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REQUEST FOR COUNCIL ACTION Date: 2/24/2025 Item No.: 7.g. Department Approval City Manager Approval Item Description: Discuss Implementing the Roseville Local Sales Tax 1 2 Background 3 On November 5, 2024, two referendum questions were on the general election ballot 4 asking Roseville voters to approve a local sales tax to fund two City projects. One question 5 asked to create a 0.5% local sales tax to fund the construction of a Maintenance 6 Operations Center (MOC). The second question asked to create a 0.5% local sales tax to 7 fund the construction of a new License and Passport Center (LPC). While separate 8 questions, the approval of either one or both questions would create a 0.5% local sales tax 9 in Roseville. 10 11 The results from the election were as follows: 12 City Question 1 -Maintenance Operations Center 0.5% Sales Tax 13 Yes 11,263 14 No 9,171 15 16 City Question 2 - License and Passport Center 0.5% Sales Tax 17 Yes 9,465 18 No 10,831 19 20 Based on the results, the City can implement a 0.5% local sales tax to fund the construction 21 of the MOC up to an amount of $64 million. 22 23 Staff is bringing forward a discussion with the City Council to determine when to begin the 24 process to implement the local sales tax. As a reminder, below is what the City needs to 25 do to implement the sales tax. 26 27 Implementation of Local Sales Tax for the Maintenance Operations Center 28 The Minnesota Department of Revenue requires local governments to notify them in writing 29 at least 90 days before the anticipated begin date of the collection of the local sales tax. 30 The notice must include: 31 Authorizing session law or Minnesota Statute 32 Date the City plans to begin the tax (must begin on the first day of a calendar 33 quarter) 34 Approved tax rate 35 Formal request for the Minnesota Department of Revenue to administer the new tax Page 1 of 3 Qbhf!2:7!pg!354