Record Sales Tax in Hermantown for the month of August 2016

Record Sales Tax in Hermantown for the month of August 2016

October 19, 2016

The City of Hermantown collected the highest amount of sales tax revenue ever in the month of August. The City collected $324,663 in sales tax, which included sales tax from Fleet Farm for 15 days of August. The City of Hermantown had over $1 million in taxable sales per day during August (more than $10,000 per day in for sales tax). Previously, August of 2015 had the highest amount of sales tax collected; $319,498.

The City of Hermantown has had a sales tax since April 1997. In April of 2013, the sales tax rate increased from .5% to 1%. In the last twelve months (August 2015 to July 2016), The City collected $2,640,499, averaging $245,041 per month.

Current state law only allows the use of sales for the following purposes:
1) Extending a sewer interceptor line;
2) Construction of a booster pump station, reservoirs and related improvements to the water system; and
3) Construction of a building containing a police and fire station and an administration services facility.

For more information contact:
John Mulder
City Administrator
218-729-3600

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