An analysis of tax rates indicates that the Minneapolis‐Saint Paul region uses this revenue source at a much lower rate than the majority of peer regions. Most of our peer cities have levied 3 to 4 times the rate applied in the Twin Cities. The 0.25% sales tax rate in the Twin Cities raises nearly $100 million annually, and is used to fund the expansion and operation of the metro area transitways (i.e. light rail, com‐ muter rail, bus rapid transit). In order to continue these programs and improve the Twin Cities’ regular and commuter bus system, additional tax revenue will be needed.
Get the full PDF here TLC Policy Brief – Sales Tax for Transit – Feb 2014