After months of debate, the North Mankato City Council passed a .5% food and beverage sales tax Monday night that goes into effect next year.
The council voted 3-2 in favor, with Council members Billy Steiner and Sandra Oachs dissenting.
The vote caps off a yearslong effort by North Mankato officials to offset operating costs at Caswell Park. The city touted the tax as a good way to capture out-of-city funding to benefit a regional attraction, restaurant and bar owners say the tax will adversely hurt local business since they’ll have to raise prices.
The Minnesota Legislature included the city’s request for a 1% tax in this year’s tax bill, which the city requested to mirror Mankato’s existing food and beverage sales tax.
Mankato approved a 0.5% sales tax in 2008 to fund operating costs at the Mankato Civic Center. North Mankato’s sales tax is estimated to bring in about $50,000 annually to help Caswell’s yearly deficit of about $50,000 to $125,0000. The tax will also go toward operating costs for a planned indoor recreation center at the park.
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By trey mewes
October 21, 2019