The tax is one half of one percent (0.50%). On a taxable $100 purchase, the added tax will be 50 cents.
What will the tax be used for? Is the County able to use this funding to hire new people?
The tax will be used for all transportation project related costs detailed on the McLeod County Local Option Sales Tax - Proposed Project List as approved by the County Board. McLeod County may not use the tax to hire new employees.
The tax is effective January 1, 2020 and will continue until December 31, 2049 or until revenues raised are sufficient to finance the identified transportation improvements, whichever occurs first.
No. The motor vehicle sales tax, or MVST, is a 6.5% tax applied to the sale of new and used motor vehicles registered in Minnesota. The rate is based on the purchase price, and the tax is imposed instead of the state general sales tax. The proceeds are constitutionally dedicated currently 60% to the Highway User Tax Distribution Fund for state and local highway systems and 40% to Minnesota transit. Regular state sales tax is not collected on vehicle purchases, so the transportation sales tax would not be collected on them.
There is no provision for a referendum in the state law; primarily because the County must be so specific about what the revenues are spent on, and it must be a capital cost related to a transportation project.