The City Council chose a local sales tax because it would spread the cost of the projects among residents and nonresidents who make purchases in the city and often benefit from city services. If approved by voters, 64% of the sales tax would be paid by nonresidents, according to an independent analysis by the University of Minnesota Extension Center.

If both projects are approved by voters this November:

• Nonresidents would contribute approximately $49 million of the $76.9 million cost.

• Residents would contribute approximately $28 million of the $76.9 million cost.

For each Roseville resident, the cost of the 0.5% sales tax is estimated to be $4.62 per month, or $55.48 a year, according to the University of Minnesota research. If the projects were funded through a property tax, a median-value home would increase by approximately $30 per month, or $360 per year.

For additional details, visit our Cost page.

If approved by voters this November, the 0.5% sales tax will generate one cent for every $2 spent, or five cents for every $10 purchase. For each Roseville resident, the cost of the 0.5% sales tax is estimated to be $4.62 per month, or $55.48 a year.

For more information visit our Cost page.

The University of Minnesota analyzed the economic effects of a local sales tax in several cities and found little evidence that overall sales growth for businesses was affected.

For more information visit our Cost page.

If approved by voters, the sales tax would be implemented in the spring of 2025 and continue for 20 years, or until the approved projects, plus interest and bond issuance costs, are paid —or whichever happens first.

Much like a family that uses a mortgage to purchase a house, the city will use bonds to pay for the construction and pay both principal and interest.

If the city waited to finance construction until all the necessary funding was collected from the sales tax, the project would cost several times more than the current projection and take much longer to complete.

More importantly, city residents will start to benefit from the investment in the next 3-5 years, instead of many years down the road.

Yes. Local sales taxes are applied the same way as state sales taxes. Essential goods, including groceries, clothing, prescription and over-the-counter drugs, feminine hygiene products, and baby products, are exempt. For more information, view the complete list of tax-exempt items from the Minnesota Department of Revenue.

Dozens of cities and counties have adopted local sales taxes to help pay for various major public projects that benefit the community, including new community centers, jails, libraries, parks and trails, and other public amenities. In many cases, these communities determined that a local sales tax was the most effective way to share the cost of the investments with nonresidents who often use and benefit from their public amenities.

In recent years, several metro area cities have approved a local sales tax, including Edina (parks and recreation improvements), Maple Grove (community center renovation), and Golden Valley (new public safety and public works building).

If the 0.5% local sales tax for the new Operations Facility and License & Passport Center is approved, the total sales tax in Roseville would be 8.875%, effective in 2025.

The current sales tax rate in the City of Roseville is 8.375%. This includes the 6.88% Minnesota state sales tax, the 0.5% Ramsey County transit tax, the 0.75% metro area transportation tax, and the 0.25% metro area tax for housing.

No. If approved by voters this November, the 0.5% sales tax would be in place for 20 years, or until the projects are paid for — whichever happens first.

If approved by Roseville voters, the local sales tax can only be used to pay for the approved projects. That is state law. The sales tax cannot be extended or used for any other purpose unless approved by the State Legislature and Roseville voters.

Many businesses are required by law to collect state and local sales taxes from online sales. Products and services that are taxed are the same as those taxed for in-store purchases. In other words, the local sales tax would be applied when the state sales tax is.

However, the laws governing e-commerce are different than those governing in-person shopping in one distinct way. According to the Minnesota Department of Revenue, when you pick up a product at a seller's location, the sales tax is based on that location. So, if you went to a store in Roseville to pick up the item, you would pay Roseville’s sales tax. If the product is shipped to you, the tax is based on the delivery address.

For a full list of taxable and non-taxable items, visit the Department of Revenue’s website.

Online sales are not included in the estimates, which are based on sales data from the Minnesota Department of Revenue. The University of Minnesota Extension Center estimates that about 15% of purchases in Minnesota that are subject to sales tax happen online. This means people who make a lot of online purchases might end up paying more sales taxes than the average resident.

However, if more sales taxes are collected than expected — whether in-store or online — the bonds for the project could be paid off faster, which would reduce the total interest costs the city has to pay for the projects.

The City Council put forward a local sales tax option because it would spread the cost of the projects among residents and nonresidents who make purchases in the city and often benefit from city services. If approved by voters, 64% of the sales tax would be paid by nonresidents, according to the University of Minnesota. That means nonresidents would contribute approximately $49 million of the $76.9 million cost if both projects are approved.