Combat Inflation in Red Wing
6 Sep 2022
Inflation is a prominent aspect of life across the United States today, impacting everything from groceries to gasoline. Businesses are seeing their goods’ cost soaring and consumers are paying for it at the checkout stand and in their monthly bills, leaving many wondering how they can save money. For businesses and residents of Minnesota, a move to Red Wing could be the answer.
The U.S. Bureau of Labor reported the July 2022 Consumer Price Index for All Urban Consumers (CPI-U) to have increased 8.5% from July 2021, a staggering rate not seen since the 1980s. That inflationary impact on employees is significant, with real average hourly earnings decreasing 3.6% from July 2021 to July 2022.
Minnesota is known as a fabulous place to raise a family. Additionally, Minnesota has a large, vibrant and diverse economy. But within the state, Red Wing offers several advantages for businesses and individuals to retain more of their funds.
Lower your personal taxes by moving to Red Wing.
Red Wing’s sales tax rate is 7.375%, compared to 7.875% for St. Paul, 8.025% in Minneapolis and 8.125% for Rochester. A significant factor in the lower rate is Goodhue County has no county-level sales tax. With lower sales tax rates, a family makes more each paycheck, even if their salary doesn’t go up. The best part of this strategy is that it continues to yield dividends year after year. Even when inflation calms down, people in Red Wing will still benefit from having lower taxes than neighboring metropolitan areas.
Property taxes paint a favorable picture in Red Wing as well. Goodhue County’s property tax is 1.11%, compared to 1.25% for Hennepin County and 1.27% for Ramsey County. On a $250,000 home, a savings of approximately $400 per year.
Lower your cost of living in Red Wing.
It’s more affordable for families to live in Red Wing than in most U.S. states, a significant draw for business owners and their employees. According to salary.com, Red Wing’s cost of living was 5% lower than Minneapolis in the first quarter of 2022. Additionally, healthcare costs were 37% lower in Red Wing, food costs were 17% less, energy costs were 5% less and transportation costs were 8% less. For example, gas prices were approximately $0.25 per gallon lower in Red Wing and Goodhue County compared to the Twin Cities.
Red Wing offers incentives for new business and business expansion.
When businesses move to or expand in Red Wing, they can qualify for various financial incentives that can help either finance the project or help to reduce the cost through grants and tax credits. For example, a substantial part of downtown Red Wing is located in a qualified census tract for new market tax credits to support job creation. Additionally, the Red Wing Port Authority has financing resources available for redevelopment projects, while a local active Tax Increment Financing (TIF) policy allows for redevelopment, renewal and housing-related projects. The Red Wing Port Authority has further information on these incentives, loan programs, and other financing tools.
Land is affordable in Red Wing.
Companies seeking to relocate to or expand in Red Wing find the needed sites and buildings. Businesses seeking industrial, commercial and office space can begin developing shovel-ready sites in business and development parks or move into existing facilities in Opportunity Zones. Interested parties can peruse more sites and buildings at the Red Wing Port Authority.
Don’t miss the opportunity to save money and combat inflation by moving to Red Wing.
Inflation is at its highest rate since 1981, but it doesn’t have to impact you or your business as strongly. While moving to Red Wing saves money, employees do not have to sacrifice their earning power, as evidenced by Red Wing’s median household income of $57,056, comparable to St. Paul. And though moving does take time and energy, the long-term financial benefits are worth the investment.