CCP 04-26-1999 - Laserfiche WebLink

Home Browse Search

-\ e e e DR.A~FT ARDEN HILLS CITY COUNCIL - MARCH 29, 1999 15 C. Resolution #99-12, Supporting Repeal of the State Sales Tax for Local Government Purchases Mr. Pritsinger explained that the League of Minnesota Cities has been working for the past three years to build legislative support for the repeal of the sales tax on local government purchases. This year, a record number of bills have been introduced to repeal the tax, and committees in both the House and Senate have held hearings on the topic. The City has been delaying purchases on a number of items until the 1999 Legislative Session is concluded, in hopes that the sales tax is repealed and the City can save some taxpayers dollars. Should the Council adopt this Resolution, Staffwill forward it to Senator Runbeck and Representative Krinkie. Mr. Pritsinger advised that the Staff recommends adoption of Resolution #99-12, "Supporting Repeal of the State Sales Tax for Local Government Purchases." Mayor Probst asked if the purchases being delayed would be able to wait until June. He noted that this issue would most likely be discussed at the end of the Legislative session. Mr. Pritsinger stated that Staff is trying to hold off until the decision is made, however, some purchases cannot be put off indefinitely. Councilmember Malone asked if it is known whether or not the local representatives are in favor the tax repeal. Councilmember Aplikowski stated that the local representatives unofficially support the tax repeal. MOTION: Councilmember Malone moved and Councilmember Rem seconded a motion to adopt Resolution #99-12, Supporting Repeal of the State Sales Tax for Local Government Purchases. The motion carried unanimously (5-0). ADMINISTRATOR COMMENTS Mr. Pritsinger stated that an on-site auction would be held on April 16, 1999, to sell the equipment acquired with the Indykiewicz property acquisition. The auctioneer, who conducts the State of Minnesota auctions, is familiar with this type of process and will collect a 10% commission. Mr. Pritsinger stated that this was determined to be the best approach considering the timing issues. Mayor Probst asked if Staff had considered selling the equipment as scrap metal. Mr. Pritsinger stated that this had been considered, however, the equipment is not scrap and the City has the best opportunity to gain more money by holding an auction. He noted that the auctioneer would be advertising the auction in local newspapers. Mr. Pritsinger stated that he had attended the State of the Region with Metropolitan Council. He indicated that the meeting was well attended. He did have the opportunity to discuss with El Tinklenberg some recent transportation issues. Mr. Tinklenberg had indicated that they were not aware of the issues with Shoreview and County Road I, and that he will look into this situation.