In Fiscal Year 2025-2026, the City of Newton will use its Local Option Sales and Service Taxes to support four organizations that assist citizens of Newton and Jasper County. On Monday evening, the Newton City Council passed a resolution outlining the use of the tax money from July 1st of this year through June 30th, 2026. The one-cent tax authorized by Newton voters in 2006 is estimated to raise around $2,250,000 in the fiscal year. The ballot’s wording mandated that property tax relief get at least 35% of tax revenues. Any other government purpose might be funded with the remaining tax revenue.
In order to meet that property tax relief requirement, the City of Newton has allocated $787,500, or 35% of sales tax proceeds, to the City’s Employee Benefits fund in the next fiscal year. This reduces the city’s tax levy by more than $1.43 for every $1,000 of taxable property, according to Newton City Administrator Matt Muckler. Voters approved the Local Option Sales and Service Tax to support neighborhood organizations in addition to providing relief from property taxes. After receiving financial requests from a number of community organizations, the Newton City Council authorized $35,251 for the Heart of Iowa Regional Transit Agency, $18,000 for the Newton YMCA, $15,000 for the United Way of Jasper County, and $5,000 for the RSP. The city’s general budget will receive the remaining funds from the Local Option Sales and Services Tax in 2025–2026, which will be used to equally support the wages of the parks, fire, and police departments.
