Local sales tax ending, renewal up to Legislature

City News June 5, 2026

The Albert Lea City Council will vote Monday on ending the half-cent sales tax implemented in 2005 to fund watershed projects. The city expects the sales tax to reach its maximum amount of $30 million late this summer so is proposing to end the tax on Sept. 30. This schedule gives the State of Minnesota time to inform businesses that collect the tax to stop doing so on Sept. 30.

The city and Shell Rock River Watershed District had hoped to renew the tax to fund continued lake improvement projects along with expanding the Albert Lea Public Library, building the Songbird Trail, upgrading Snyder Fields and building the Miracle Ballfield.

Under state law, the Minnesota Legislature must approve putting a sales tax on the ballot for voter approval. In this year’s legislative session, sales tax requests from several cities failed to make the final tax bill.

The City of Albert Lea and Shell Rock Watershed plan to seek legislative approval again in 2027. In the meantime, they and several community partners continue to raise funds and seek grants for their projects.

Read more about the sales tax issue on the Minnesota Public Radio website.