Sales Tax News - March 26, 2018

Des Moines Sales Tax Increase Fails

A one-cent increase to the local sales tax rate failed to pass earlier this month in Des Moines, Iowa.  Fifty-four percent of voters in Des Moines voted to approve the tax, but it still failed due to the lack of support in the suburbs.  Des Moines and nine other neighboring cities were required to vote together as one block. Iowa state law requires cities with contiguous borders to vote as a group.  The ten contiguous cities in Polk County rejected the tax hike by a collective vote of 12,004 to 11,778.  Polk county is one of two counties in the state that does not have a local sales tax option in place. 

Naperville Approves Sales Tax Increase

Naperville, Illinois City Council members voted to increase the city's home rule sales tax from .5 percent to .75 percent.  The increase also raises the total retail sales tax from 7.5 percent to 7.75 percent.  Money earned from the additional taxes will help fulfill $2.1 million in budget changes the council requested staff find to help keep the city's property tax levy down.  Revenues generated from the home rule sales tax is split almost evenly among Naperville residents and visitors.  The new sales tax rate will go into effect July 1. 

An Oklahoma City Looks to Extend Capital Improvement Sales Tax

Voters in Purcell, Oklahoma could be asked to extend a penny sales tax to expire in 2025.  Revenues from the sales tax are used for capital improvement projects across the city.  Voters initially voted for a 10-year improvement sales tax in 2000, and they also approved a 15-year extension in 2010 after revenue from the tax helped fund the police and fire complex.  Council members were informed that the city's existing debt will be paid off by 2025, but the city anticipates more multi-million dollar projects such as a new city yard and swimming pool.  A resolution calling for the special election is expected to be discussed at April's council meeting.