Is your city asking you to vote on a sales tax hike this election? These Twin Cities suburbs are.

Cities pitch sales tax increases as a way to shift the burden of funding projects from residents and business owners who pay property taxes to anyone who makes a purchase that includes a sales tax.

September 17, 2024 at 12:00PM
Voters will consider local sales and use taxes in several Twin Cities metro communities this year. (Elizabeth Flores/The Minnesota Star Tribune)

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.

Chanhassen

City officials are asking voters to approve a 0.5% sales and use tax to help cover the cost of a new Chanhassen Bluffs Community Center. The new center, planned for the intersection of Highway 212 and Powers Boulevard, would include an indoor walking track, an ice arena that doubles as a venue space, field house, indoor playground and other amenities. The project would cost nearly $80 million and would be funded using the new tax, the property tax levy and money from a sale of the existing recreation center and other sources.

Cottage Grove

The city of Cottage Grove is asking taxpayers to approve a 0.5% sales and use tax to help pay for projects at three parks. Each project will be a separate question on the ballot, but whether one project passes or all three pass, taxpayers would see a 0.5% increase.

If approved, Hamlet Park would get up to $17 million for a new building, play equipment, skateboard park, athletic facilities, splash pad and other updates. The Mississippi Dunes Park would get $13 million for improvements including an interpretive center; habitat restoration; a kayak, canoe, and small boat launch; outdoor educational spaces; walking and hiking trails; and a nature-themed playground. The River Oaks Golf Course and Event Center would get $6 million for pickleball courts, indoor multisports simulators, a winter mountain biking course, upgrades to the building and patio, and a nine-hole putting green course.

Excelsior

City leaders are asking residents to continue a 0.5% local sales tax until $23 million has been collected. They hope to pay for improvements to Excelsior Commons Park, including walkways, beaches, picnic areas, tree preservation and erosion control efforts.

Oakdale

The city of Oakdale is asking taxpayers to support an extension of an existing 0.5% sales and use tax for five more years, from 2048 to 2053, to help pay for inflationary costs of constructing a new public works facility. The extension would last until an additional $6 million has been raised or for five years, whichever comes first.

Richfield

Voters will see three questions asking them to approve 0.5% sales and use taxes to fund up to $65 million in park and recreation projects. City leaders hope to bring in $45 million to build a new community center that includes gyms and sports courts, an indoor walking track, meetings rooms and other spaces. They’re seeking $9 million to help update Veterans Park, including replacing the pool liner and basin, upgrading the ice arena and resurfacing trails, among other projects. They also hope to build a new $26 million educational facility at Wood Lake Nature Center, a project that would also be covered with state and federal funds. More information can be found at ourlegacyourfuture.org.

Roseville

Roseville voters will be asked if they want to raise their local sales tax by 0.5% to pay for two projects. One would raise $64.2 million for a new city maintenance and operations center. The city says it has outgrown its current facility, which also doesn’t meet safety and security standards. The second project is a $12.7 million new license and passport center. Roseville’s high-demand facility, which also serves surrounding communities, has become more crowded as nearby centers have closed, according to Roseville. Whether one or both questions pass, the sales tax increase remains the same. More information can be found at investinroseville.org.

Stillwater

The city of Stillwater is asking voters to approve a 0.5% sales and use tax for up to 10 years to cover the $6.2 million cost for riverfront parks to the north and south of downtown Stillwater along the St. Croix River. The projects could include renovation of the Aiple House, increased parking and shoreline stabilization in the new Lumberjack Landing park north of downtown, and more public access, amenities, public gathering and open spaces in Bridgeview Park south of downtown.

Woodbury

The city of Woodbury is asking taxpayers to support a 0.5% sales tax for up to 20 years to raise $50 million for the construction of an expanded public safety campus for EMS, police and fire services. The campus expansion has already been approved, so a “no” vote would mean Woodbury would have to fund the renovations from other tax sources.

Use our election lookup tool to see what else is on the ballot. Find out how to register and vote here.

about the writers

about the writers

Greta Kaul

Reporter

Greta Kaul is the Star Tribune’s built environment reporter.

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Christopher Magan

Reporter

Christopher Magan covers Hennepin County.

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Matt McKinney

Reporter

Matt McKinney writes about his hometown of Stillwater and the rest of Washington County for the Star Tribune's suburbs team. 

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Liz Navratil

Reporter

Liz Navratil covers communities in the western Twin Cities metro area. She previously covered Minneapolis City Hall as leaders responded to the coronavirus pandemic and George Floyd’s murder.

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