Johnson County's biggest cities want a local option sales tax. What it means for you.

Voters in Iowa City, Coralville, and North Liberty will decide on a 1% local option sales tax in the upcoming November election. Under state law, 50% of the collected revenue must be used for property tax relief, while the remaining amount can be allocated at each city's discretion. Iowa City proposes to use its share for housing initiatives, community partnerships, and infrastructure improvements. In contrast, Coralville and North Liberty will maintain broader language in their proposals, allowing flexibility in spending. The tax will apply to most purchases, excluding essentials like groceries and gas.

Iowa City's tax is projected to generate $8-10 million annually, while Coralville and North Liberty expect $2. 9-$7. 3 million and $1. 71 million, respectively. Each city's tax will take effect on July 1, 2026, if approved by a simple majority of voters.

This measure differs from a failed 2014 levy attempt that combined multiple cities into a single voting block.