Four agencies that help residents in Newton and Jasper County will benefit from the City of Newton’s Local Option Sales and Service Taxes in Fiscal Year 2025-2026. The Newton City Council passed a resolution Monday night spelling out how that tax revenue is to be used from July 1st of this year through June 30th 2026. Approximately $2,250,000 is expected to be generated in the fiscal year by the one-cent tax that was approved by Newton voters in 2006. The language on the ballot required that at least 35% of the tax collections be utilized for property tax relief. The remainder of the taxes could be used for any other governmental purpose. 

The City of Newton has budgeted in the upcoming fiscal year to satisfy that property tax relief requirement by transferring 35% of the sales tax revenues, or $787,500, directly to the City’s Employee Benefits fund. Newton City Administrator Matt Muckler says this “buys down” the City’s tax levy by over $1.43 per $1,000 of taxable valuation. In addition to property tax relief, voters passed the Local Option Sales and Service Tax to assist local community organizations. The Newton City Council received requests from several community agencies for funding, and approved $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 Retired Senior Volunteer Program. The rest of the Local Option Sales and Services Tax revenues in 2025-2026 will go to the city’s general fund, to evenly cover the salaries for the Police, Fire, and Parks departments.