The Two Harbors City Council has adopted a resolution to accept the Two Harbors local-option sales tax increase from 0.5% to 1 %.

In November, voters passed the sales tax increase referendum by about 70%. Following its local approval, the increase needed legislative approval from the House and Senate tax committees. When the joint tax bill was approved at the end of May, the 0.5% increase was included.

The revenues of the tax increase will be used to pay for infrastructural improvements in the capital improvement plan (CIP). Once implemented, the sales tax is expected to provide about $280,000 in revenue annually. The funds would be placed into a designated fund for the street improvement funds and couldn't be used elsewhere.

In addition to the resolution, the city council also approved a motion declaring the first reading of an ordinance amending the city code to allow the implementation of the increase. The second reading of the ordinance is expected at the next council meeting July 8.

The city hopes to have the tax ready for implementation as of Oct. 1, pending local approval from the Minnesota Secretary of the State.