Local Option Sales Tax Facts

Muscatine Get the Facts


Special Election Tuesday, March 6
  • Find your polling place
  • Precinct locations
  • Sample ballot
  • Voter Registration deadline is February 23
  • Absentee Voting - Request absentee forms can be found on the Absentee Ballot page (requests must be received in the auditor's office by 5 p.m. on Friday, February 23)
  • Early In-Office Voting in Muscatine County Auditor's Office (414 E. Third Street) conducted from Monday, February 5 - Monday, March 5
  • Voter Identification is required


Recently the City of Muscatine asked the City Council to approve requesting a public vote on a 1% local option sales and service tax (LOSST).

Residents of Muscatine will have an opportunity to vote on Tuesday, March 6.

If approved, the City of Muscatine would receive approximately $2.7 million annually with 0% for property tax relief, not less than 80% for sanitary and storm sewer projects, and up to 20% for the Pavement Management Program.


How will this vote impact my property taxes?

Having the Local Option Tax in place to fund sanitary and storm sewer project costs and debt service for this project would mean that the City's property tax rate would not be impacted by the project and that sewer rates would also not be impacted.

What's on the ballot?

This is the language as it will appear on the ballot: "Shall the local sales and service tax be continued in the City of Muscatine at the rate of 1% to be effective July 1, 2019 until June 30, 2034? Revenues from the sales and service tax are to be allocated as follows: Not less than 80% for sanitary and storm sewer projects including principal and interest payments on debt issued for these projects; up to 20% for the Pavement Management Program; and 0% to property tax relief."

Who will pay this new sales tax?

The Local Option Sales Tax is paid based on point of delivery retail sales not including items such as groceries, gas, and prescription drugs. Anyone making a purchase at a retail business in Muscatine County would pay the new sales tax. For a full list of taxable services and products visit the Iowa Department of Revenue.

Is the election countywide?

The election is countywide, but the tax only applies in the incorporated areas (city) and the unincorporated area of the county where a majority vote in favor of the local option tax.

Do any other communities in Iowa have a Local Option Sales Tax?

Yes, according to the Iowa Department of Revenue 1,277 out of 1,373 (93 percent) communities in Iowa have a Local Option Sales Tax. This means that Muscatine County residents are already paying Local Option Sales Tax in many communities they may visit across the state.

If approved, when would the Local Option Sales Tax be implemented?

If approved, continuation of the Local Option Sales Tax would become effective July 1, 2019.


Additional questions and answers on Iowa's Local Option Sales Tax can be found on the Iowa Department of Revenue FAQs.