December 11, 2012 by Sarah M
By Nick Halter
Earlier this month, the state of Minnesota released numbers showing that the state’s funding source for a new Vikings stadium – electronic pulltabs — weren’t meeting projections.
A city of Minneapolis released its third quarter financial report this week showing that the city’s funding sources — sales, lodging, food and liquor taxes — are performing quite nicely.
Through September, sales tax revenue was up 4.5 percent over the same period in 2011. The number crunchers who drafted the Vikings stadium bill had estimated for annual growth of 2 percent.
Those tax revenues — a citywide half-cent sales tax, a 3 percent downtown food and liquor tax and a 2.6 percent lodging tax — generated $40.62 million through September, up $1.75 million from last year.
“All the local tax categories are ahead of 2011, as people increase spending and take advantage of downtown lodging, dining, and drinking opportunities,” the report says.
Mayor R.T. Rybak, during the stadium debate, had said that the 2 percent increase estimates were conservative.
As the Star Tribune reported, the more the city collects, the more it has to send to the state.
The paper also reported that for the past 10 years, the four taxes grew by an average of 2.6 percent. So it appears the city is on track this year to out-pace both its projections and its historic trends.
But the big question: Did downtown patrons really drink 16.7 percent more booze in 2012 than in 2011, as the chart above illustrates?