Voters this fall in two Minnesota locales will decide whether to approve tax increases to benefit roads.
City of Rochester
The state’s third-largest city will include a question on the Nov. 7 ballot to extend the local option sales tax.
In place since 1983, and extended in 2012, the half-cent tax covers multiple funding needs in the city of Rochester.
Without an extension, the tax is scheduled to sunset in 2024. At that time, the tax will have raised the $139.5 million goal set in 2012.
Extension of the tax is estimated to raise $205 million for projects that include road reconstruction over the next 16 years.
Advocates say without the extension the city would need to increase property taxes to cover funding needs for flood control, housing, road reconstruction and the construction of a new sports complex.
Road reconstruction is slotted to receive $50 million.
City of St. Paul
Voters in the state’s second-largest city will decide this fall whether to impose a 1% local sales tax.
The penny tax is estimated to raise nearly $1 billion over the next two decades for improvements to roads and parks.
An estimated $738 million will be allotted to repair and improve streets and bridges. Another $246 million is slotted for parks and recreation facilities.
Supporters say a sales tax increase would allow the city to collect additional revenue from visitors.
“We have a unique opportunity to make an exceptional investment in our city’s roads and parks, providing future generations with sound infrastructure,” St. Paul Mayor Melvin Carter said in prepared remarks.
Opponents say the city’s 8.875% general sales tax is tied with the city of Duluth as the highest in the state. They warn that an increase in St. Paul will result in people traveling to other cities to shop. LL
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