Hunter
08/14/25
The Coralville City Council approved language for a local option sales tax initiative at this week’s meeting.
The Council voted unanimously to approve the resolution, allowing it to be sent to the County Auditor’s Office ahead of deadline for inclusion on the November ballot.
If approved by voters by a simple majority in November, it would mean anywhere from $2.9 million to $7.3 million in additional revenue for the city, by staff estimates. The tax would go into effect July 1, 2026. Certain items would be exempt from the tax, including groceries, rent or mortgages, utilities, vehicle purchases, gas, motels or hotels, prescription drugs and other health products would be exempt from the 1% surcharge.
Half of the revenue by law must be used for property tax relief, with the rest at the city’s discretion. The language on the ballot will state the remaining funds will be used for “Capital projects, including but not limited to, the recreation center project, parks, trails and other projects identified from time to time in the city’s capital improvements plan, for programs and initiatives that increase affordable housing supply and support neighborhood reinvestment projects, home improvement and home renovation grants, rental rehabilitation, and other housing projects designated by city council.”
Coralville becomes the third city in the corridor voting on a local option sales tax; Iowa City and North Liberty passed their own resolutions earlier this year.