The Ottumwa Courier

Local News

August 9, 2012

Debating the Local Option Sales Tax

Forum to be held this fall regarding renewal of the 1 percent sales tax

OTTUMWA — The vote is still three months away, but the League of Women Voters is preparing a panel forum surrounding the Local Option Sales Tax.

The 1 percent sales tax, referred to as LOST, is up for renewal this fall. The tax has been in effect in Ottumwa since 1998 and is supposed to sunset in 2015, but the renewal would extend it to 2025.

The forum has tentatively been set for Nov. 1, the Thursday before the general election.

“We have tentatively planned to have the candidate forum, then a forum with some of the administrators in Chillicothe, Eldon, Blakesburg, the municipalities that depend on LOST financing, as well as those in Ottumwa,” said Jean Dell, voter services coordinator for the LWV.

City Finance Director Bob Jay previously told the Courier that 10 percent of the funds raised from the tax will go toward property tax relief, with the other 90 percent going toward streets and sewers.

The city has said that the renewal of the tax is necessary in order to keep sewer rates as low as possible and to continue to fund street and sewer repairs. Opponents have argued that the tax is misused.

Approximately $3.1 million will be raised through the tax, $2.79 million of that heading directly to the city’s Expanded Street Repair Program and the continuing EPA-mandated sewer separation project.

In the past, the sales tax has been used to retire Bridge View Center bonds, with the remaining revenues going toward street and sewer projects.

Dell said she has seen a lot of negative reaction regarding the sales tax, with several calling for citizens to vote “no” to renew the tax.

“The reality of life is we need that money to be able to maintain our community,” Dell said.

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