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<br /> Local Option Sales Tax Analysis for Elk River, MN 4 <br />Figure 1: Elk River worker in-flow and out-flow (Source: 2016 U.S. Census Bureau OnTheMap <br />application, Longitudinal-Employer Household Dynamics Program, http://onthemap.ces.census.gov/) <br /> <br />Figure 2 below shows the estimated percentage breakout—across all merchandise categories—for <br />the adjusted analysis to more accurately reflect the city’s economic and consumption circumstances. <br />Based on these findings, we estimate 54.5 percent of all taxable retail and service sales would be <br />made by permanent city residents, and the remaining 45.5 percent of taxable sales would be by non- <br />residents. <br />Figure 2: Estimated taxable sales using an adjusted trade area analysis <br /> <br />Extension also estimated the dollars generated by different levels of a local option sales tax and <br />what year-round residents would pay at each level compared to non-residents. Using the adjusted <br />trade area analysis, these dollar amounts are shown in Figure 3. <br />Elk River would have realized as much as $1.94 million in tax proceeds if the full half percent tax <br />were enacted in 2015. If the city does realize $1.94 million, the proportion of the tax total paid by <br />non-residents is estimated to be $885,000, and the proportion paid by year-round city residents is <br />estimated to be $1.06 million. <br /> <br /> <br /> Taxable Sales <br />$millions <br />Percentage <br />of Sales <br />Elk River Residents $211.7 54.5% <br />Non-residents $177.0 45.5% <br />Totals $388.7 100%