Sales Tax Rates on the Rise

Many jurisdictions are looking to raise sales tax rates.  Perhaps in response to lost collections due to internet purchases.

Duluth Considering Raising Sales Tax Rate for Road Improvements

Duluth, Minnesota is considering raising city sales tax by .05 percent for up to 25 years.  The additional tax money will go towards road improvements throughout the city.  The proposal is expected to generate an extra $7 million annually, which is three times more than what is currently used for road repairs.

The city will now vote to put the new referendum on the ballot for this fall.  If the sales tax is raised, residents of the city would pay an accumulative sales tax of 8.875 percent.  The Legislature would ultimately have to approve the increase as well.

Beatrice Looking To Raise Sales Tax For Water Park and Fire Station

Beatrice is looking to fund improvements for a water park and a new fire station by raising their sales tax rate.  They are currently seeking the opinions of residents in the Nebraska city by conducting surveys.  The city could raise the sales tax by a half-cent, producing about $600,000 in extra revenue.  After seeking the opinions of the locals, officials will determine if they will move forward with the plan.

Residents of Woodstock Weigh In on Sales Tax Increase

Residents of Woodstock, Illinois attended the city council meeting to discuss the possible sales tax increase.  Officials are looking to raise the local sales tax from 7 percent to 8 percent, but they also have the option to increase it by only a quarter of a point instead. 

Some residents were not concerned about the 1 percent sales tax hike, but others were against raising the sales tax.  The residents against the tax increase believe people will take their business to nearby cities instead.  Officials believe the new tax increase could bring in an estimated $2.34 million in additional yearly revenue.

Are these potential sales tax rate increases in direct response to the lost collections due to internet purchases?