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REQUEST FOR COUNCIL ACTION <br /> Date: April 15, 2013 <br /> Item No.: 7.g <br />Department Approval City Manager Approval <br />Item Description: Consider Adopting a Resolution Supporting Sales Tax Exemption on City <br />Purchases <br />B <br />ACKGROUND <br />1 <br /> Cities, townships, counties and school districts are partners with the state in providing services <br />2 <br />to residents and businesses across the state of Minnesota. Local governments had been exempt <br />3 <br />from paying sales taxes on purchases until 1992 when the state legislature changed the law <br />4 <br />extending the state sales tax as a way to address a budget deficit. This change has put a financial <br />5 <br />burden on local governments. <br />6 <br />Since then, other changes in budgeting and taxing have put pressure on local governments. The <br />7 <br />Legislature provided relief for townships in 2011, exempting them from the sales tax. But cities <br />8 <br />continue to pay sales taxes. In this legislative session, several legislators have introduced <br />9 <br />legislation to re-exempt cities and counties from the state sales taxes. <br />10 <br />PO <br />OLICYBJECTIVE <br />11 <br />This change would relieve the city from a substantial financial burden. <br />12 <br />FI <br />INANCIALMPACTS <br />13 <br />The state sales tax currently paid by the City of Roseville is an estimated $290,000. <br />14 <br />SR <br />TAFF ECOMMENDATION <br />15 <br />Consider adopting the attached resolution supporting sales tax exemption on city purchases. <br />16 <br />RCA <br />EQUESTEDOUNCILCTION <br />17 <br />Consider adopting the attached resolution supporting sales tax exemption on city purchases. <br />18 <br />19 <br />Prepared by: William J. Malinen, City Manager <br />Attachments: A: LMC briefing on sales tax exemption <br />B:Draft Resolution <br />C:Proposed Legislation Summary And LMNC Article <br />Page 1 of 1 <br /> <br />