St. Paul Mayor Melvin Carter seeks 1% sales tax increase: "It's time for us to reconstruct our streets"
ST. PAUL, Minn. -- St. Paul Mayor Melvin Carter on Wednesday unveiled a new proposal to raise the city's sales tax by 1% for what he called "generational investment" for streets and parks.
"As a St. Paulite, I feel like it's my birthright to complain about streets," Carter said. "It's time for us to reconstruct our streets. It's time for us to ensure that our children can count on first-rate public infrastructure, and it's time for us to have the conversation over whether those goals are worth a penny. I think they are."
If approved by the city council, the resolution to raise the sales tax would move to the State Legislature, which would then have to approve the proposal's eligibility to appear on the ballot in a general election. The council could vote as early as its next meeting on Jan. 4. The mayor said he hopes lawmakers will take up the proposal in their next legislative session.
"Our need is enormous and for our streets and parks – we are going to fix them up," he said. "Our goal is to not kick the can down the road. Our goal is to have an uncomfortable conversation with our taxpayers, with our residents."
Sales tax in Minnesota is generally a combined rate between the statewide levy - 6.875% - and additional taxes imposed by local and county governments. In Minneapolis, for instance, the sales tax of 8.025% is a combined rate of the statewide tax, Hennepin County (0.15%), Hennepin County Transit (0.5%) and the City of Minneapolis (0.5%).
Residents and visitors in St. Paul currently pay a rate of 7.875%, which includes a half-percentage point imposed by the City of St. Paul and another half-percentage point from Ramsey County. If approved by voters, a 1% increase would raise St. Paul's combined sales tax to 8.875% - matching the rate of Duluth, the highest in Minnesota, as well as that of New York City.
The highest combined tax rate in a major American city is 10.25%, a feat owned by Chicago, Ill., and Long Beach, CA.