Mayor Melvin Carter pitches 1% sales tax for St. Paul parks, streets

St. Paul Mayor Melvin Carter is proposing an idea to help repair and replace the city's notoriously bad roads and aging park facilities — a new 1 % sales tax.

The sales tax increase would pay for "necessary, long-overdue improvements to Saint Paul streets and aging parks facilities," Carter said in a statement Tuesday. "A one-cent sales tax would provide a billion dollars to revitalize our city's streets and parks, while sharing the cost among the many residents, businesses, commuters, and visitors who benefit from them every day."

St. Paul City Council President Amy Brendmoen called a sales tax increase "one important part of a full funding package that the Legislature can support to make our Capital City truly shine."

City officials said the tax would raise an estimated $984 million over 20 years. First the City Council, then the Legislature, would have to approve the increase. Cities must then advance a detailed question on a general election ballot for local voter approval.

City Council members expressed support for the idea Tuesday.

"It's time we take bold action to ensure the safety and longevity of our Minnesota roads," said Council Member Russel Balenger.

Council Member Rebecca Noecker, who represents downtown, said in a statement: "We're proud to host numerous civic, entertainment, athletic, cultural, and historical attractions that draw people in from the entire region. A sales tax will allow all those who enjoy our streets and parks to help us maintain them."

Council Member Chris Tolbert said, "This investment infrastructure is critical to ensuring that we can commute to work, connect to nature, and ready ourselves for our future."

And Council Member Mitra Jalali said, "This increase of pennies in the sales tax stands to bring forth millions in needed annual revenue for our city — funds that are necessary to help correct a chronic historic underfunding of basic infrastructure."

The City Council is expected to review the proposal at its Jan. 4 meeting.

Carter's sales tax plan comes less than a month after the St. Paul City Council approved an $805 million 2023 budget that includes a nearly 15% increase in property tax collections — about half of which will be offset by a decrease in residents' street maintenance bills, after a May court ruling said routine services must be funded by taxes instead of fees.

People buying goods and services in St. Paul already pay an additional 1% over the base state sales tax, with St. Paul and Ramsey County each collecting half a cent. On Jan. 1, 2000, St. Paul's half-cent tax was approved for the Sales Tax Revitalization (STAR) program. It funded the expansion and remodeling of RiverCentre as well as capital projects to further residential, cultural, commercial and economic development in downtown and the neighborhoods of St. Paul.

With the added money, St. Paul officials said they would pursue the following projects:

The sales tax increase would also help fund a new multi-purpose East Side community center; a mixed-use, river-focused space and National Park Service headquarters at Crosby Farm Regional Park and a 1.5-mile River Balcony promenade along the downtown bluff.

Carter has lined up support for the proposal from labor and political leaders.

Rena Moran, a former legislator and newly elected Ramsey County commissioner, called the plan "a fair and necessary way to fund these important projects."

Don Mullin of St. Paul Building Trades said the poor condition of many streets "negatively impacts the mobility, safety, and access to the businesses that do so much to grow our community."

And Dean Gale, business manager of St. Paul Plumbers and Gasfitters Local 34, said: "An investment like this — directly funding street and park improvements — is a smart and necessary step towards maintaining and improving the systems that we rely on every day."

Barry Davies, business manager for Ironworkers Local 512, called the tax increase "a small price to pay for the long-term benefits it will bring to our community."