Local Option Tax
Quality of Life Projects
Infrastructure Improvements/Tax Relief
Myths vs Facts/FAQ’s
LOCAL OPTION TAX
A referendum on September 13, 2022, will ask residents of Pella to extend the Local Option Sales & Service Tax (LOSST)*, which will provide funds for infrastructure (property tax relief) and quality of life projects for another 20 years. View ballot
In 2001, voters approved a one-cent LOSST for ten years and then in 2011, voters extended the LOSST for 12 additional years. Since the LOSST inception in 2001, through December of 2023, an estimated $29.1 million of revenue will be collected. Also, during the 10 year timeframe, approximately 50% will be used for street projects and 50% for quality of life projects in Pella. If extended, the citizens of Pella and our visitors will contribute to the one-cent option tax. The one-cent option tax is applied to retail sales*.
Visitors to our community account for more than 50% of the retail sales, which helps fund the projects our residents enjoy.
The Pella City Council will direct more than an estimated $35 million in upcoming Local Option Sales and Services Tax (LOSST) revenue to:
- Infrastructure Improvements (Property Tax Relief)
- Quality of Life Projects
*The tax does not apply to things such as groceries, gas or prescription drugs, as determined by the Iowa Department of Revenue.
**Placer Labs Inc. Geofence Data on downtown Pella, Nov 1, 2020-Feb 21, 2022 via Retail Coach
