Local Option Sales & Service Tax

In August 2019, 79.96 percent of voters in Bondurant approved a one-cent Local Option Sales & Service Tax to be used for property tax relief, public infrastructure upgrades, and capital needs.

The new tax went into effect on Friday, January 1, 2020. The tax does not apply to things such as groceries, gas, or prescription drugs, as determined by the Iowa Department of Revenue.

An estimated 33% percent of revenue will be generated by visitors to Polk County. Each year, the City publishes its audit report for public review, which identifies Local Option Sales and Services Tax revenues and expenditures.

Bondurant City Council's resolution adopting the LOSST terms included dedicating 60% of revenue towards property tax relief and 40% towards capital needs. Following is how the City has used the incoming revenue to date:

• PROPERTY TAX RELIEF — By state law, 50 percent of the new sales tax revenue must go toward property tax relief and Bondurant City Council chose to increase that amount to 60%. After receiving approval from voters, Bondurant City Council reduced the City’s property tax levy rate by $1.95. (Previously, the City had been working to lower its levy rate by $0.05 each year.)
• CAPITAL NEEDS — The City is committed to using Local Option revenue to invest in our community needs throughout Bondurant. The first capital project supported by the Local Option Sales and Service Tax is the expansion and renovation of the Bondurant Community Library (BCL) and City Park renovation. BCL will nearly double in size to meet the needs of its patrons.

The City of Bondurant is committed to pursuing public projects, services, and initiatives that will provide the most benefit to residents, businesses, and community organizations.

Given that prior to the August vote, Bondurant residents were paying the LOSST in most cities throughout the region who had already adopted it; it is exciting to see the benefit come home to Bondurant!

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