Next Steps for Approved Local Sales Tax Projects

The projects had been authorized by the Minnesota Legislature prior to the local sales tax moratorium going into effect.

During the Nov. 5 election, 19 Minnesota cities had 31 ballot questions for local sales taxes to fund capital projects of regional significance. Of the 31 ballot questions, 18 were approved by voters. Local sales tax proposals were voted down in Cottage Grove, Brooklyn Center, and Fairmont.

Next steps for approved projects

Cities with approved referendums must next pass an ordinance to impose the tax and notify the Minnesota Department of Revenue. If not already completed, the city must also adopt a resolution accepting the special authorization for a local sales tax and file it, along with a local approval certificate, with the Secretary of State before the next legislative session.

Learn more about the process to obtain local sales tax authority.

Voters approved these projects

The following cities and their projects received legislative authorization in the 2023 omnibus tax bill. While the Legislature placed a moratorium on local sales taxes in that bill, it provided an exception for these projects that were brought forward earlier in the legislative session.

Avon (Modify existing 0.5% local sales tax)

Capital and administrative costs of local street improvement projects (an additional $6.635 million) was approved with 83.2% support.

Excelsior (Modify existing 0.5% local sales tax)

Preserve the Excelsior Commons park as outlined in the Commons Master Plan (an additional $23 million) was approved with 74.4% support.

Oakdale (Modify existing 0.5% local sales tax)

• Expand and remodel the police facility (additional $3 million and five years) was approved with 68.2% support.
• Construct a new public works facility (additional $6 million and five years) was approved with 71.3% support.

Blackduck (Impose new 0.5% local sales tax)

• Rehabilitation of the Blackduck Community Library ($100,000 or 20 years, whichever is first) was approved with 53.7% support.
• Four other projects in Blackwood were not approved, including campground improvements, walking trails, a city wayside rest park, and a golf course irrigation project.

Chanhassen (Impose new 0.5% local sales tax)

Construction of a new Chanhassen Recreation Center ($40 million or 20 years, whichever is first) was approved with 55.3% support.

Detroit Lakes (Impose new 0.5% local sales tax)

Construction of a new pavilion and park improvements ($17.3 million or 12 years, whichever is first) was approved with 56.2% support.

Dilworth (Impose new 0.5% local sales tax)

Build a new community and recreational center ($5.4 million or 25 years, whichever is first) was approved with 72.1% support.

East Grand Forks (Impose new 1% local sales tax)

• Reconstruction and remodeling of the Civic Center sports complex ($6.745 million or 20 years, whichever is first) was approved with 59% support.
• Reconstruction and remodeling of the VFW Memorial Arena ($8 million or 20 years, whichever is first) was approved with 58.6% support.

Henderson (Impose new 0.5% local sales tax)

Improve Allanson’s Park campground and trails ($250,000 or 15 years, whichever is first) was approved with 63.9% support.

Hibbing (Impose new 0.5% local sales tax)

Construct a new regional public safety center ($19.6 million or 20 years, whichever is first) was approved with 55.5% support.

Monticello (Impose new 0.5% local sales tax)

• Construction and rehabilitation of the Bertram Chain of Lakes Regional Athletic Park ($15 million or 20 years, whichever is first) was approved with 50.5% support.
• Another proposed project by Monticello for a recreation area was not approved.

Proctor (Increase existing local sales tax by 0.5%)

Design and construction of a new regional and statewide trail spur ($6.9 million or 20 years, whichever is first) was approved with 55% support.

Richfield (Impose new 0.5% local sales tax)

• Construction of a new city community center ($45 million or 20 years, whichever is first) was approved with 62.6% support.
• Enhance and restore facilities at Veterans Park ($9 million or 20 years, whichever is first) was approved with 69.7% support.
• Build a new Wood Lake Nature Center building ($11 million or 20 years, whichever is first) was approved with 67.3% support.

Roseville (Impose new 0.5% local sales tax)

• Construction of a public works and parks operations facility ($64.2 million or 20 years, whichever is first) was approved with 55.1% support.
• Another proposed project by Roseville for a license and passport center was not approved.

Stillwater (Impose new 0.5% local sales tax)

Construction and renovation to the St. Croix Riverfront Improvement Project ($6.2 million or 10 years, whichever is first) was approved with 63.1% support.

Woodbury (Impose new 0.5% local sales tax)

• Construction of a new public safety campus ($50 million or 20 years, whichever is first) was approved with 54.4% support.

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