Iowa – City of Des Moines Projects $18 Million Loss Because of COVID-19

The city of Des Moines estimates an $18 million loss of revenue for the next 60 days, and it’s all attributed to COVID-19. With the city at a stand still, it’s projected that there will be little revenue from sales tax, permits, and licenses. 

“Nothing like this has ever happened. This is a very unique situation,” said City Manager Scott Sanders. 

At $5.8 million, the most significant loss for the city is associated with the Local Option Sales and Service Tax Fund, a sales tax that was just approved in March 2019. The tax fund is used for infrastructure projects and public safety enhancements. 

Other significant losses include a $3.6 million loss to the Road Use Tax Fund and a $2.1 million loss in hotel tax revenue.

For the full story: WHOtv

by melody mercado
April 12, 2020