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<br />Request for Action <br /> <br /> <br /> <br /> <br /> <br />To Item Number <br />Mayor and City Council 4.11 <br />Agenda Section Meeting Date Prepared by <br />Consent June 5, 2023 Cal Portner, City Administrator <br />Item Description Reviewed by <br />Elk River and Minnesota Department of <br />Revenue Sales Tax Collection Agreement <br />Reviewed by <br /> <br /> <br />Action Requested <br />Direct, by motion, the city administrator and finance manager to execute the updated local sales and use tax <br />collection agreement with the Minnesota Department of Revenue. <br /> <br />Background/Discussion <br />The Minnesota Department of Revenue updated their agreements with local jurisdictions regarding the collection <br />of local sales and use taxes. <br /> <br />They cited increasing operational costs for rate changes. They now have a a flat rate of 1.35% effective Jan.1, <br />2024. They also moved to a 180-day notice for agreement changes. They will conduct annual audits to ensure the <br />fees cover their operating costs. They are also going to provide only one payment 40 days after tax due month <br />and maintain a reserve for 6 years for refunds, tax error claims, audits, etc. <br /> <br />Our point of contact at Revenue indicated administrators/managers and finance/treasurers typically sign the <br />document. Due to the timeliness of the executed agreement, I have chosen to execute it at your direction. <br /> <br />Financial Impact <br />N/A <br /> <br />Mission/Policy/Goal <br />Elk River Mission Statement <br /> <br />Attachments <br /> Agreement Between the Minnesota Department of Revenue and the City of Elk River for Collection of a <br />Local Sales Tax Sales and Use Tax Use Tax <br /> <br /> <br /> <br />The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional <br /> <br />service, and community engagement that encourages and inspires prosperity. <br /> Updated: August 2020 <br />