Revenue Split Proposed For Cedar Rapids Local-Option Tax Vote

By Rick Smith, Reporter

Tools

By Richard Pratt

Story Created: Feb 21, 2011 at 11:59 AM CDT

Story Updated: Feb 21, 2011 at 11:59 AM CDT

CEDAR RAPIDS, Iowa - Fifty percent for a flood-protection system on both sides of the Cedar River, 40 percent for street improvements and 10 percent for property-tax relief.

That is the proposal that the City Council will address on Tuesday evening for how it intends to use the revenue from a 1-percent local-option sales tax, should voters agree on May 3 to extend the tax 20 years beyond June 30, 2014, when the current tax is set to expire.

In January, the council voted to set a referendum for May 3 on the tax extension question, and at that time, the council was considering using 50 percent of the revenue for flood protection and 50 percent for street improvements. The tax brings in about $19 million a year at the current collection rate.

The Linn County Board of Supervisors actually sets the length of the tax-collection period on the referendum ballot, and the City Council’s proposed resolution asks the board to extend the tax for 20 years.

Voters put the current tax in place for 63 months, from April 1, 2009, through June 30, 2014. Ten percent of the current tax revenue must go for property-tax relief and 90 percent for flood-related matters. Specifically, the latter consists of acquiring and renovating flood-damaged residential property and using funds to match federal dollars coming to the city for flood recovery and flood protection.

Next Article Police: New Information on Human Remains Found in Southeast Iowa

Conversation Guidelines

Be Kind

Don't use abusive, offensive, threatening, racist, vulgar or sexually-oriented language.
Don't attack someone personally. Keep it civil and be responsible.

Share Knowledge

Be truthful. Share what you know and what you are passionate about.
What more do you want to learn? Keep it simple.

Stay focused

Promote lively and healthy debate. Stay on topic. Ask questions and give feedback on the story's topic.

Report Trouble

Help us maintain a quality comment section by reporting comments that are offensive. If you see a comment that is offensive, or you feel violates our guidelines, simply click on the "x" to the far right of the comment to report it.

read the full guidelines here »

Commenting will be disabled on stories dealing with the following subject matter: Crime, sexual abuse, property fires, automobile accidents, Amber Alerts, Operation Quickfinds and suicides.