Laserfiche WebLink
<br /> I <br /> 1 Response: The state should maintain the tax exemption for municipal bond interest .1 <br /> 2 income. <br /> I <br /> 3 FF-S. City Fiscal Year I <br /> 4 Issue: The fiscal years for the state and cities are offset by 6 months, The state fiscal year I <br /> 5 begins on July 1 while the city fiscal year begins on January 1. Lawmakers have proposed I <br /> 6 changing the city fiscal year to coincide with the state. Such a change, while providing <br /> 7 questionable benefits for cities, would conflict with the current property tax cycle, impair I <br /> 8 historical comparisons of data, force cities to retool accounting systems, adversely impact city I <br /> 9 credit ratings, and could result in state funding gaps. <br /> 10 Response: The state should maintain current law and not change the city fiscal year to I <br /> 11 coincide with the state fiscal year. .. <br /> 12 FF-6. Sales Tax on Local Government Purchases I <br /> 13 Issue: In 1992, the Legislature repealed the sales tax exemption for local government I <br /> 14 purchases. This action increased the costs for local governments and local property taxes by I <br /> 15 an estimated $76.8 million for the state's 1997 fiscal year. This repeal has effectively <br /> 16 increased local property taxes to finance state operations. I <br /> 17 Response: The state should reinstate the sales tax exemption for all local government I <br /> 18 purchases. I <br /> I <br /> 6 League of Minnesota Cities .. <br /> I <br /> ;1 <br /> I <br />