CCP 01082024 - Laserfiche WebLink

Home

41 After meeting with both firms and reviewing their proposals, staff recommends the hiring of Rapp 42 Strategies based on their scope of work, depth of experience with local referendums and specifically 43 with local sales tax referendums, and their overall costs. 44 45 Policy Objectives 46 On October 10, 2022, the Roseville City Council approved the Civic Campus Pre-Design Study 47 demonstrating the need for a new Maintenance Facility and a new License Center facility. On January 48 9, 2023, the City Council adopted a legislative priority requesting the Minnesota Legislature grant 49 permission for the City of Roseville to hold a referendum to impose a local sales and use tax to fund the 50 construction of the new facilities. Entering into a professional services agreement with a public affairs 51 firm to assist the city in raising awareness and informing voters of the upcoming referendum furthers the 52 priority of constructing the long-identified need for a new Maintenance Facility and License Center. 53 54 Racial Equity Impact Summary 55 A sales tax is generally considered one of the most regressive taxes, meaning people with lower income 56 pay a larger percentage of their income for sales taxes. The Institute on Taxation and Economic Policy’s 57 report “Taxes and Racial Equity – An Overview of State and Local Policy Impacts” states the following 58 regarding the impact of sales taxes: 59 60 Consumption taxes, most notably general sales taxes, are the most regressive type of taxes relied on by 61 state and local governments and the most significant drivers of racial inequity in state and local tax 62 codes. Low- and middle-income families pay a larger share of their incomes in consumption taxes than 63 the rich. While most low-income taxpayers are white because they remain a majority of the U.S. 64 population, a disproportionate share of Black, Hispanic, Indigenous and other households of color are in 65 lower-income groups due to the legacy of racist public policies and ongoing discrimination. So, policies 66 that disadvantage low-income individuals and families — like heavy reliance on sales and excise taxes 67 — have a disproportionately negative effect on people of color. 68 69 While still acknowledging that sales tax disproportionally impacts lower income groups and people of 70 color, it should be noted that Minnesota does not apply sales tax to food bought in grocery stores and 71 clothing. This is an important distinction since the exemption helps individuals meet their basic needs 72 regarding food and clothing without paying an additional tax. However, it is clear that sales taxes, along 73 with property taxes, and income taxes continue to disproportionally affect lower income groups and 74 persons of color. Changes at the state and federal level regarding tax policies will be needed to fully 75 address these inequities. 76 77 For reference purposes, listed below is data specific to the City of Roseville. 78 Median Income by Race/Ethnicity (Household) - Roseville, Minnesota American Indian and Alaska Native Null Asian $79,145 Hispanic or Latino $64,400 Native Hawaiian and Other Pacific Islander Null White $85,514 Black or African American $49,946 Other Race $44,410 79 80*US Census Bureau ACS 5-year data (2017-2021) 81 82 83 84 Page 2 of 3 Qbhf!57!pg!413