HomeMy WebLinkAbout99-012
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CITY OF ARDEN HILLS
COUNTY OF RAMSEY
STATE OF MINNESOTA
RESOLUTION NO. 99-12
A RESOLUTION SUPPORTING REPEAL OF THE STATE SALES TAX
FOR LOCAL GOVERNMENT PURCHASES
WHEREAS, the Legislature imposed the sales tax on local governments in 1992 when facing a
significant state budget deficit; and
WHEREAS, the state government has collected hundreds of millions of dollars in sales tax since
1992 on local government purchases of items such as road maintenance equipment, wastewater
treatment facilities, and building materials; and
WHEREAS, the sales tax on local government purchases is passed on to residents in the form of
higher property taxes and fees; and
WHEREAS, the state's financial picture has improved dramatically and the need for the sales
tax no longer exists; and
WHEREAS, Minnesota is one of only seven (7) states which impose sales tax on local
government purchases; and
WHEREAS, imposing the sales tax on local government purchases is an inefficient way to raise
state revenues, especially where sales tax is paid for bonding projects with accompanying interest
costs;
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Arden Hills,
Minnesota that it encourages its state legislators to support the repeal of the sales tax on local
governments.
ATTE~
BRTAN FRITSTNG~MTNISTRA TOR
PASSED AND ADOPTED BY THE CITY COUNCIL OF
THIS 29'. DAY OF MARCH, 1999.
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CITY OF ARDEN HILLS
4364 WEST ROUND LAKE ROAD
ARDEN HILLS, MN 55112-5794
March 30,1999
The Honorable Linda Runbeck
Minnesota State Senate
107 State Office Building
St. Paul, MN 55101
Dear Senator Runbeck:
The City of Arden Hills encourages you to support S.F. 330 (Stevens) and other bills that
would re-exempt local government purchases from the sales tax.
The sales tax on local government purchases was extended by the legislature in 1992 at a
time when the state was experiencing a severe budget shortfall. With recent budget
forecasts that indicate a substantial state budget surplus in the foreseeable future, the state
can afford to eliminate the sales tax on local purchases.
Exempting local government purchases would save cities, counties and townships an
estimated $80 million per year that ultimately results in higher property taxes and user
fees. For the City of Arden Hills, this would save Arden Hills taxpayers several thousand
dollars each year.
We encourage state legislators to support the repeal of the sales tax on local governments.
Please feel free to contact me if you have any questions.
Sincerely,
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Brian Fritsinger
City Administrator
BF Isis
PHONE: (612) 633-5676 . FAX (612) 633-7839
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CITY OF ARDEN HILLS
4364 WEST ROUND LAKE ROAD
ARDEN HILLS, MN 55112-5794
March 30, 1999
The Honorable Phil Krinkie
Minnesota House of Representatives
303 State Office Building
St. Paul, MN 55101
Dear Representative Krinkie:
The City of Arden Hills encourages you to support S.F. 330 (Stevens) and other bills that
would re-exempt local government purchases from the sales tax.
The sales tax on local government purchases was extended by the legislature in 1992 at a
time when tbe state was experiencing a severe budget shortfall. With recent budget
forecasts that indicate a substantial state budget surplus in the foreseeable future, the state
can afford to eliminate the sales tax on local purchases.
Exempting local government purchases would save cities, counties and townships an
estimated $80 million per year that ultimately results in higher property taxes and user
fees. For the City of Arden Hills, this would save Arden Hills taxpayers several thousand
dollars each year.
We encourage state legislators to support the repeal of the sales tax on local governments.
Please feel free to contact me if you have any questions.
Sincerely,
ft~
Brian Fritsinger
City Administrator
BF/sls
PHONE: 1612) 633-5676 . FAX 1612) 633-7839