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<br />. <br /> <br />e <br /> <br />e <br /> <br />e <br /> <br />CITY OF ARDEN mLLS <br /> <br />MEMORANDUM <br /> <br />DATE: <br /> <br />March 23, 1999 <br /> <br />TO: <br /> <br />Mayor and City Council <br />Brian Fritsinger, City Administrato~ <br /> <br />FROM: <br /> <br />SUBJECT: <br /> <br />Repeal of Sales Tax <br /> <br />Backln-ound <br />The League of Minnesota Cities has been working for the past three (3) years to build legislative <br />support for the repeal of the sales tax on local government purchases. This year, a record number <br />of bills have been introduced to repeal the tax, and committees in both the House and Senate <br />have held hearings on the topic. <br /> <br />While there is support for the repeal of this tax, the repeal would reduce annual state sales tax <br />revenues by an estimated $80 million. Given the recent budget forecast that includes an <br />additional $730 million in surplus state revenue, the timing may be appropriate to convince <br />legislators to eliminate the sales tax. <br /> <br />The City has been delaying purchases on a number of items until the 1999 Legislative Session is <br />concluded, in hopes that the sales tax is repealed and the City can save some taxpayers dollars. <br />Should the Council adopt the attached resolution, staffwill forward it to Senator Runbeck and <br />Representative Krinkie. <br /> <br />Recommendation <br />Staff recommends adoption of Resolution #99-12, "Supporting Repeal of the State Sales Tax for <br />Local Government Purchases." <br /> <br />BF/sls <br />