(KNOX) – Grand Forks Mayor Brandon Bochenski says the city is still pursuing an increase in the city sales tax to offset the city’s portion of property taxes on a primary residence.
Bochenski recently floated the idea to work in concert with the state’s initiative to pay $1,600 of a primary residence property tax bill. The sales tax increase, in conjunction with the state relief, would eliminate the property tax a homeowner would pay to the city.
Property taxes to other taxing entities, such as Grand Forks County, the school district, and parks would remain in place.
Bochenski says the plan is possible because there is space available in the city’s sales tax, considering the sales tax rates in neighboring cities.
“If we did this, the city’s rate would be 7.625%. East Grand Forks is 8.375%. We’d be less than Grafton, less than Fargo. That’s why I like it, because we have space on the consumption side,” said Bochenski.
Bochenski also defended the plan against criticism from those that do not reside in Grand Forks, and say they do not want to pay higher sales taxes in Grand Forks to subsidize that which property taxes should pay for.
“That’s what’s already happening. If you go to Grafton, they’ve already adopted a sales tax up to 8%, which is covering things that property tax would normally pay for,” Bochenski explained.
The city must clear up legal hurdles on the plan before moving forward, and Bochenski states the city has had meetings with state agencies, including the Governor’s office, to start the process.
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