Laserfiche WebLink
<br /> Local Option Sales Tax Analysis for Elk River, MN 24 <br />Retail (non-store) and Other Services <br /> ($Millions) <br />Actual taxable sales $16.44 <br />% of total taxable retail and service sales 6.2% <br /> <br />Analysis with Adjustments <br /> <br />Residents' $ share $14.80 <br />Non-residents' $ share $1.64 <br /> Total $16.44 <br />Non-resident share per group 10% <br /> <br />Analysis and Recommendations for Retail and Other Services <br />The rest of retail and service sales will be largely local. This group includes healthcare, waste <br />management, rental/lease services, administrative support, and the performing arts. This mix of <br />business types is very diverse, yet due to the local nature of the businesses, Extension assumes 90 <br />percent of these sales are local. <br />Agricultural Production, Forestry, Construction, Manufacturing, Wholesale <br />Operations, Transportation, Civic and Professional Organizations, Government, <br />and Sales Information Suppressed for Business Confidentiality <br />The above industries and services generate a significant portion of total taxable sales in Elk River <br />(32%), a proportion greater than other communities for which Extension has conducted a LOST <br />analysis. This amount will be subject to any new sales taxes, including a local option sales tax. <br />A diverse mix of businesses fall into these non-retail categories and a large portion of sales are <br />within a suppressed or non-disclosed subcategory. This diversity makes it difficult to understand <br />the customer mix of these businesses, however Extension broke out each known major subcategory <br />and assigned assumptions according to their business type: <br />Subcategory 2015 Taxable Sales <br />Construction $4,539,053 <br />Manufacturing $62,492,218 <br />Wholesale $12,683,470 <br />Undesignated $42,552,699 <br /> <br />Extension estimated that overall 70 percent of sales are to non-residents. Extension assumed that <br />some subcategories such as agriculture and manufacturing sell primarily (90%) to non-resident <br />customers, whereas less construction, wholesale, and undesignated businesses split their sales <br />between resident and non-resident customers. This is conservative consider that all lodging sales are <br />in the undesignated category, the vast majority of which are to non-residents. However, since it is <br />impossible to know the exact breakdown of business types in ‘undesignated,’ Extension set at a <br />conservative 50%. <br />Residents’ $ share $36.9 <br />Non-residents $ share $86.2 <br />Total $123.1 <br />Non-resident share 70%