Rochester Residents Surprised to Learn Of DMC Tax
Yesterday a woman posted a photo of a receipt from a local restaurant to the Spotted in Rochester Facebook group. The receipt showed her total bill was $24 and that included a charge of $1.88 for Minnesota sales tax, $0.18 for Rochester city tax, and $0.12 for the DMC tax. The woman asked the group, "Am I missing something?? When did we start getting taxed for DMC??" The post has dozens of comments with another person asking, "So does every business charge this DMC tax?"
This tax has been around for several years so I was kind of surprised to see that people are still learning about it. Most businesses just lump it in under the city sales tax though so I can see how someone seeing DMC on a receipt might be confused.
According to KROC News, the Rochester City Council voted unanimously in March of 2015 to approve a 20-year Destination Medical Center Development Plan and an accompanying increase in the city’s sales tax. The council's vote obligated the city to cover "its $128-million dollar share of the cost of the DMC initiative under the provisions of the state law approved last year and the City Council has chosen to use revenues from a quarter-point increase in the city’s current half-cent sales tax to fund that requirement."
The DMC tax went into effect on January 1st, 2016.
You can visit Destination Medical Center's website to learn all about the 20-year plan to turn Rochester into a global destination for medical care. They say "state officials determined there was a compelling interest to authorize public investments in Rochester to help support Mayo Clinic in Rochester as a global medical destination center."