ANKENY – Residents of one of the last Iowa cities without a local-option sales tax will decide September 8, 2026, whether to raise Ankeny’s sales-tax rate from 6% to 7% and generate an estimated $12 million or more annually for property-tax relief and public projects.
The proposed 1% Local Option Sales Tax, commonly called LOST, would take effect January 1, 2027, if approved by a majority of voters participating in the special election.
The tax would add $1 to a taxable $100 purchase and $10 to a taxable $1,000 purchase.
It would generally apply to purchases and services already subject to Iowa sales tax, including restaurant meals, most retail merchandise and certain taxable services.
Groceries intended for home consumption, rent and mortgage payments, gasoline, prescription medications, vehicles and other purchases already exempt from the tax would remain exempt.
Local-option sales taxes are overwhelmingly common across Iowa.
The City of Ankeny reports that approximately 99.5% of Iowa’s more than 940 incorporated cities already impose the tax. Ankeny is one of only five Iowa cities without it and the only community in Polk County that does not currently collect the additional 1%.
Several of Iowa’s largest cities have used LOST for years. Iowa City, Coralville, North Liberty and two smaller Johnson County communities became some of the most recent additions when voter-approved taxes took effect July 1, 2026.
Mason City also collects the tax and most recently asked voters to renew it in 2022.
Ankeny’s proposed division closely resembles the Mason City arrangement.
The September ballot dedicates 50% of the revenue to property-tax relief. The remaining 50% would finance capital projects, including street work, parks, trails, recreational facilities, public infrastructure, police and fire equipment, public buildings or debt retirement.
Based on the city’s annual projection, approximately $6 million would be available for property-tax relief and another $6 million for projects and equipment.
City officials estimate approximately half of the money collected would come from shoppers who live outside Ankeny.
Ankeny serves as a major retail center for the northern Des Moines metropolitan area. The city says its taxable sales per resident are approximately 26% higher than the statewide average, reflecting the volume of commuters, visitors and shoppers who spend money there.
Supporters of the proposal argue LOST would make those nonresident customers help pay for streets, public-safety services and other infrastructure they use while visiting Ankeny.
Without the tax, those expenses are funded more heavily by Ankeny property owners.
The city projects approval would allow its property-tax rate to fall by approximately 6% and then remain relatively steady through fiscal year 2032.
For a typical homeowner, the city estimates savings of about $25 annually for every $100,000 of property value. A home valued at $300,000 would therefore see an estimated city property-tax reduction of approximately $75 per year.
Those estimates apply only to the City of Ankeny’s share of a property-tax bill. They do not include levies imposed by the school district, Polk County or other taxing authorities.
If voters reject LOST, the city projects its property-tax rate will increase approximately 5% over the next eight years as Ankeny continues financing growth and infrastructure needs through existing revenue sources.
The election arrives as property taxes remain a major political issue across Iowa.
Gov. Kim Reynolds signed a sweeping property-tax package in May that state officials project will save Iowa property owners $4.2 billion over six years. NIT recently reported that the Common Sense Institute ranked Iowa’s 2026 property-tax overhaul first nationally for reducing property-tax burdens.
That state legislation includes changes to homestead relief, school levies, local-government revenue growth and the amount of statewide sales-tax money directed toward property-tax relief.
Ankeny officials say earlier state property-tax changes reduced revenue available to cities while inflation and rapid growth increased the cost of maintaining roads, parks, facilities and emergency services.
The decision facing residents is therefore a tradeoff between two different tax sources: collecting more money when residents and visitors make taxable purchases or continuing to place greater reliance on property owners.
Two public information meetings remain before the election.
The first will be held from 5:30 to 6:30 p.m. Tuesday, August 25, inside the Ankeny City Council Chambers at 1250 SW District Drive.
A second meeting will take place from noon to 1 p.m. Wednesday, September 2, at the same location.
City representatives will explain the tax, discuss how the revenue could be used and answer questions from residents.
Only voters living within Ankeny city limits may participate in the special election.
Early in-person voting begins August 19 at the Polk County Election Office, 2309 Euclid Avenue in Des Moines. Requests for absentee ballots must be received by 5 p.m. August 24. The final day for early in-person voting is September 4.
Election Day polls will be open from 7 a.m. to 8 p.m. Tuesday, September 8.