On the Ballot November 4
A local sales and services tax shall be imposed in the City of Coralville, Iowa at the rate of one percent (1%) to be effective starting July 1, 2026.
Revenues from the sales and services tax shall be allocated and expended as follows:
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50% of the tax shall 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 the City Council; and
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50% for property tax relief.
What is a
Local Option Sales Tax
(LOST)?
Often shortened as "LOST" or called a "penny tax," a local option sales tax is simply an extra 1% sales tax added to some purchases. Just like sales tax, purchases of unprepared food for human consumption (groceries), gasoline, and utilities will not include the local option sales tax. 50% of the tax received will be for property tax relief.
Coralville is Worth Every Penny
State law requires that half of local option sales tax revenue must go toward property tax relief. Guided by community feedback and the City’s strategic plan, the Coralville City Council has chosen the following priorities for sales tax proceeds:
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Parks, trails, and other projects in the capital improvement plan
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Affordable housing
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Coralville Recreation Center
The Coralville Recreation Center was built in 1972 and no longer serves the needs of our community. Revenue from a local option sales tax would allow Coralville to build a new, state-of-the art recreation center rather than continuing to invest tax dollars to maintain the old building.
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The new recreation center would include gymnasium space with three courts for a variety of sports including basketball, volleyball, pickleball, and futsal soccer. It will also include a 200 meter walking track, cardio and weight area, fitness studios, a soft turf area and several community rooms. Two new natatoriums will be built to serve the swimming needs of the community. One swim space will include a pool for recreational lap swimming, lessons, and aquatic exercise. An adjacent pool will have shallow water and aquatic play features including fountains, slides, and vortex.
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The second natatorium is a state-of-the-art competition center built in partnership with the Iowa City Community School District. High school and middle school teams will use the new facility, allowing Liberty High and West High to each have their own swim teams. The recreation center and indoor pool were first master planned for replacement in 2004 and have been the number one goal in the last three goal setting sessions of the City Council. Local option sales tax will allow us to make this community priority a reality.
Affordable Housing
One-third of households in Johnson County spend more than 30% of their income on housing-related expenses, leaving them limited resources for other essential needs. People's access to housing is the foundation of opportunity in all other aspects of their lives with implications for their health, employment, and education.
Stable, affordable homes strengthen Coralville for everyone—workers, families, seniors, and local businesses alike. A local option sales tax will provide a new funding source that allows the City to address our community’s housing needs.
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Property Tax Relief
Since 2019, state law requires any city that passes a local option sales tax to designate 50% of the revenue for property tax relief. In Coralville, this property tax relief will be achieved by offsetting property tax increases that would have been necessary to fund the new recreation center and other important community projects.
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Vote Yes on November 4
These aren’t “wish list” items – they are critical investments in identified needs that will directly benefit our community. Visitors spend millions of dollars in Coralville every year, and a local option sales tax helps ensure a portion of that helps fund vital, local projects.
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Vote Yes for local option sales tax on November 4.
Coralville FAQs
What is a local option sales tax?
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A local option sales tax is a funding mechanism for cities in Iowa to help pay for projects, initiatives, and property tax relief. The tax is one cent per dollar spent on most sales and services, with some exceptions. The 6% sales tax that is currently collected at stores and restaurants in Coralville is retained by the State of Iowa.
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Who pays the tax?
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If approved, anyone who shops in Coralville will contribute, including non-residents and visitors.
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How will the sales tax revenue be spent?
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In Coralville, 50% of the proceeds will be designated for property tax relief and 50% will be used for capital projects, programs, and initiatives. A priority for funding is a new recreation center in S.T. Morrison Park. The proposed recreation center would include a walking track, gymnasium, cardio and weight equipment, and community meeting rooms.
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The project also includes a partnership with the Iowa City Community School District for two natatoriums, with one focused on competition swimming and one for recreation, lap, instruction, and leisure swimming. See www.coralville.org/recreationdestination for more information on the recreation center.
How will this vote impact my property taxes?
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As required by state law, 50% of local option sales tax revenue will be designated for property tax relief. This property tax relief will be achieved by offsetting property tax increases that would have been necessary to fund the new recreation center and other important community projects.
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If the 1% sales tax increase does not pass, the Coralville property tax levy rate would need to increase by $0.7964 per $1,000 to cover the cost of a new recreation center, which is a priority of the City Council.
Do any other cities in Iowa have a local option sales tax?
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Yes, 93% of cities in Iowa have a voter-approved local option sales tax. This includes several cities in Johnson County. Coralville residents pay a local option sales tax when visiting Cedar Rapids, Davenport, Des Moines, and most other cities in Iowa.
What about North Liberty and Iowa City?
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Voters in North Liberty and Iowa City will also have the opportunity to approve a local option sales tax on November 4. Each city has unique ballot language and would use tax revenues differently based on their priorities. Each city’s voters will determine whether the tax is collected in their community.
How much revenue will be collected?
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Local option sales tax revenue collected in Coralville will be distributed among all cities in Johnson County that approve the tax. The distribution among the cities is based on a formula set by the state. Estimates of Coralville’s share of the tax range from $2.9 million to $7.3 million annually, depending on the number of cities that pass the tax.
When will the tax be collected?
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If approved, collection of the one-cent tax will begin July 1, 2026.
What is taxed?
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Sales and services are taxed, with the exception of utilities, groceries, prescription medications, medical devices, industrial machinery, vehicle registration, educational materials, construction services, and internet access services.
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When and where can I vote?
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Vote during the regular city and school election on Tuesday, November 4, at regular polling places from 7:00 am to 8:00 pm. To learn about early voting by mail or in person, or find your polling place, call the Johnson County Auditor at 319.356.6004 or visit https://www.johnsoncountyiowa.gov/auditor/elections
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