Twin Cities suburbs look to enact local sales tax
February 7, 2022
MINNEAPOLIS (AP) — A host of Twin Cities suburbs are looking to enact local sales taxes to help maintain and upgrade aging public amenities like community centers, ice rinks and city buildings.
About a dozen cities, including Edina, Bloomington, Golden Valley, Roseville and Brooklyn Center, are looking to enact a new sales tax on top of the 6.9% sales tax the state already collects to pay for capital projects.
City officials say the tax is a way to collect money from out-of-town visitors who use their facilities, reducing the burden on residents.
Local sales taxes can vary but they typically amount to half a cent. The suburbs would need to get approval from the Legislature and voters would have to approve the tax for a specific project.
According to the League of Minnesota Cities, more than 40 cities across the state have received legislative permission to enact a sales tax. Oakdale plans to ask voters this fall to approve a tax to build a new police station.