Ankeny Voters Will Decide on a 1% Local Option Sales Tax in September
Ankeny residents will head to the polls on September 8, 2026, to decide whether the city should implement a 1% Local Option Sales Tax (LOST).
If approved, the measure would increase the sales tax on most taxable purchases made in Ankeny from 6% to 7%. City officials estimate the tax could generate approximately $12 million per year, with revenue divided between property tax relief and city infrastructure projects.
For Ankeny homeowners, shoppers, and anyone considering a move to the community, here’s what you need to know.
What Is the Local Option Sales Tax?
Iowa currently has a 6% statewide sales tax on most taxable goods and services. Many communities throughout Iowa also collect an additional 1% local option sales tax, bringing the total sales tax rate in those communities to 7%.
Ankeny currently does not collect that additional 1%.
If voters approve the measure on September 8, most taxable purchases made within Ankeny would be subject to the additional 1% tax. Items that are generally exempt from Iowa sales tax, including qualifying groceries and prescription medications, would remain exempt.
Under the proposal, 50% of the revenue would be dedicated to property tax relief, while the remaining 50% could be used for capital projects, including road and infrastructure improvements.
Why Is Ankeny Considering the Tax?
Ankeny has experienced significant residential and commercial growth, transforming the community into a major shopping and employment destination within the Des Moines metro.
That means a substantial amount of spending within Ankeny comes from people who don't actually live in the city.
According to city officials, approximately 50% of Ankeny's sales tax revenue comes from visitors.
Costco is one example. Ankeny's Costco draws shoppers from throughout central Iowa, and approximately 70% of its sales tax revenue reportedly comes from shoppers who live outside Ankeny.
The city's argument for the proposal is that a local sales tax would allow visitors who use Ankeny's roads and infrastructure to contribute more directly toward those services, while reducing the city's reliance on property taxes.
The discussion also comes as Iowa cities adjust to changes in state law that limit future property tax revenue growth.
What Could It Mean for Ankeny Property Taxes?
Ankeny already has one of the lower municipal property tax rates in the Des Moines metro.
The city's current property tax rate is approximately $9.90 per $1,000 of taxable valuation.
If LOST is approved, city officials project reducing that rate to approximately $9.30 per $1,000 by fiscal year 2028.
According to the city's property tax calculator, an owner of a $300,000 home could see approximately $80 in annual property tax savings as a result of the proposal.
The actual impact for an individual homeowner would depend on factors including the property's assessed value and applicable taxable valuation.
What Would the Additional Sales Tax Cost?
For consumers, the change is straightforward: an additional 1% would be added to taxable purchases made in Ankeny.
For example:
A $10 taxable purchase would cost an additional 10 cents.
A $100 taxable purchase would cost an additional $1.
A $500 taxable purchase would cost an additional $5.
A $1,000 taxable purchase would cost an additional $10.
That could be particularly noticeable at some of Ankeny's larger retailers, where customers frequently make higher-dollar purchases.
However, many everyday necessities that are exempt from Iowa sales tax would not be affected.
What About Renters and Residents Who Don't Own Property?
One of the main considerations surrounding the proposal is that the costs and benefits aren't distributed equally.
Property owners could directly benefit from the portion of LOST revenue used to reduce the city's property tax rate.
Renters and other residents who don't own taxable property would still pay the additional sales tax on taxable purchases without receiving a direct property tax reduction.
Supporters of local option sales taxes often point to the ability to spread the cost of city services among residents and visitors, while critics note that sales taxes can have a greater proportional impact on lower-income households because those households may spend a larger percentage of their income on taxable purchases.
What Could This Mean for Ankeny's Continued Growth?
Ankeny's rapid growth has created demand for additional roads, infrastructure and city services.
The September vote ultimately asks residents to decide how the city should fund some of those needs going forward: continue relying more heavily on property taxes or shift a portion of the city's revenue toward sales taxes paid by both residents and visitors.
For homeowners, the proposal presents a tradeoff between paying an additional 1% on taxable purchases in Ankeny and potentially paying a lower city property tax rate.
For the city, it represents an opportunity to diversify revenue as Ankeny continues to grow as both a residential community and a regional shopping destination.
When Is the Ankeny LOST Election?
The special election will be held:
Tuesday, September 8, 2026
Polls open from 7:00 AM to 8:00 PM
The measure requires more than 50% voter approval to pass.
Whether you're an Ankeny homeowner, renter, business owner, or someone thinking about moving to Ankeny, the outcome could affect both the cost of shopping in the city and how Ankeny funds property tax relief and future infrastructure projects.
As Ankeny continues to grow, decisions like this will help shape how the community pays for that growth in the years ahead.