Local Option Sales Tax (LOST) - What Ankeny Voters Will Decide

On September 8, 2026, Ankeny voters will decide whether to adopt a 1% Local Option Sales Tax, often called LOST. If approved, Ankeny’s sales tax rate would rise from 6% to 7% beginning January 1, 2027. The measure requires a majority-plus-one vote to pass.

The ballot language says the revenue would be split two ways: 50% for property tax relief and 50% for capital projects, including street improvements, park and trail improvements, recreational facilities, public infrastructure, public safety equipment, public facilities, or debt retirement.

The tax would apply to taxable retail sales and services in the city, but not to items already exempt from sales tax, such as groceries, rent, gasoline, prescription medication, and vehicles.

Why the city council/city officials support it

City officials are making several arguments in favor:

Property tax relief
State law requires part of LOST revenue to be used for property tax relief, and Ankeny’s proposal dedicates 50% of revenue to that purpose. The city says approval is projected to reduce the city property tax rate by about 6% and keep it steady through fiscal year 2032; without it, the city projects the rate could rise by about 5% over eight years.
Funding infrastructure and growth needs
The other half of the revenue would go toward capital needs such as streets, parks, trails, recreational facilities, public infrastructure, public safety equipment, public facilities, and debt retirement. The city frames this as a way to keep up with Ankeny’s growth and infrastructure demands
Ankeny is unusual in not already having LOST
The city says Ankeny is the only city in Polk County without a local option sales tax and one of only a few cities statewide without one. City officials argue that Ankeny residents already pay LOST when shopping in neighboring communities, but shoppers coming into Ankeny currently do not pay a local sales tax to help fund Ankeny services.
Nonresidents would help pay
The city estimates LOST would generate more than $12 million annually, with about half of Ankeny sales tax revenue coming from nonresident shoppers. That is a key pro-tax argument: visitors, commuters, and regional shoppers who use Ankeny roads, parks, and services would help pay for them.
A broader revenue base amid tighter budgets
The city says state property tax reform passed in 2023 reduced revenue available to cities while inflation has increased the cost of maintaining services and infrastructure. LOST is being described as a more balanced and stable revenue source than relying mainly on property taxes.

Is there opposition?

Not really. There are arguments against LOST in general, but not a clearly organized opposition campaign.

The main opposition arguments are likely:

It would raise the cost of taxable purchases in Ankeny from 6% to 7%.
Sales taxes can be viewed as regressive because lower-income households may spend a larger share of income on taxable goods.
Some residents may prefer Ankeny to keep its current lower sales tax as a competitive advantage.
Ankeny voters have previously declined to adopt a local option sales tax, suggesting there has been voter resistance to the idea in the past.

Bottom line

The proposal is essentially a tradeoff: raise Ankeny’s sales tax by 1 percentage point in exchange for property tax relief, infrastructure funding, public safety and parks/trails investment, and revenue from nonresident shoppers. Supporters emphasize shared costs and property tax relief; opponents or skeptics are likely to focus on the higher sales tax burden and whether the city should preserve its lower-tax status.