On August 6th Clive voters who live in Polk County will decide if a 1% Local Option Sales and Services Tax (LOSST) should be added to the sales tax rate, increasing the total rate to 7%. If approved, the City of Clive would receive an estimated $1.7 million annually to use for property tax relief, public safety facilities, streets improvements, Clive Greenbelt improvements, and stormwater management. Scroll down for more information about these projects, how to vote, and answers to frequently asked questions.
The City Council has identified a new public safety building as a top priority to keep Clive safe and support our first responders. If LOSST does not pass, the Clive property tax levy rate will need to increase by $0.65 per $1000 of valuation to cover the cost of the new facility.
Clive is a growing city with growing public safety needs. The current public safety building was designed to serve a population of 11,000. Clive’s population today is over 18,000 and is expected to grow to approximately 24,000. Also, based on the standards of coverage study the City completed in 2017, Clive Fire Station 32 needs to move west and closer to a major arterial road to maintain excellent response times and implement closest unit response agreements with neighboring cities. Land acquisition and construction costs for the facility are projected to be $15.25 million. The new facility will be located at 8800 Hickman Road, the former location of Slumberland Furniture. Click here for more information about property taxes in Clive. Click here for more information about the new Clive public safety facility.
The City has prioritized building and maintaining high quality streets throughout Clive.
In 2018 the City completed a street pavement conditions study that identified dozens of streets that need rehabilitation and in some cases complete reconstruction. Based on that research, the Council has determined that annual spending needs to increase from $1.5 million to $3 million to meet these goals. Click here for more information on Clive’s pavement rehabilitation work.
In 2016, the City completed its Greenbelt Master Plan which identified millions of dollars in Clive Greenbelt maintenance and improvement needs over the next 20 years.
Three of the priority projects are enhancing Greenbelt Landing (the area north of the Clive Aquatic Center including the Special Events Building), replacing the Campbell Park trail bridge, and updating facilities at Porter Shelter. Together these three projects will cost over $13M. For more information about these projects, click here.
Strong storm water management is essential to protecting property and lives, and creating a sustainable future for multiple Clive neighborhoods.
The City is actively managing the Walnut Creek floodway to protect public infrastructure, homes, and businesses. Annually, the City spends $450,000 on storm water operating activities and $500,000 on storm water capital projects. In the future, the demand for storm water capital improvement funding will be in excess of $1 million annually. Click here for more information.
Voters in the Dallas County part of Clive approved LOSST in 2017, which means currently the sales tax rate in the western half of the city is 7% and in the eastern half it’s 6%. If voters approve LOSST in August, the sales tax rate will be the same throughout Clive.
Voters in Des Moines, West Des Moines, and Windsor Heights approved LOSST this spring. As of July 1st, Clive residents who shop in these cities have been paying the tax, but the revenue will only come back to Clive if voters approve LOSST. If voters do not approve LOSST, the revenue will go to the cities in Polk County that have passed it.
Approximately 48% of the sales taxes collected in Clive are paid by people visiting the City.
On August 6th, voters will decide if a 1% Local Option Sales and Services Tax (LOSST) will be added to eligible sales in the Polk County portion of Clive. LOSST was approved by Dallas County voters in 2017, so only Clive voters in Polk County will be participating in the August election. If approved, the sales tax rate would increase from 6% to 7% in the Polk County part of the City. The rate is already 7% in the Dallas County part of Clive.
Earlier this year, voters in Des Moines, West Des Moines, Windsor Heights, and three other cities in Polk County approved LOSST. Clive residents and others who shop in these neighboring communities will be paying the increased sales tax starting July 1st, but the City of Clive will only receive a share of Polk County LOSST revenue if voters approve the tax in August.
According to the Iowa Department of Revenue, Clive would receive $1.7M annually from Polk County LOSST. The City would use those funds for:
Clive is a growing city with growing public safety needs. The current public safety building was designed to serve a population of 11,000. Clive’s population today is over 18,000 and is expected to grow to approximately 24,000. The City Council has studied public safety needs over the past five years and has determined that a 40,000 square foot facility shared by the Clive Police and Fire Departments is the most efficient and cost-effective strategy. Land acquisition and construction costs for the facility are projected to be $15.25M.
This is an important decision for Clive residents and businesses. The City will be sharing additional public education information about the proposed use of LOSST funds in the coming weeks at cityofclive.com.
On April 25, the City Council scheduled a special election for voters to decide if a 1% Local Option Sales and Services Tax (LOSST) should be added to eligible purchases in the Polk County portion of Clive. The special election will be on Tuesday, August 6th. LOSST was already approved by Clive voters in Dallas County, so only Clive voters in Polk County will be participating in this August election.
The question on the ballot reads:
To authorize imposition of a local sales and services tax in the City of Clive, Iowa at the rate of one percent (1%) to be effective January 1, 2020.
Revenues from the sales and services tax shall be allocated as follows:
For the City of Clive: Fifty percent (50%) for property tax relief.
The specific purposes for which the revenues shall otherwise be expended are:
Fifty percent (50%) for capital projects including, but not limited to, street improvements, Clive Greenbelt Park and Trail improvements, storm water management improvements, and public safety facilities.
No other questions are on the ballot.
Any eligible voter in the Polk County portion of Clive may participate on or before August 6th.
Election Day is Tuesday, August 6th. Polls are open from 7:00am to 8:00pm. You can request an absentee ballot or stop by the Polk County Auditor’s office to vote early. Click here to visit the Polk County elections page for more information about early voting and poll locations.
Please reference Polk County voter information here for information about voting early in-person or by mail.
Yes, 50% plus one vote of the votes cast is necessary for passage.
If the 1% sales tax increase does not pass, the Clive property tax levy rate may need to increase to pay for the new public safety facility. If the Council chooses to pay for the facility only using property taxes, the levy rate would need to increase by $0.65 per $1000 to cover the cost of a new facility.
The Local Option Sales Tax is paid based on point of delivery retail sales. That means anyone purchasing eligible products or services in the Polk County portion of Clive--including visitors from outside the area--would pay the tax. Eligible products and services purchased in the Dallas County portion of Clive already include the LOSST tax. Voters in Des Moines, West Des Moines, Altoona, Windsor Heights, Pleasant Hill, and Alleman approved LOSST in March 2019. The additional 1 cent sales tax will start being collected in those Polk County cities this July.
According to the Iowa Department of Revenue, Clive would receive $1.7M annually from LOSST taxes collected in Polk County. Currently, the City receives approximately $800,000 annually from LOSST taxes collected in Dallas County.
Yes, according to the Iowa Department of Revenue over 93 percent of communities in Iowa have a Local Option Sales Tax. Dallas County voters passed the Local Option in November 2017, and voters in multiple Polk County cities—including Des Moines, West Des Moines, and Altoona—approved the tax in March 2019. This means Clive residents are already paying Local Option Sales and Services Tax in many communities they visit in the Des Moines Metro and across the state.
Revenue from the Local Option Sales Tax will help Clive hold the line on property taxes and provide additional funding for capital projects, including:
Yes, 50% of LOSST funds collected in Dallas County are used for property tax relief. The remaining 50% may be used for capital projects including, but not limited to, street improvements, park and trail improvements, public safety facilities, and storm water improvements.
Yes, Local Option Sales Tax votes were held in Polk County in March 2018 and March 2019.
No, any person—regardless of where they live—who purchases eligible products and services in the Polk County portion of Clive would pay the additional 1% tax if approved. This includes residents of other cities in Polk County, residents of other Iowa counties, and visitors to the City. According to the Retail and Trade Analysis Report for FY 2018 prepared by Iowa State University, 48% of sales taxes generated in Clive comes from purchases made by visitors to Clive.
Clive residents would pay an additional one percent sales tax on eligible goods and services purchased in the Polk County portion of Clive. Assuming a family spends about 80% of its money in cities with the 1 cent LOSST tax, Iowa State University economist Dave Swenson estimates:
Dallas County residents of Clive already voted and passed the Local Option in November 2017.
If approved, the Local Option Sales Tax would become effective starting January 1, 2020.
No, LOSST would only be applied on purchases that are currently subject to sales tax. Food and prescription drugs are exempt from sales tax in Iowa.
No. LOSST is collected based on where goods are purchased or services are performed. The State of Iowa gathers LOSST funds and distributes them back to the counties where the purchases occurred. Funds are then distributed within the county using a formula that accounts for each eligible city’s percentage of the county population and property taxes levied.