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Appendix D Selected Historical Summaries for Local General Sales Taxes City Rate Background Duluth 1.0% The tax has no expiration date. Used for the city general fund- city municipal operations, maintenance, and capital improve- ments. Duluth has been specifically exempted from the statutory provision requiring tax collection/administration by the state and they currently administer their own tax, but it is set to transfer to the Department of Revenue on 1/1/06 (2001 Sp. Session, Ch. 5). Hermantown 0.5% Expires at the later of 10 years, or when sufficient funds have been met for the projects. Enacted for a sewer interceptor line, improvements to the municipal water system, and construction of a police/fire station. Mankato 0.5% Set to expire after $25 million for the Riverfront 2000 urban revitalization project (civic center, arena, park, & support facili- ties). Extended in 1996 to expire after an additional $4.5 million is raised for the airport. Minneapolis 0.5% The tax has no expiration date. Enacted in 1986 for convention center construction and maintenance. Augmented by 3% lodging tax, 3% downtown restaurant tax, and 3% downtown liquor tax. In 1992 the authorization was expanded to use proceeds for neighborhood early learning centers. Has not been implemented. New Ulm 0.5% The tax expires when sufficient funds to pay for up to $9 million in bonds for the civic and community center and recreational facility. Proctor 0.5% The tax expires when sufficient funds to pay for up to $3.6 million in bonds for the community center and street improve- ments. Rochester 0.5% This tax has been renewed three times (1989, 1992, and 1998). Initially enacted at 1% to raise $16 million for improvements to city park and recreation center and $16 for flood control improve- ments. Previously funded capital improvements to the fire hall, city hall, and public library facilities. The rate was lowered to 0.5% in 1992 (effective 1/1/93). The last extension in 1998 allows the city to raise another $76 million for several capital projects. St. Paul 0.5% The tax was originally set to expire when the civic center bonds were paid off. Funded renovation of Civic Center and neighbor- hood revitalization project. Amended to fund demolition of existing arena and construction of St. Paul RiverCentre Arena and expiration reset to 12/31/30. Two Harbors 0.5% Expires at the later of 10 years, or when sufficient funds have been met for the three projects. Enacted for sanitary sewer preparation, wastewater treatment, and harbor refuge develop- ment projects. County Cook 1.0% Enacted in 1993 and originally set to expire when $4 million was raised for the North Shore hospital. Extended in 1997 to allow an additional $2.2 million to be raised for the North Shore care center. Note: M.S. 297A.48 (1997 legislation) required all jurisdictions (except Duluth) to have a complementary use tax, effective 1/1/2000. 30