CR approves Sales Tax for Flood Victims

Cedar Rapids approves local-option sales tax
By Rick Smith
The Gazetterick.smith@gazettecommunications.com
CEDAR RAPIDS - Voters have approved a 1-percent local-option sales tax, 58 percent to 42 percent with 75 percent of the vote in, in a decision that adds a local tax to help flood victims despite tough economic times.Also, defeats of the tax this evening in Marion, Hiawatha and Robins mean more revenue for Cedar Rapids flood victims.The tax will be in place five years and three months beginning April 1. It is expected to bring in about $18 million a year.Ninety percent of the revenue will be used for flood relief, specifically for housing buyouts and repair.Ten percent of the revenue will be used for property-tax relief.Backers of the tax, which joined in an effort called Vote YES! For Our Neighbors, said the city's flood recovery depended on it. The sales-tax revenue, backers said, will help flood victims and will show the city is willing to help itself. The local commitment will strengthen the city's ability to ask for federal and state disaster funds, backers said.Opponents, led by a group called Cedar Rapids Tea Party, said the city should cut its budget to find money to help in flood recovery. A time when people are losing jobs isn't the time to raise taxes, opponents said.There was some thought, too, that the sales-tax vote would serve as something of a referendum on the performance of Mayor Kay Halloran, her City Council colleagues and City Manager Jim Prosser.By way of comparison, about 70 percent of Cedar Rapids voters approved the sales tax in July 2001, when it was approved for one year to build new swimming pools.Even so, Paul Pate defeated incumbent Mayor Lee Clancey four months later.Voters in Cedar Rapids rejected a sales tax in 2003 that would have provided funds with the RiverRun redevelopment project, which featured an outdoor kayak course.