Local Option Sales and Services Tax

Ankeny will hold a special election on Sept. 8, 2026 for residents to decide whether to adopt a 1 cent Local Option Sales and Services Tax (LOSST). 

Revenues from the sales and services tax are to be allocated as follows:

  • Fifty percent (50%) for property tax relief; and
  • Fifty percent (50%) of such revenues for capital projects, including street improvements, park and trail improvements and recreational facilities, public infrastructure, public safety equipment, public facilities; or debt retirement.

What is Local Option Sales and Services Tax? 

  • LOSST is a 1% sales tax that cities and counties can adopt with voter approval.
  • A special election must be held in Ankeny to approve local option sales tax. A majority plus one vote is required to pass the referendum.
  • If approved, sales tax in Ankeny would rise from 6% to 7%
  • Everyone who spends money in Ankeny would pay the 1% sales tax, including residents and the thousands of visitors to Ankeny.
  • Everyday necessities like groceries, rent, utilities, prescription medicine, vehicles and gas would not be taxed under LOST. These items are already exempt from sales tax. A complete list is available at the Iowa Department of Revenue's Sales & Use Tax Guide. 

Why is Ankeny considering LOSST?

  • We have the lowest City property tax rate in the metro. That’s a point of pride, but it also means we collect less revenue to maintain streets, parks, trails, and public safety equipment compared to surrounding cities.
  • It takes pressure off property taxes. Right now, we fund most major projects through property taxes. Adding LOSST gives us another funding source, so Ankeny homeowners and businesses aren’t carrying the full load.
  • Everyone who spends money here helps support the services they use. LOSST captures revenue from visitors, commuters, and shoppers who drive on our roads, attend our events, and use our parks and public safety services.
  • LOSST is a more balanced, stable way to plan for growth. Ankeny continues to grow quickly, and a broader mix of revenue helps us keep up with infrastructure and community needs.
  • Ankeny is facing a challenging financial environment. State property tax reform passed in 2023 reduced revenues available to cities, while the cost of maintaining services and infrastructure has risen with inflation.
  • We’re the only city in Polk County without LOSST and 99.5% of Iowa’s more than 940 cities already use LOSST.
  • When Ankeny residents shop or spend money in other cities in Iowa, their sales tax helps fund projects and reduce property taxes in those communities. Right now, visitors who spend money in Ankeny do not help pay for Ankeny projects, services, or property tax relief.
  • Ankeny’s taxable sales per resident are 26% above the statewide average, demonstrating Ankeny is a regional retail center regularly drawing shoppers from outside our city.

What impact could LOSST have on Ankeny?

  • An estimated $11.8 million would have come to Ankeny in FY 2025 if LOSST had been in place.
  • Half of that revenue would have been paid by people who don’t pay property taxes in Ankeny.
  • Using current estimates, the City’s tax rate would decrease by approximately 90 cents per $1,000 of assessed value as soon as FY28 if LOSST is approved.

The FY28 projected budget shows a need for the City’s first property tax increase in X years, and increase the following X years.  LOSST funds would eliminate the need for these projected property tax increases. 

How can LOSST revenue be used?

State law sets the structure, Ankeny City Council approved the details.

  • Required: 50% for property tax relief

 Remaining 50% may support:

  • Street improvements
  • Park and trail projects
  • Recreation facilities
  • Public infrastructure and public facilities
  • Public safety equipment
  • Debt retirement

How LOSST works in Polk County

  • LOSST is collected countywide and placed in a special fund.
  • Funds are distributed to cities based on population and property tax dollars levied.
  • Every city in Polk County (except Ankeny) already receives LOSST revenue.

What is the timeline?

  • Dec. 15, 2026 – Council approved ballot language
  • July–Sept. 2026 – Public education period
  • Sept.8, 2026 – Special election
  • Jan. 1, 2027 – LOSST goes into effect if approved