Legislature changes city sales tax rules

Cloquet city administrator Aaron Reeves said the Minnesota Legislature and Gov. Tim Walz approved changes to the city’s existing half-cent sales tax legislation. The changes will allow the city to tap into funds that were originally earmarked for infrastructure for commercial development at Highway 33 and Interstate 35 that simply isn’t going to happen.

Reeves said the city has already lined up about $4 million in projects for the newly available sales tax dollars, and the council would need to allocate another $1.5-$1.8 million, or it could decide to not fund the other projects. They will likely discuss options for the remaining sales tax dollars during the work session prior to the June 18 council meeting.