Twin Cities suburbs look to enact local sales tax

February 6, 2022 GMT

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.

The Star Tribune reported Saturday that 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.