City of Manhattan News

Posted on: March 30, 2017

Street sales tax takes effect April 1

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In November, Manhattan voters approved a sales tax rate increase to fund street improvements. That increase takes effect at local retailers April 1. The sales tax at most Manhattan businesses will increase from 8.75% to 8.95%.

The sales tax is expected to generate $2 million annually to be used for repairs to existing streets and Safe Routes to School projects. The 2017 Street Maintenance Program is still based on budgeted funds from the General Fund (existing sales taxes) and Special Street and Highway Fund (fuel taxes). However, as we begin to receive funds from the increased sales tax, additional work may be added to this year's program later this year.

The full $4 million investment in street repairs ($1 million from the General Fund, $1 million from fuel taxes, and $2 million from special sales tax) will be realized in the 2018 Street Maintenance Program.

Sales tax rates in Manhattan

  • 8.95% at most local retailers
  • 9.45% in the Downtown Redevelopment area and at Blueville Nursery
  • The former Limey Pointe TDD north of McCall expires April 1, and sales tax in this district will return to 8.95%

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