The Transportation Sales Tax (½ percent sales tax and $20 excise tax on vehicles purchased for road use) was approved by the Scott County Board to help fund road, bridge, and transit projects within the County. The approximately $6 million expected to be raised annually will be used for potential projects identified in an Implementation Plan to improve safety, reduce commute times, and support economic development throughout the County. By Board resolution, the local sales tax will be collected for seven years, from October 1, 2015 to December 31, 2022.
The County has identified numerous projects that will require additional funding to complete. (The complete list of projects are detailed in the Implementation Plan listed below.) Many of these projects will also involve State and Federal funds, with local matches required. The sales tax revenue will help accelerate these projects while allowing the County to use its traditional sources of funding to maintain its current transportation system.
The Minnesota Department of Revenue will administer the local sales tax. This tax applies to the same items that are subject to the state Sales and Use Tax of 6.875 percent, thereby making the sales tax rate in Scott County 7.375 percent. However, the sales tax on motor vehicles purchased for road use will remain at 6.5 percent. Instead, a $20 excise tax must be paid when purchasing a vehicle from a Scott County auto dealer.