Dallas County Residents Face Sales Tax Vote

WEST DES MOINES, IA —Dallas County voters will decide next week whether to join the 93 other counties in Iowa that have a countywide local-option sales tax. A vote is scheduled Nov. 7 and the outcome will determine whether sales tax should increase by one cent per dollar on sales and services.

But in some communities, the tax could receive voter approval and still fail. While Iowa Code requires passage on a simple majority of 50 percent plus one vote among individual cities voting, cities that share borders vote as a bloc. That means voters in four Dallas County cities — Clive, Urbandale, Waukee and West Des Moines — all have to pass the local-option sales tax vote for it to take effect in any of those areas.

Based on 2016 data from the Iowa Department of Revenue, 1,277 of Iowa's 1,373 communities already have passed a local-option sales tax. Dallas and Polk counties are the largest counties without the majority of cities collecting a local-option sales tax. Only five of Dallas County's 20 cities (Adel, Bouton, Dawson, Perry and Redfield) currently have the additional one-cent tax.

If the vote is approved throughout Dallas County, the estimated annual revenue collection from the penny tax would be $12.2 million, according to the state. West Des Moines would account for 62 percent of the sales tax revenue collected, followed by 19 percent in Waukee, 8 percent in Perry and 5 percent in Adel.

But those communities would not keep the amount collected within their borders. The sales tax goes to the state, which returns it to communities using a formula that allocates 75 percent based on the most recent certified census population and 25 percent based on the amount of property taxes levied within the county during a period in the 1980's. That would result in 27 percent of the revenue going to unincorporated areas in Dallas County, 16 percent to Waukee, 13 percent each to Perry and West Des Moines, 7 percent to Urbandale, 6 percent to Adel, 5 percent to Clive, 2 percent to Dallas Center and 11 percent combined to all other communities.

In addition, communities that are located within more than one county — Clive, Grimes, Urbandale and West Des Moines — could only spend that money in the Dallas County portions of the community.

Each of the communities was required to declare how the money would be used. The contiguous communities have determined that 50 percent of the revenue would be dedicated to property tax relief. For the remaining 50 percent, the spending would break down as follows:

• Clive: Capital improvement projects such as pavement improvements on existing roads; park and trail improvements (in particular the development of Angel Park and Berkshire North Parks and the extension of the Greenbelt Trail west of Alice's Road); public safety facilities, including the relocation of Fire Station No. 32 from Harbach Boulevard further west and remodeling of the Dymond Public Safety Center entirely for police use; and stormwater management throughout the community and streambank stabilization along Walnut Creek and its tributaries. Estimated annual revenue for the city would be $650,000.
• Urbandale: Capital improvement projects such as public safety facilities, an aquatic center, street improvements, park and trail improvements, stormwater improvements, and related debt retirement. Estimated annual revenue: $850,000.
• Waukee: Quality of life improvement purposes, including recreational/sports complexes, community center, trails, parks, arts, cultural amenities, historic preservation, and for public uses the city deems appropriate. The city has determined it could shave a 13-year park improvement plan to four years with sales tax revenue and those projects include the completion of Fox Creek Park Phase II, including the splash pad and play areas; the addition of Westown Meadows Park east of Southeast Willowbrook Drive and north of Southeast Tallgrass Lane; the completion of Waukee Dog Park's Phase II; and an additional $2 million investment in Waukee's Youth Sports Complex. It also plans to build a new public safety building by 2025 to handle growth and increasing needs of the police and fire departments and city officials said the sales tax revenue would alleviate the need to borrow or raise property taxes to fund that project. Estimated annual revenue: $2 million.
• West Des Moines: Applied directly to the construction of public parks and recreational facilities and trails, which includes the city's $32 million Five Waters project to connect five areas of the community that have water features with a marathon-length loop trail; public infrastructure construction; and public safety expenditures. Estimated annual revenue: $1.5 million.

Polls will be open 7 a.m. to 8 p.m. on Nov. 7. If the vote passes, the tax increase would begin July 1, 2018.

A failed vote would mean the issue cannot be placed on a ballot again for a full calendar year.

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