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Marshall looks at extending local sales tax

Tax revenues would go to replace Marshall Aquatic Center

MARSHALL — It was just the first step in a long process. But on Tuesday night, the Marshall City Council got the ball rolling on the possible extension of the city’s 0.5% local sales tax. Council members passed a resolution proposing the tax extension, which will be submitted to state lawmakers this month.

If the Minnesota Legislature approves, the sales tax question will come back to Marshall voters, said Marshall City Administrator Sharon Hanson.

“Our key focus is to extend the sales tax, not to raise the tax,” Hanson said.

Hanson and Marshall City Council members said they hope the city can use sales tax revenue to help pay for a new aquatic center, and an indoor recreation facility. Together, the two projects have a projected cost of about $20 million.

The Marshall Aquatic Center is currently one of the oldest city pools in Minnesota. In addition to having an outdated bathhouse and concessions building, the pool leaks at a rate of 12,000 to 15,000 gallons of water a day, city staff said.

Last fall, a survey of more than 300 Marshall voters showed strong support for using local sales tax to pay for parks and recreation projects, city staff said. A total of 74% of survey respondents said they would be more likely to support a half-cent sales tax to support parks and recreation projects, instead of increased property taxes.

The same survey also showed community support for having an indoor recreation facility or play area in Marshall. However, city staff said at this point they don’t have specific plans for what would be included in such a facility.

Marshall voters approved a 0.5% sales tax in 2012, to help pay for expansions at the MERIT center and construction of the Red Baron Arena and Expo. Under the resolution brought before the council Tuesday night, the 0.5% sales tax would be extended for a period of 20 years.

Council members unanimously approved a resolution proposing to extend the local sales tax. Hanson said the resolution, along with documentation explaining the importance of the projects that would be funded by the tax, will go to the Minnesota House and Senate tax committees. The Legislature needs to receive the resolution by Jan. 31, she said.

“This is step number one in a very long process,” said Marshall Mayor Bob Byrnes.

“You’ll have multiple times to consider whether you want to extend the sales tax,” Hanson told city council members. If the Legislature gives permission to enact a sales tax, the city would need to take action to officially accept it. Then, they would need to hold a public referendum, and pass a city ordinance before the tax extension could take effect.

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