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Cities and counties with local sales taxes stand to rake in extra dough under Dayton plan

A host of Minnesota counties and cities that levy their own local sales tax would benefit greatly from Gov. Mark Dayton's plan that would expand the state sales tax to some clothing and business services while lowering the overall rate by 20 percent.

That's because the local sales tax rates would not be lowered but would be collected on more things with the expansion.

An Associated Press story said state estimates show that, if implemented, the change would give the sales-tax-collecting counties $79 million more in 2014 while the affected cities would gain a combined $60 million.

Many of the local sales taxes are temporary and designed to pay for specific projects, while others last longer and can pay for a variety of things.

The two-dozen local sales taxes include 1 percent in Duluth; 0.15 percent in Hennepin County for the Twins stadium. St. Paul has a half-cent tax. New local sales taxes kicked in last year in Fergus Falls, Hutchinson and Lanesboro.

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Comments (2)

It never ends

The fleecing will continue.

It's interesting that Kimball

It's interesting that Kimball would omit from this piece the half-a-percent Minneapolis sales tax, just renewed for 30 years to pay for the MN Vikings football stadium. I wonder, how much extra money would Minneapolis's tax generate, under the suggested new sales tax rules? Who would get it--the Vikings, Target Center, or Minneapolis?