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Sales taxes went up today in Des Moines & surrounding cities

News

July 1st, 2019 by Ric Hanson

(Radio Iowa) — Shoppers in and around Des Moines are now paying more taxes on most purchases. In March, voters in Des Moines and several surrounding cities approved a one-cent local option sales tax which went into effect today (Monday). Des Moines City Manager Scott Sanders says some of the money raised will be used tear down abandoned homes that are neighborhood eyesores.

Sanders says, “By simply removing that negative aspect, the rest of the neighborhood can breathe a sigh of relief, if you will, and just feel that much more secure, even, in an investment they’ve made in their homes.” The tax is expected to collect an additional 48-million dollars in revenue across the metro area, with half of the money going to offset property taxes. About 37-million dollars will be going to the city of Des Moines and Sanders says that money has already been worked into the city budget.

“The property tax rate was reduced by 60 cents,” Sanders says, “and so there will be a reduction in the taxes that are paid this fall by Des Moines residents.” Sanders says nearly all other cities and counties across the state already charge the local sales tax. Many basics like prescriptions, groceries and gas are exempt. Altoona, West Des Moines, Windsor Heights, Pleasant Hill and Alleman are also part of the penny sales tax boost. Another group of cities including Clive and Johnston plan to vote on their own increase in August.