StoryCity council rejection of local option sales tax in legislative prioritiesFebruary 19, 2025

Wayzata Council Rejects Local Option Sales Tax Priority

Meeting date: Feb 19, 2025
Published Jul 2, 2025

The Wayzata City Council voted 3-2 Tuesday to reject adding a local option sales tax to the city's 2025 legislative priorities, maintaining focus solely on a food and beverage tax for potential revenue diversification.

Council members Alex Pish, Jeff McDonald and Jeff Senson opposed the broader sales tax, citing concerns about burdening residents and local businesses. The vote means the city will continue pursuing only food and beverage tax authorization from the state legislature, as approved in January.

Just because we can raise taxes doesn't mean that we should," said Council Member Pish, who pulled the item from the consent agenda for separate discussion. "I am philosophically opposed to this.

Mayor Dan Mullen and Council Member Parkhill supported including both options to maintain flexibility. Mullen argued that property taxes currently burden local businesses with $13-20 per square foot in rent costs, making sales tax a potentially less harmful alternative. "It is not sustainable to continue to pound on our property taxes," Mullen said.

The council also heard presentations from the Wayzata Lions Club and Ernest Aselton American Legion Post 118 about their charitable gambling operations. The Lions Club reported gross revenue of $4.8 million in 2024, contributing $63,000 to fire relief and $50,000 in community donations. The American Legion, in its first year of pull-tab operations, generated $382,000 in seven months and donated $66,500 locally, including $20,000 to the city for fire equipment.

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Full analysis

Areas of Interest (4)

  • City Council debating expansion of legislative advocacy to include 'local option sales tax'.
  • Council members split on tax strategy: Food/beverage vs. broad local option sales tax.
  • Charitable gambling revenue surges for both Lions and American Legion post-electronic tab authorization.
  • Concerns over potential resident tax burden despite city claims that tax options provide flexibility.

Votes (2)

Approval of the agenda

PassedVoice vote

Moved by Unspecified · Seconded by Unspecified

Approval of the consent agenda (with one item pulled)

PassedVoice vote

Moved by Unspecified · Seconded by Unspecified

Notable Quotes (3)

Our fiscal year 2025 was 63,000 for the Fire Relief we're estimating about 50,000.

— Nancy Nelson-MacIntosh
Charitable ContributionsFinancial breakdown for Lions Club donations.

We gave the state or the city 20,000 in January so that pretty much was for the first partial year we had.

— Kirk Zaruk
Charitable ContributionsAmerican Legion donation to city fire equipment.

I wanted to pull this to put it on record that I oppose this.

— Council Member Pish
Legislative PrioritiesFormal objection to the legislative priority amendment.

People (5)

Mayor MullenMayor

Presiding over city council meeting and facilitating discussions.

Nancy Nelson-MacIntoshGambling Manager

Lions Club representative presenting charitable gaming financials.

1 quote

“Our calendar year 2024 revenue is 4,815,935.”

Reporting on Lions Club gambling revenue trajectory.

Tim AndersonLions Club President

Long-time resident and Lions member discussing volunteerism.

1 quote

“We try and donate as much locally in the Wietta Plymouth area as we can.”

Describing the donation strategy of the Lions Club.

Kirk ZarukGambling Head

American Legion representative discussing gambling revenue growth.

1 quote

“We're making now about triple what we were before.”

Comparing revenue growth post-implementation of electronic pull tabs.

Alex PishCouncil Member

Opposed local option sales tax in favor of food and beverage tax.

1 quote

“I am opposed to the local option sales tax... I'm not in favor of raising taxes on our residents.”

Stating his opposition to the legislative priority amendment.

Places Mentioned

Wietta City Council ChambersSt. Bart's Church316 Ridgeview Drive1201 Edland Place, Minneapolis1310 Holdridge Terrace

Events & Meetings (3)

  • February 18th 2025 - City Council Meeting
  • January 28th 2025 - Council Workshop and Regular Meeting
  • February 22nd 2025 - Lions Club Waffle Breakfast

Ordinances & Resolutions (1)

Resolution 0425

Accepting a donation from the Wietta Conservancy for the Panaway project.

Source document

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Other Topics from This Document

  • Neighborhood engagement initiative presentation

  • Boards and commissions annual reports and work plans

  • Local sales tax and engagement plan

  • Consent agenda items

  • Wisett Lions charitable gaming and community contributions update

  • Ernest Aselton American Legion Post 118 update

  • 2025 legislative priorities amendment

  • Local option sales tax vs. food and beverage tax strategy

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