"Our residents, anywhere they go essentially in Iowa and they spend a dollar, they are paying that sales tax and it's helping those other communities fund their priorities." Ankeny City Manager Mike Schrock said that to WHO 13 in August 2026, about a month before the vote.
On Sept. 8, 2026, Ankeny voters approved a 1% Local Option Sales Tax with 64% of the vote, according to unofficial results the city reported. Starting Jan. 1, 2027, the citywide sales tax goes from 6% to 7%. Most coverage treated that as a small price increase at the register. For anyone comparing Ankeny with other Des Moines suburbs, the vote did something else. It changed which tax sets Ankeny apart, and a big share of the new money will come from people who don't live here.
Ankeny was the outlier, and its residents were already paying
Before the vote, Ankeny was the only city in Polk County without a local option sales tax. It was also one of just five cities in Iowa without one, according to the city's pre-election release.
So the 6% rate never meant Ankeny households skipped the local tax. It meant they paid it somewhere else. The city's own fact sheet spelled out what would happen if the measure failed: "Ankeny residents will continue paying local option sales tax when shopping in other communities." Each taxable purchase in a neighboring city helped pay for that city's property tax relief and projects.
Mayor Bobbi Bentz made the same point to Axios Des Moines. Visitors could help pay into Ankeny's infrastructure through the 1%, she said, which is what Ankeny residents already do when they shop outside the city.
The money had been flowing out of Ankeny. The vote lets some of it flow in.
The Costco math
Ankeny is a retail destination for much of the metro, and that drives the whole argument. The city estimated that about half of the sales tax collected in Ankeny comes from nonresident shoppers. Its fact sheet credits that estimate to Placer.ai, a foot-traffic data firm.
Axios gave the clearest single example. Ankeny's Costco, which Axios described as the largest in the Midwest, gets 70% of its sales tax revenue from shoppers who live outside the city, as reported in August 2026. In Bentz's words, those visitors were using the city's amenities without paying in.
Put those together. The city expects the tax to bring in more than $12 million a year. If the nonresident estimate holds, about $6 million of that comes from people driving in from other zip codes to fill a cart. Schrock described it the same way, telling WHO 13 that nonresidents would supply about half of the expected revenue.
Where the money is required to go
Iowa law decides how the money is split. As the city's fact sheet puts it, 50% of LOST revenue is required by state law to go to property tax relief. Ankeny's ballot language divided the revenue this way:
- 50% for property tax relief
- 50% for capital projects, including street improvements, park and trail improvements, recreational facilities, public infrastructure, public safety equipment, public facilities or debt retirement
Some things stay untaxed. The fact sheet lists groceries, rent, mortgage payments, gas, prescription medications and vehicles. A household's biggest recurring costs fall outside the new tax. Most of what it hits is discretionary retail, the same shopping that draws people in from across the metro.
What the property tax side is projected to do
Before the vote, the city presented two forecasts for the city portion of the property tax rate. Here they are side by side, as published in August 2026:
| Scenario | City property tax rate forecast | Source |
|---|---|---|
| LOST approved | Decrease of about 6%, then steady through FY 2032 | City of Ankeny |
| LOST rejected | Increase of about 5% over the next eight years | City of Ankeny |
| LOST approved, in dollars | From $9.90 to $9.30 per $1,000 of valuation by FY 2028 | Axios, citing city projections |
| Example household | About $80 a year in savings on a $300,000 home | Axios, citing the city's property tax calculator |
Eighty dollars a year doesn't sound like much. The more useful number is the gap between the two scenarios. Without the vote, the city expected its rate to rise. Schrock told WHO 13 that it would have been the first city property tax increase since FY 2013, and he said the new state property tax law strengthened the case for another revenue source. Bentz told Axios that the Legislature's recent cap on property tax revenue helped settle the decision to hold the election.
Axios described Ankeny as already having the lowest property tax rate in the Des Moines metro. What the voters approved was a way to keep that rate low as state limits tightened, with a large share of the cost landing on shoppers from other towns.
If you want to run your own numbers, the city has a property tax calculator. That's the tool behind the $80 example.
What the projection doesn't cover
There are three limits to keep in mind when comparing Ankeny with other suburbs.
It's only the city's share of the bill. The fact sheet says plainly that the forecast "reflects the City property tax rate only and does not include other taxing entities." A property tax bill also includes other levies, such as the school district and the county. The sources we reviewed don't show how those portions will change.
The real numbers come later. The city's post-election release says the new revenue will be built into the FY 2028 budget process and long-term financial planning. The $9.30 figure is a pre-election projection, not an adopted rate. The city hasn't said which tax bill will first show the relief.
The benefit goes to property owners. Axios noted that renters don't get the property tax relief, and that sales taxes are considered regressive because lower-income households tend to spend a larger share of their income on taxable goods. For a buyer, that means the relief is tied to owning.
The city has also said it will show how the money is spent through a dedicated webpage, an annual report and signs on projects funded by the tax. Watch for the first round of those reports and signs if you're tracking whether the capital half reaches streets and trails near a home you're considering.
How this changes a suburb comparison
Until Jan. 1, 2027, Ankeny differs from every other Polk County city on two taxes: a lower sales tax and, according to Axios, the metro's lowest property tax rate. After that date, the sales tax difference within Polk County is gone. What's left is the property tax difference, and the vote was designed to keep it in place through FY 2032 according to the city's forecast.
For a household comparing an Ankeny home with one in a neighboring suburb, that makes the comparison simpler. Within Polk County, the sales tax on discretionary shopping no longer depends on which city you live in. The city portion of the property tax bill does, and Ankeny's is projected to go down and then hold steady. Based on the city's pre-election estimate, about half of the sales tax paying for that relief comes from people who live somewhere else.
A short FAQ
When does the new rate start? Jan. 1, 2027. The sales tax in Ankeny goes from 6% to 7% on taxable purchases.
Does it apply to groceries or gas? No. Groceries, rent, mortgage payments, gas, prescription medications and vehicles are among the exempt purchases listed in the city's fact sheet.
How much will my property tax bill drop? The city's August 2026 projection showed the city rate moving from $9.90 to $9.30 per $1,000 of valuation by FY 2028, or about $80 a year on a $300,000 home. That covers only the city's portion. The final figures depend on the FY 2028 budget.
How much is the tax expected to raise? More than $12 million a year, according to the city, split evenly between property tax relief and capital projects.
When you compare Ankeny with other suburbs, the city portion of the tax bill now belongs on the list next to lot size and commute time. We're happy to go through the numbers on a specific home with you before you write an offer. Jill Budden and our team follow these local changes so your decision rests on current facts. Live somewhere you love. Let's get started.
This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.
