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Golden Valley Proposes Sales Tax Increase to Replace Aging Buildings

5:06 PM | Thursday, January 19, 2023

An effort is underway in Golden Valley to replace several aging city buildings using money raised from a new sales tax.

But first, the plan needs the approval of the state legislature and Golden Valley voters.

This week, the Golden Valley City Council unanimously approved a resolution to implement a sales tax of 1.25 percent to fund a new public safety building that would house the city’s police and fire departments.

golden valley sales tax increase

Golden Valley’s public safety building is one of the buildings that would be replaced if the sales tax increase is approved.

The tax would also fund a new public works building outside of the downtown area to allow for more housing options.

Public works employees say some of their buildings (they currently operate out of four buildings on two different sites) are more than 50 years old. Some aren’t equipped with women’s bathrooms, and they also lack adequate storage for their equipment.

“We are busting out at the seams,” said Public Works Director Tim Kieffer. “And we do have damage to the buildings. We do have damage to the equipment because we can’t maneuver within those buildings. Doors are too narrow.”

golden valley sales tax increase

Golden Valley officials say the city’s public works buildings are old and lack adequate storage space for equipment.

The sales tax would generate $6.25 million annually to fund the projects, which would cost around $190.5 million in total.

“I think this is a way to diffuse costs to ensure that people who come use our services pay their fair share of 1.25 percent and not put it on taxpayers who live in Golden Valley alone,” Golden Valley Council Member Maurice Harris said during Tuesday’s meeting.

“I do worry about the impact this could have on small businesses,” said Golden Valley Council Member Denise La Mere-Anderson, who voted to approve the tax increase. “I worry about the impact that it has on some of our community members that maybe aren’t as mobile that have to do some of their commerce within Golden Valley.”

If the state legislature approves the sales tax hike, Golden Valley voters will have the final say during the November election.


Related: Golden Valley Asks for Input on Downtown Area, City Hall Campus


Delane Cleveland, reporting

Golden Valley

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