Golden Valley Local Sales Tax

On Nov 7, 2023, Golden Valley voters approved three ballot questions for a 1.25 percent local sales tax to fund the City’s Building Forward plan, which includes projects to address the shortcomings of the current Public Works and Public Safety buildings.

The Golden Valley City Council formally passed an ordinance to impose the local sales tax Dec 19, 2023. This action was followed by the City providing notice to the Minnesota Department of Revenue, the agency that announces all local tax starts, changes, or edits.

The 1.25 percent sales tax will take effect April 1, 2024 and will be added on the gross receipts from retail sales in the city. It will only be applicable to items that are currently taxable. Clothing and staple groceries are non-taxable. View tables showing taxable sales and non-taxable sales.  

Information and forms for calculating and paying the use tax are available on the sales and use tax page of the Minnesota Department of Revenue website. 

Residents and businesses may also owe a local use tax on certain purchases made outside of Golden Valley. The investment of $105 million (plus interest and the cost of issuing bonds) will revitalize and modernize the facilities needed to provide core services to Golden Valley and surrounding cities. 

Here’s how the $105 million for the projects would be divided: 

• $15 million will be used to acquire land outside downtown Golden Valley to develop a new location for a new Public Works building 
• $45 million will be used to construct the new Public Works building 
• $45 million will be used to construct a new Public Safety building on the site of the current Public Works buildings, which will serve as headquarters for the Fire and Police Departments

According to the Minnesota Department of Revenue, the tax would generate approximately $6.25 million each year over 30 years. It will be in place for up to 30 years or until funding obligations are fulfilled, whichever comes first.

For more information about the local sales tax, visit www.buildingforwardgv.org. You will also find answers to frequently asked questions about the project and the impact on and benefit to the community.