County sales tax would supplant use of property tax for Safety Center payment

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When the General Election comes around in November, Rice County residents will have another referendum upon which to decide, this one courtesy of the Rice County Board of Commissioners.

Rice County issued a statement saying the County Board has approved a referendum on a .375% county-wide sales tax to pay for the new Public Safety Center set to open this fall. Proceeds from the tax would be used to repay debt from the project and would not be available for any other purpose.

The statement said an increase to the county sales tax would mean non-residents who shop in Rice County would contribute to payment for the Public Safety Center. As is the case with all sales tax in the State of Minnesota, the tax would not be assessed on what are defined as “essentials” by the state, including groceries, medication, baby products, clothing and motor vehicles.

Construction of the Safety Center, which will house the Rice County Sheriff’s Department and the Rice County Jail, began in fall 2022. The new facility became necessary following notification from the Minnesota Department of Corrections that due to a lack of space for recreation and programming, the Rice County Jail, which opened in 1975, was no longer an acceptable facility. The county was told to make changes, or the jail would be reclassified as a 90-Day Lockup. A reclassification would have been costly for the county, involving additional transportation and out-of-county housing costs, that were estimated at $1.5 million annually.

The County Board authorized the sale of nearly $49 million in bonds to finance construction of the 83,000-square foot Public Safety Center in 2021. The first debt repayment was made in 2023 using funds from the county’s property tax levy.

During the 2023 session, the state legislature authorized Rice County to put the proposed sales tax before voters. If approved the tax would take effect in 2025 and last a maximum of 30 years though it could end sooner if the bonds are repaid earlier than anticipated. If the tax is not approved, the Safety Center will continue to be financed via the county property tax levy.

Sheriff Jesse Thomas said he hopes the Safety Center will be up and running by the beginning of November.