Minnesota lawmakers seek to limit cities' growing use of sales taxes

Jan 27, 20200

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St. Paul city officials say they'd like to add a 1% sales tax to spend on prekindergarten services, housing and roads. Here, street service worker Bradley Therres smooths asphalt over a pothole on Shepard Road.

More Minnesota cities are imposing local sales taxes than at any time in state history, and some state legislators are worried a proliferation of the new taxes could create unfair advantages for communities with more retailers.

Legislators allowed 18 cities, from Willmar to West St. Paul, to add or extend a sales tax in 2019, and 14 others got the go-ahead in 2017. That's a dramatic jump from decades past, when the state signed off on fewer than two local sales taxes per year on average. Cities' leaders are increasingly relying on these local sales taxes to pay for millions of dollars in new projects and expenses without raising property taxes.

http://www.startribune.com/minnesota-lawmakers-seek-to-limit-cities-growing-use-of-sales-taxes/567298232/