Muscatine passes local-option sales tax

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By Times Staff | Thursday, August 14, 2008 12:32 AM CDT | () comments

MUSCATINE, Iowa — For the next 10 years, people who buy goods and services in Muscatine County will pay a 1 percent local-option sales tax after voters agreed to renew it this week.

The tax was first instituted in 1994 and has been renewed in elections since then. Tuesday’s vote extends the tax from July 1, 2009, until June 30, 2019.

The tax will benefit the city of Muscatine by providing money for two federally mandated projects to separate storm and sanitary sewers by 2024. One project is under way in the Oak Street area, and two more — in the West Hill and Hershey Avenue areas — must be completed by the deadline. Also, 20 percent would go to the Pavement Management Program to help maintain streets.

Unincorporated areas will benefit through property tax relief.

In Fruitland, some of the tax revenue will be used to pay for the new Fruitland Community Center. The tax will be divided between three funds: 10 percent for infrastructure, 20 percent to sewer and water and 70 percent to building.