City right to examine tax structure
It seems unlikely that the local economy, and thus tax revenues are going to skyrocket in the next year or so. This puts the City of Minot in a tough spot, with budget constraints and mounting debt.
That’s why discussion about the first and second penny sales tax at this point makes good sense.
Minot’s first penny of sales tax is split among permanent flood control, 50 percent; construction, operation and maintenance of Minot area improvements, 25 percent; retention and creation of jobs, 15 percent; and property-tax relief, 10 percent. The second penny is designated for infrastructure, 40 percent; community facilities, 30 percent; and property-tax relief, 30 percent. Each penny brings in just over $9 million.
The need to mitigate for flood control funding is fueling the decision to examine the tax structure, but it is also a good time to re-examine the entirety of the allocation stream. Times and conditions change and there is no formula that will necessarily achieve the best, desired outcomes in all situations.
Obviously the public must have a voice in any change, and the public is urged to remain prudent and stay abreast of the situation.
However, it is a smart, pre-emptive move to begin this examination and discussion now, before a crisis level is reached.
Hopefully, the city will take a good look at tax structure and find innovative fixes for the challenges on the horizon. It has to start somewhere and, in this case, that means being open to new possibilities.