Iowa City sales tax to be lowered
In less than one week, Iowa City’s sales-tax rate will drop for the first time in nearly four years.
After an increase was approved by voters in May 2009 to help flood protection and recovery efforts, the 1-cent local-option sales tax will drop 1 cent, meaning the saleks tax will fall from 7 percent to 6 percent on July 1.
In a Monday news release, the city reminded businesses not to collect the tax after June 31.
To date, the tax has helped raise more than $34 million in flood-mitigation projects as well as providing subsidy funding for two large-scale public infrastructure projects: the $33 million “Gateway Project” on Dubuque Street and the relocation of the North Wastewater Treatment operations, 1000 S. Clinton St., to the South Wastewater Treatment Plant, 4366 Napoleon St. S.E.
The completion of both projects will result in the elevation of flood-prone sections of Dubuque Street, the reconstruction of Park Road Bridge, and new city parkland.
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