close
close

Taxes on my left, taxes on my right – Post Bulletin

Taxes on my left, taxes on my right – Post Bulletin

Dear Answer Man: Would it be possible to have a public vote on the Rochester Public School referendum versus the sports complex? We are being asked to pay $65 million for a sports complex. We are also being asked to pay about $20 million more per year for Rochester Public Schools. Paying for both seems like too much of a burden on my budget. Is there a way to vote on one of these tax increases? — Taxed too much.

Dear Taxpayer,

My condolences for your wallet.

According to CPA Advisor, Minnesotans pay the seventh-highest total tax burden in the country. So, another tax to pay, especially in these necessarily frugal times, seems like an insult to an insult.

I say all this to say this: if you live in Rochester and if you are a voter within the RPS, you have already had the opportunity to vote on these taxes and in the case of the RPS you will soon have the opportunity to do so again.

Let’s start with the sales tax, which is needed, among other things, to finance the sports complex.

The half-cent sales tax, a tax we have paid in Rochester for years, was extended on November 7, 2023, to raise an additional $205 million over up to 24 years.

That won’t take too long.

Some will say that it is not a tax increase because it is already a tax that we pay, and there is some truth to that. If they were to drop it, it would of course be one less tax burden for you, me, and everyone who shops in Rochester.

But the good news is that tax isn’t just paid by Rochester residents. Because it’s a sales tax, Rochester visitors — of whom there are plenty — also pay the tax on taxable items.

In addition to $50 million for street maintenance, $50 million for an economic development fund focused on housing and $40 million for flood control and water quality, the tax will also go toward a planned $65 million regional sports complex.

That complex will also help to attract more visitors to Rochester, who will likely buy things and pay sales tax, which will lighten your load.

All of this was voted on by a majority of 53.6% of Rochester voters after many public meetings and much discussion.

And now the referendum on school taxes.

Voters rejected a 10-year, $10 million-a-year levy at the ballot box last November — when voters approved the sales tax extension. But RPS says it still needs the money. So you’ll get another chance to vote on the RPS levy, a per-pupil levy that would generate about $19.4 million a year. Why “about?” Well, since it’s per pupil, it would change based on the number of students in the district.

This is a property tax rather than a sales tax, so it would be different who pays and how it is collected. But a tax is a tax. The question for voters is, do they want to pay more taxes or watch RPS cut, cut, cut again to make up for the difference of about $20 million a year?

It’s a fair question and I’m sure well-meaning people on both sides have opinions on it.

So, to answer your question, you and other voters have been given a choice. And you will have a choice again on RPS. The last referendum was a little more narrowly focused. This is a little more broad and inclusive. I think if it passes, the district will not reach out again anytime soon. And if it doesn’t pass, they will try another tax level after some serious cuts.

But the choice, Taxed, has always been yours and your fellow voters’.

Answer Man Logo

Send questions to Answer Man at

[email protected]

.