By Mayor Tim Busse
As a city that was built out in the 1950s and 1960s, Bloomington has many facilities that need to be renewed, upgraded or replaced. The City Council has asked the state legislature to approve a proposal to renew and invest in Bloomington’s recreational, sports and health facilities that residents could vote on in November 2023. Three projects have been identified that could be funded this way: Nine Mile Creek Corridor renewal; Bloomington Ice Garden renovation; and a new community health and wellness center.
If approved by the legislature, the sales tax proposal would be put before Bloomington voters for final approval
Sales tax versus property tax
Cities have two primary ways to pay for community improvements—sales taxes and property taxes. Here’s how the cost could break down for each funding option:
- If the projects were funded by sales tax, it would require $70 – 105 in additional sales tax for each of Bloomington’s 42,000 households per year. With this option, the majority of the necessary funding would be paid by nonresidents.
- If the projects were funded through property taxes, the property tax bill for a median-value home would increase by $230 per year.
Let’s take a look at the steps in the process of starting a local sales tax. We are currently on step three.
For updates about the proposed sales tax, visit blm.mn/bst.