On October 1, 2006, the 0.50% local option sales and use tax and the $20 motor vehicle excise tax, which is in lieu of sales tax, were implemented to finance a portion of the city’s growing infrastructure needs. The initial $15 million sales tax authorization successfully financed a majority of the city’s share of the joint wastewater treatment plant constructed with the City of Brainerd, the entire cost of Baxter’s newest water tower near Highway 371 and College Road, and a portion of the city’s water treatment plant.
In 2014, the City of Baxter sought and was given legislative and voter approval to extend the existing local option sales and use tax and motor vehicle excise tax. Capital projects included in the latest authorization include: $32 million of water, sanitary sewer, storm sewer, and traffic safety improvements and $8 million towards improvements to the Brainerd Lakes Regional Airport. The current sales tax is authorized until the earlier of December 31, 2037 or when $40 million plus any bond interest and issuance costs is generated to the pay for the proposed infrastructure improvements. The projects will be financed with a combination of pay-as-you-go funds on hand and by bonds backed by sales tax proceeds.
More information about the tax can be found on the Minnesota Department of Revenue’s website at www.revenue.state.mn.us. Specific questions regarding the local option sales tax should be directed to the Minnesota Department of Revenue. The State is administering and collecting the local option sales tax similar to the regular sales tax.
MN Dept of Revenue Contact Information:
Corporate and Sales Tax Division
Mail Station 6330
St. Paul, MN 55146-6330
Questions regarding the motor vehicle excise tax can be forwarded to the City of Baxter Finance Department who is administering and collecting that portion of the tax.
In the links below are a City map showing city boundaries, a list of street names and address ranges as of September 2016, and a Motor Vehicle Excise Tax Report.