Sales Tax in St. Paul Reaches 10%

It’s not a joke. On April 1st, the sales tax in St. Paul reached a total of 9.88% per sales transaction. This move comes as inflation continues to soar nationwide, and the cost of living continues to increase with it. 

Voters in the city determined last election that they would be okay with increasing the tax by 1% from the original 0.5%. In 2023, the Minnesota legislature passed a new metro-area sales tax of 0.25% that fund public housing and a metro-area transportation tax of 0.75%. With a base sales tax of 6.88% statewide, families in St. Paul will be paying a whopping 9.88% sales tax per transaction.

A 10% sales tax is almost unheard of. It is certainly the highest in the state and ranks among the highest nationwide. Why would anyone buy groceries, cars, services, or goods in the capitol city when they can visit a neighboring city for a better price. Or, better yet, Minnesotans can hop across the Wisconsin border to do their shopping. 

Wisconsin has a statewide sales tax rate of 5%, while the City of Hudson (for example) only tacks on .5% on top of that. This means that you would be paying almost half as much to the Wisconsin government as you would to the Minnesota government.

The tax and spend culture in St. Paul is deadly for working Minnesotans who are just trying to get by. If politicians are hoping to push the taxpayers who are paying their salaries out of the state, they are succeeding. 

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  • Action 4 Liberty
    published this page in News 2024-04-08 22:24:23 -0500