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Sales Tax Some Minnesota cities have sought and obtained special legislative authority <br /> for a local sales tax. The funding potential of a local sales tax would depend <br /> on its rate and application. Using 1994 tax revenue, a tax rate of 0.5% would <br /> raise almost $325,000 in revenue. <br /> In addition to its funding capacity, a sales tax offers other positive factors. <br /> Depending on the enabling.legislation, it could be used to finance any imple- <br /> mentation action for the Downtown Plan. The availability of this revenue <br /> would lessen the burden on more traditional funding sources, such as property <br /> taxes and special assessments. This tax also passes a portion of costs on to <br /> non-residents. <br /> A local sales tax produces concerns about placing the community at an eco- <br /> nomic disadvantage. If the cost is passed on to the customer, they may choose <br /> to shop outside of Monticello. If the business absorbs the tax, then it may <br /> impair business development <br /> • <br /> • <br /> 4111 <br /> • _ A New Bridge <br /> Revitalizing Monticello's Downtown and Rlverfront <br /> Page 4:10 <br />