Tax bill subsidizes megamall expansion

"MN Legislature"

05/23/2007

By Chris Serres,
Star Tribune
Last update: May 22, 2007


In an odd twist of events, the Mall of America's shoppers and business owners throughout the metro area could end up subsidizing the megamall's $1.7 billion expansion courtesy of provisions slipped into the tax bill late Monday.

Just minutes before midnight Monday, legislators approved a tax bill that would increase metrowide property taxes paid by businesses to help fund the construction of a $180 million parking garage for mall expansion. The bill also gives Bloomington authority to impose a bevy of new taxes, including a 1 percent lodging tax throughout the city -- atop the current 13.65 percent rate -- and a 1 percent sales tax on purchases at the megamall.

Although Gov. Tim Pawlenty has threatened to veto the tax bill, the proposal makes it clear that state legislators expect area businesses and shoppers -- rather than the state government -- to foot part of the bill for the mall's proposed expansion. Just how much the proposed tax increases would raise remains unclear.

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