Duluth Could Take in $8M Annually with Governor's Budget Plan
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DULUTH - The City of Duluth could add nearly $8 million to its annual revenue stream if Gov. Mark Dayton's budget plans moves forward.
That is because Duluth has its own sales tax that could be made broader with the proposal.
Getting a tattoo typically is not cheap.
However, it could be even more expensive for customers in Minnesota if Gov. Mark Dayton's budget plans moves forward.
"It's ridiculous to be honest," Rob Rutka from Duluth said.
Not everyone is thrilled about the idea of taxing more items in the state, including tattoos and dozens of other services.
"Essentially, you're taxing a person for expression and that's wrong, just plain wrong," Rutka said.
While the governor's proposal may be a pain for some, it could also be a huge bonus for cities like Duluth.
"Based on his plan, the house research did an analysis and said the City of Duluth would receive $7.9 million additional than we collect right now," Duluth Mayor Don Ness said.
That money would be added to the $12 million Duluth already collects from its one percent sales tax, after it starts being enforced on the new services.
However, Ness said it would not lead to any expansions.
"If there are additional revenues that come into the City of Duluth, we're not going to use those to go out and hire a bunch of city employees," Ness said.
Instead, Ness said it could help fill the $6 million hole created after the Fond-du-Luth casino stopped sharing profits with the city in 2009.
"It's in my mind that we would use those new revenues and dedicate them to street improvement and allow us to do the street work that's obviously necessary and needed," Ness said.
It is an idea even the critics can get on board with.
"Seeing it go towards public works is probably a good thing," Rutka said "I mean, our roads are bad enough."
But for now, people wanting tattoos, piercings, or haircuts in Minnesota do not have to worry.
The services will remain tax free until the Minnesota legislature hashes out the final budget details.
Other places that have their own sales tax and could benefit from the governor's plan include Cook County, Hermantown, Proctor and Two Harbors.
The governor's plan also calls for the overall sales tax to be reduced to 5.5 percent.
A link to the new items that are on the potential list to receive new taxes can be found under the "links" tab.
