Sales tax plan would be boon to some Minn. cities

Published On: Jan 28 2013 03:23:16 PM CST
ST. PAUL, Minn. (AP) -

About two dozen Minnesota cities and counties would see a gusher of unexpected money if Gov. Mark Dayton's proposed sales tax expansion to more items and services prevails.

That's because the local governments piggyback on the state's sales tax with levies of their own.

Most of the local add-on taxes are dedicated to specific purposes, which could mean quicker repayment of public debt on building projects. For those cities, it means their local sales taxes would blink off sooner.

Other cities have more flexibility in spending dollars from local taxes that either never expire or won't for decades.

Early estimates by the Minnesota Department of Revenue show that cities and counties with their own sales tax could expect to see 60 percent more than they take in now.