IOWA CITY – A 1% Local Option Sales Tax will begin July 1, 2026, in Iowa City, Coralville and North Liberty after voters approved the tax in November 2025, according to the City of Iowa City.
The City of Iowa City said it has prepared a guide for local businesses explaining what the tax is, which businesses must collect it and how collection works. The city said the full guide is available at www.icgov.org/LOST.
Officials said the Local Option Sales Tax, also known as LOST, is a 1% local sales tax collected at the point of sale on taxable goods and services. The tax is remitted to the Iowa Department of Revenue…