Tuesday afternoon, Emre Ustomer, a University of Iowa second-year student and Iowa City resident, did not vote for any candidate on the ballot, Rather, Ustomer went to the polls to vote in favor of LOST.
“I’m cool with what the money is going for — the relief, the infrastructure,” he said. “Cities run on these things, and it’s good they’re getting more funding. I think it’s good for our infrastructure, our taxes will be going to something. And honestly, it’s not that big of an increase in price.”