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D.M. receives $38.1 million in first year of local option sales tax


The city of Des Moines received $38.1 million from the local option sales and service tax during the first year the tax was in place, according to a report provided to the City Council.

Des Moines voters in March 2019 approved the 1-cent tax that the city is using for property tax relief and to pay for new or expanded infrastructure, public safety enhancements and neighborhood improvements. 

The breakdown of how money raised from the tax in the fiscal year that ended June 30 was used includes: 
$19 million toward property tax relief. The city’s property tax rate was lowered by 60 cents to $16.64 per $1,000 of assessed valuation.
$5.55 million toward street and stormwater improvements. Included in the street improvement projects was the rehabilitation of Hubbell Avenue between East 18th Street and Easton Boulevard, which included constructing missing sidewalk connections, new overlay of hot mix asphalt and storm sewer improvements. Also, Martin Luther King Jr. Parkway was resurfaced between Hickman Road and Euclid Avenue.
$3.65 million toward neighborhood improvements. Library hours were expanded. The city began a program called Blitz on Blight that removed dilapidated projects from neighborhoods. In addition, the city launched a new redevelopment program in four neighborhoods.
$1.3 million toward public safety. The money was used to hire additional firefighters.
$8.5 million in reserves.

To read a detailed report on how Des Moines used local option sales tax money, click here.

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