The Free Press, Mankato, MN

Local News

May 17, 2008

Area sales tax part of Legislative negotiation

By Mark Fischenich

As the state’s top leaders attempted to work out the final details on major issues such as property tax relief, school funding and budget cuts, area lawmakers were attempting to keep alive items that will have a more regional impact.

Sales tax authority being sought for Mankato and North Mankato still had a chance of being included in the final legislation being negotiated by Gov. Tim Pawlenty and legislative leaders, according to Reps. Terry Morrow and Kathy Brynaert and Sen. Kathy Sheran.

“I know that’s still part of the negotiation,” said Morrow, DFL-St. Peter, referring to a half-percent sales tax for North Mankato, an extension of Mankato’s half-percent tax, and a new 1 percent food and entertainment tax for Mankato. “But the last thing we heard, they are (in the final deal).”

The North Mankato tax would be used to repay $6 million in bonds that would be issued for park improvements, a library expansion, downtown revitalization and a Highway 14 interchange. The tax was approved by a better than 2-to-1 margin by local voters in a referendum.

The Mankato tax on meals, drinks and entertainment tickets would generate up to $500,000 for operations and maintenance of the Alltel Center, freeing up revenue from the city’s existing half-percent sales tax for improvements to — and possible expansion of — the civic center. The life of the existing tax would also be extended to the year 2022.

Pawlenty has resisted those taxes and other local option sales taxes still being sought by other communities.



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