Decision for Voters
How to Pay for the New Jail: A Local Sales Tax or the Property Tax Levy
Currently, the new $28 million detention center is being financed by the county’s existing property tax levy, meaning the full cost is being paid solely by those who own homes, commercial property or farmland in the county. Winona County is proposing a local sales tax to replace the property tax as the funding source for the new facility. If approved, the county board will lower the preliminary property tax levy for 2025.
As part of the general election this November, Winona County voters will decide whether to authorize a quarter-cent (0.25%) local sales tax to fund the design, construction, and financing costs of the newly built detention center.
The referendum is not about approving the new county jail – only how to pay for it.
If approved by voters: The local sales tax would be in place for up to 25 years, or until enough revenue has been raised to repay the financing bonds, whichever happens first.
If the local sales tax fails: homeowners and commercial property owners will continue paying for the newly built county jail using collections from the existing property tax levy.
Winona County voters will have the final say on Nov. 5.
Why a Local Sales Tax?
A local sales tax would spread the cost of the new county jail among residents and nonresidents who make purchases in the county. The County Board wants residents to have the opportunity to decide whether to share the cost of the facility among nonresidents, or whether only local property owners should continue to pay for it.
If approved by voters, nonresidents would contribute more than $10.5 million of the cost of the newly built $28 million jail.
The County Board would be able to reduce the 2025 preliminary property tax levy, which funds county services, infrastructure, and operations, if the local sales tax passes.
Impact of the Local Sales Tax
A quarter-cent (0.25%) local sales tax amounts to one cent for every $4 spent. For example, 5 cents would be added to a $20 purchase made in Winona County.
If local sales tax passes, each county resident would pay about $1.22 per month, or less than $15 per year, according to a University of Minnesota study.
Essential goods, including groceries, clothing, prescription and over-the-counter drugs, feminine hygiene products, and baby products, are exempt. For more information, view the complete list of tax-exempt items from the Minnesota Department of Revenue.
The local sales tax can only be used to pay for the recently built county jail. Collections from the tax cannot be diverted to other projects.
The sales tax is not permanent and must expire as soon as the jail’s bonds have been repaid. That is state law.