Cities show interest in local-option tax

Cities show interest in local-option tax

Regressivity rears its ugly head again:

Most Iowa City and Coralville city council members prefer a 1 percent local-option sales tax that shares revenue with the cities if the Iowa City school board decides to pursue a tax, Gazette interviews revealed.

Council members said they don’t know what voter support exists to add a local tax to the state’s 5 percent sales tax. Johnson County’s last attempt failed in 1999 when 74 percent of voters rejected it.

‘‘I believe, because cities are in such straights with their budget, there will probably be general interest in further exploration,’’ said Iowa City Council member Regenia Bailey.

Iowa City Council member Mike O’Donnell said he hopes feelings have changed. He said he’d support splitting local sales tax revenue between schools and local governments.

Iowa City Council member Dee Vanderhoef said cities would have to identify clearly how they’d spend the tax revenue to have any chance of success with voters. Vanderhoef said she is undecided on the local tax and wants to see the outcome of a bill in the Legislature to impose a statewide local sales tax for schools — a tax already collected in every county but Linn and Johnson.

Good story, Zack, but how about a little sidebar with a roll call of quotes from everyone? (Coralville: Gill yes, Lundell maybe, Herwig read my lips.)

Local. Option. Income. Tax. Of course, that'll mean taking the legislature and the governorship...