Des Moines raises $38 million with new one-cent sales tax

Iowa News

DES MOINES, Iowa (AP) — Des Moines raised $38.1 million in the first year of a one-cent sales tax increase, but officials expect that to decline significantly in the next year because of the coronavirus pandemic.

City officials said sales tax revenue will decline because the retail and travel industries have been hit hard by restrictions related to the coronavirus.

Typically, spending by visitors accounts for roughly one-third of the city’s annual sales tax revenue.

Mayor Frank Cownie said the new sales tax that took effect in July 2019 helped the city make progress on projects that had previously been delayed because of a lack of funding.

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