Northfield Moves Toward Local Sales Tax Referendum

By Rich Larson, KYMN News

The Northfield City Council has unanimously approved a resolution to petition the Minnesota Legislature for permission to place a half-cent local option sales tax on the November ballot. The proposed tax would fund major capital projects, including improvements to the Northfield Public Library, upgrades to the Northfield Community Resource Center (NCRC), and enhancements to riverfront parks.

Mayor Erica Zweifel and City Administrator Ben Martig emphasized that the sales tax would apply only to taxable goods and services—such as restaurant meals and retail purchases—while essentials like clothing and groceries would remain exempt. 

Martig said one of the city’s goals is to diversify the city’s revenue streams, and the local option sales tax would do that.

“One of the benefits to doing this, and a reason why we are looking at this, is the council’s interest in looking at alternative revenue sources, in particular sources that are alternatives to property taxes. The city would like to have a more diverse revenue base. We’re going to continue to try and grow our tax base as well to reduce costs, but this would come from a different bucket.” 

A key advantage, both Zweifel and Martig noted, according to a University of Minnesota Extension study, is that an estimated 40% of revenue generated by the tax would come from non-Northfield residents. “People who visit and spend money here help to pay for these improvements,” Martig said.

Mayor Zweifel said the initiatives that would benefit from the tax revenue were selected for their regional impact, which is a factor the Legislature considers when granting approval. 

“One of the big things they think about when they’re evaluating this is the regional impact of your project. And so that’s one of the reasons we’ve selected these three projects, is that we can know and quantify the regional impact of the library, how many books are being checked out, and the flow of traffic through the library. Same thing with the NCRC. We know that it has a countywide, if not even further, draw.” 

The library plan includes exterior erosion control, accessibility upgrades, and interior improvements. The NCRC, home to numerous community partners, needs costly HVAC replacements. Riverfront park upgrades could include new or refurbished bathrooms and playground improvements.

If lawmakers approve the request, the council must accept the legislative action, finalize ballot language by early June, and launch an informational campaign ahead of early voting in September. “It’s the first yes of about 14 steps,” Zweifel said, noting the process includes multiple council votes and final voter approval.

The timing is tight. With the Legislature set to convene in mid-February, the city has until the end of January to submit its request.  A previous moratorium prevented action last session, but with that lifted, Northfield joins other Minnesota cities exploring this option. “We’re excited to have this tool available,” Zweifel said. “It’s part of our broader strategy to strengthen the city’s financial position.”

Rich Larson is owner and General Manager of KYMN Radio. Contact him at rich@kymnradio.net

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