Cedar Rapids Voters to Decide on 20-Year Tax Extension

Strategic Insights -

Cedar Rapids voters will head to the polls on May 3 to decide whether to extend the city's 1 percent local-option sales tax for 20 years to fund flood protection, street repairs, and property-tax relief. Mayor Ron Corbett has stated that the ballot language is "very tight and very specific," outlining how the tax revenue would be allocated: 50 percent for flood protection, 40 percent for street improvements, and 10 percent for property-tax relief.

Key Takeaways:

  • The ballot language for the May 3 referendum specifically allocates 50 percent of the tax revenue for flood protection, 40 percent for street improvements, and 10 percent for property-tax relief.
  • The current 1 percent sales tax brings in approximately $19 million to the city, which would translate to $190 million for flood protection, $152 million for street improvements, and $38 million for property-tax relief over 20 years.
  • Mayor Ron Corbett has stated that the city's preferred flood-protection system has an estimated cost of $375 million, which would be funded through a combination of local, state, and federal dollars.
  • The proposed tax extension would begin on July 1, 2014, and would be in place for 20 years.
  • A scientific survey conducted by Corbett in January showed that voters would be more inclined to approve the tax extension if some of the money went to fix streets and for property-tax relief.
  • The Linn County Board of Supervisors sets the length of the tax on the ballot measure, and the City Council's proposed resolution asks the board to extend the tax for 20 years.

Statistics:

  • The current 1 percent sales tax brings in approximately $19 million to the city.
  • Over 20 years at the current tax collection rate, the tax would provide $190 million for flood protection and $152 million for street improvements.
  • The preferred flood-protection system has an estimated cost of $375 million.
  • The proposed tax extension would begin on July 1, 2014, and would be in place for 20 years.

Sources:

  • "City's ballot language for tax extension is tightened up," The Gazette, Cedar Rapids, Iowa, February 22, 2011