Voters in several Twin Cities suburbs will be asked in this year’s election whether they want to raise or extend their local sales tax to pay for municipal projects ranging from community centers to park improvements, a licensing center and more.
Unlike raising property taxes, a cost shouldered by city residents and business owners, cities pitch sales taxes as a way to share the burden of raising revenue with visitors who buy stuff in the community. City sales taxes are tacked on to the 6.875% Minnesota sales tax and any other local sales taxes. At the ballot box, the taxes need a majority of votes to prevail.
Cities need approval from the Legislature to ask voters to raise their sales tax, and this will be the last batch to go before voters for a while.
In 2023, the Legislature’s House and Senate tax committees were divided over giving local communities the OK they needed to put local sales tax increases before voters. As a compromise, the final tax bill included more than two dozen requests, and lawmakers agreed to a moratorium on new requests until June 2025.
Lawmakers also created the Local Taxes Advisory Task Force and asked for a report on how communities use local sales taxes. The report noted that sales taxes are regressive, meaning they eat up a disproportionate amount of low-income households’ budgets. It also recommended that local sales taxes be used for regional projects or to provide economic development opportunities, like regional community or convention centers.
Here’s a look at which cities have sales tax ballot questions and what they’d pay for.
Election Day is Nov. 5, but in-person early voting begins Friday, Sept. 20.
Brooklyn Center
Brooklyn Center voters will see a ballot question asking whether they’d like to approve a 0.5% sales tax to renovate and expand the city’s community center, including new courts, an indoor track and playground, teen areas, updated bathrooms and locker rooms and more. The city would raise up to $44 million from the sales tax that would go toward the community center. That would supplement $5.1 million in state bonds for the project. More information can be found at ourcenterourfuture.org.