Thursday, May 14, 2009

After official count, tax vote stands | GazetteOnline.com - Cedar Rapids, Iowa City

Coralville and Iowa City are sandwiched together. Iowa City is the largest city, 70,000 vs. 20,000. It's hard to say how a 1% difference in sales tax will affect their respective economies. I wouldn't think masses of people will start shopping in Coralville instead of Iowa City, especially since Iowa City is a University town and a party town. But, I think the affect will be greater than 1%. After 4 years, I suspect Coralville will take around 2-5% of sales from Iowa City, more than enough to make up from the loss of tax revenue sharing from the hike. This is a great opportunity to prove how Conservatism pays off over Liberalism. After official count, tax vote stands | GazetteOnline.com - Cedar Rapids, Iowa City: "The four-year, 1 percent local-option sales tax was approved by seven votes in Iowa City, 3,641 to 3,634. The tax was rejected in Coralville by eight votes, 964 to 956."

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