The Facts on Local Option Sales Tax

• LOST is a 1% sales tax on the purchase of goods and services within the City of Grinnell.
• The percentage of sales tax paid will not change. Sales tax in Grinnell will remain at 7%.
• The City of Grinnell has had a Local Option Sales Tax in place since July 1, 2007, which will remain in effect until June 30, 2027. The Grinnell City Council is asking voters to renew this 1% Local Option Sales Tax at the November 4, 2025 election.
• LOST is not collected on utilities, groceries, prescription medications, medical devices, industrial machinery, vehicle registration, educational materials, construction services, internet access services, or room rentals at lodgings that pay Hotel/Motel tax.
• Who pays? Everyone pays the tax when they purchase a taxable item within the city limits. This includes tourists, visitors, renters, and anyone else who spends money in Grinnell.

The renewal of the Local Option Sales Tax will continue to enable the city of Grinnell to fund capital improvement projects like street improvements, park and trail improvements, economic development, and other community betterment projects without increasing property taxes.

How has LOST been used in Grinnell?

	Parks and Recreation Construction of the Grinnell Mutual Family Aquatic Center Lazy river and high dive repairs Lion's Park development Skate park development
	Drake Community Library Construction of the Drake Community Library building Accessible computer station
	Public Safety Construction of the Public Safety Building Ambulances EMS staff
	Public Services Street reconstruction and repair: 4th Avenue, Park Street, Sunset Street, 8th Avenue, North Streets Inlay project Central Business District: downtown planters, masonry, and sidewalk repair
Other Façade improvements Water system improvements Small business development and incentives Grinnell Housing Market Assessment and Comprehensive Plan

Future Projects Funded by Local Option Sales Tax

• 39 blocks/15252 linear feet of street reconstruction
• Restoration of Arbor Lake and Lake Nyanza
• Implementation of the Master Park Plan
• Replacement of 2002 Spartan Fire Pumper Truck

Ballot Language

The ballot language for Grinnell states:
Fifty percent (50%) for the design, construction, repair, reconstruction, operation, and maintenance of city public infrastructure including, but not limited to, the water system, the sanitary sewer system, streets, storm sewers, and sidewalks; and Fifty percent (50%) for parks, recreation, public safety, community development, or any lawful purpose as determined by the City Council. 

More information about Local Option Sales Tax is available from the Iowa Department of Revenue.