EGF Sales Tax

EGF Sales Tax Click to Enlarge

The East Grand Forks (MN) council is expected to approve the formal agreement tonight (Tuesday) with the Minnesota Department of Revenue for collection of a one-percent sales and use tax. Over 70-percent of voters in East Grand Forks approved the tax hike in March of last year to pay for repairs to the city’s public pool. Cracked pipes prevented the swimming hole from opening this summer. The one-percent tax is slated to begin January 1st.

The agreement with the state spells out collection…remittance…and reimbursement costs.

The East Grand Forks sales tax is expected to generate around 660-thousand dollars per year. It’s slated to come off the books in less than five years - or when a maximum two-point-eight million dollars has been raised.

In addition to the one-percent hike the sales tax rate will climb another point-two-five percent for all of Polk County next year for transit services.

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