Elly DesLauriers

The Minot Park Board took a step toward adopting a half percent sales tax with first reading of an ordinance on Thursday.

A second reading will be required, but because the park board’s authority to levy a sales tax must come through the City of Minot, the board will hold a joint meeting with the city council next Tuesday at 1 p.m. in City Hall to seek its approval. Ultimately, if approved at the board and council levels, the tax proposal would go to city voters.

A half percent sales tax is estimated to currently generate $6 million a year.

The park board waited until after Tuesday’s election to act on an ordinance because the wording was dependent on the outcome of Measure 4, the property tax elimination proposal. Had the measure passed, the sales tax would have been directly strictly to facilities projects. Because it failed, the board is proceeding with a request for a sales tax to lower property taxes by 14 mills, or about 40%, and fund new projects and maintenance.

The intent is to use sales tax income to provide for bond payment on a proposed turf facility at Maysa Arena as well as operational costs for facilities, said Elly DesLauriers, executive director for the park district.

The ordinance also states the ordinance will be reviewed after five years.

“If sales tax is doing well, we could have the opportunity that we would even be able to reduce them more at that point,” DesLauriers said of property taxes. “We have heard loud and clear that property taxes are a very hot button issue, and we believe this is Minot Park District’s opportunity to reduce those.”

She added the district’s facilities bring in tournaments and people from outside the community, increasing sales tax revenue. She called it a chance to “put money towards those facilities that are being used as well and start creating some more economic impact for our community.”

Minot resident Tom Warsocki spoke in opposition to the sales tax. Increasing the sales tax will give Minot one of the highest local taxes in the state, he said. The state has a 5% sales tax, Minot has 2% and Ward County has a half percent.

“That, I believe, will send people out of this city to go shopping. They’ll go to other places that have a lower sales tax because 8% is a lot. And yes, if you spend $20,000 a year, a half a cent sales tax is only an extra $100, but people that are on fixed income, or those that are in a lower economic environment, they don’t have that money today,” Warsocki said. “I think this is the wrong time to add a half a cent sales tax to an already way too high sales tax in the city.”

He said he agrees there are many residents who would like a nice indoor facility, but cities such as Williston and Watford City that have built facilities are finding they need more money to pay for operation.

“I believe we will have the same issues here,” he said.

The board voted 5-0 to approve the ordinance and refer it to the city.