01 When does the sales tax go into effect?

The local sales and use tax will go into effect April 1, 2023.

02 How will the City pay for this investment?

A half-percent local option sales and use tax will finance the investment. Voters approved the tax in November 2022 for the first phase. The City plans to return to the Legislature next session with the same request for the Braemar Arena expansion (Phase 2).

Yes. Over the past five years, local option sales taxes have emerged as an important investment tool for cities and counties to fund major public projects. Edina is one of 15 cities and counties in Minnesota that have authorization from the State Legislature to propose a sales tax to voters in November 2022, including Maple Grove, Carlton County and Grand Rapids. More than 40 other cities have been authorized by the Legislature over the past 20 years to enact a sales tax to help fund regional improvements.

City leaders began gathering input from residents in 2016 regarding the needs of Fred Richards and Braemar parks. Feedback from community meetings and surveys helped shape the investment plan, and the City successfully received legislative approval in 2021 to propose a half-percent sales tax to voters to finance it. Ultimately, Edina residents will decide whether this is the right commitment for our community.

The sales tax option would spread the tax impact of the project across both residents and non-residents, rather than only residents who own or rent property. Approximately 54 percent of a sales tax increase would be paid by nonresidents of Edina, according to a newly updated analysis by the University of Minnesota. A local sales tax option also gives residents the ability to choose how improvements to the city’s parks will be financed.

No. The sales tax expires in 19 years. If the bonds for the parks projects are paid off before then, the sales tax expires earlier. The only way the tax could be extended or used for other projects would be if the Legislature authorized the change and Edina voters approved.