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Stores Get Ready for End of Iowa City's Local Option Sales Tax
IOWA CITY (CBS 2/ FOX 28)-- As stores get ready for the 4th of July mad dash, shoppers in Iowa City will notice something different on their receipts--extra cash.
The normal seven percent sales tax drops to six percent starting Monday.
"We'll basically have to learn all the sales numbers again, so that'll be an adjustment," said Theresa Rensimer a sales clerk at Revival clothing store.
Since 2009, the extra one percent was part of the city's local option sales tax. Money set aside for flood protection projects like raising flood-prone Dubuque Street and the Park Road Bridge.
The tax has helped the city raise more than $34 million.
"We brought in $3 million more than we expected," said city councilwoman Connie Champion.
But even so flooding in Iowa City is still a problem.
Four years later and North Dubuque Street is still at the same height. The street was closed for weeks after being flooded out after heavy rain.
The flooding caused the University of Iowa's Mayflower dormitory to be sealed with sandbags and made driving through the city more like an obstacle course.
But Champion says protecting the city against flooding won't happen overnight.
"We're still waiting for the environmental impact study," Champion said. "We can't do anything until that's done."
And while engineers work on that, shoppers say they'll enjoy their discount--even if it's just one percent.
"As a college student, that makes a big difference," said shopper Aubrey Coleman.