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REQUEST FOR COUNCIL ACTION Date: January 9, 2023 Item No.: Department Approval City Manager Approval Item Description: Consider Adopting a Resolution supporting the creation of a local sales tax in Roseville 1 B ACKGROUND 2 Last year, the City Council adopted a resolution supporting the creation of a 0.5% local option sales 3 tax in Roseville. Under state law, the Minnesota Legislature first has to approve the request and then 4 Roseville voters would need to approve the implementation of the local option sales tax. In the last 5 legislative session, Roseville’s local sales tax request was included in the House and Senate omnibus 6 tax bills, but the Legislature adjourned without taking action on the bills. 7 8 The City Council has expressed a desire to pursue approval of 0.5% local option sales for Roseville 9 in the 2023 Legislative Session. Below is the process the City must follow for the Minnesota 10 Legislature to consider approving a local option sales tax for Roseville: 11 12 1. City must pass a resolution that includes: 13 a. Proposed tax rate 14 b. Detailed description of up to five capital projects to be funded with the tax 15 c. Documentation of how each project will provide an economic benefit to residents, 16 businesses, and visitors from outside their jurisdiction 17 d. Amount of revenue to be raised for each project and the estimated time needed to 18 raise funds 19 e. Total amount of revenue to be raised for all projects 20 f. Estimated length of time the tax will be in effect if all proposed projects are approved 21 2. City must submit the approved resolution and supporting documentation to the senate and 22 house tax committee chairs by January 31 23 3. Once legislative approval is given, the City shall revise and reaffirm its resolution. The 24 resolution must be passed at least 90 days before a general election 25 4. The City shall hold a referendum vote at a general election within two years of legislative 26 approval. If there are multiple projects, each project must have a separate question for 27 approval 28 5. If sales tax referendum is approved, the City shall create and pass an ordinance imposing the 29 tax 30 6. Once ordinance is passed, file a certificate of approval and copy of the ordinance with the 31 Minnesota Secretary of State and inform the Minnesota Department of Revenue in writing of 32 the new local sales tax 33 34 Staff is proposing that two projects totaling $76,900,000 to be funded by a local sales tax: 35 36 1) City Maintenance Facility at a cost of $64,200,000 Page 1 of 3