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Cnnciusions and Recammendataons <br />The De�artment of Revenue's report ca�tained the �o�lawing concIusions and recommendations. <br />a) Tk�e 1oca� sales tax plays a valuable, but supportzng role in the lar�er picture nf staie and <br />local gove�ent ��anci�g. <br />b) The local saies tax is best �zsed as a rnecl�anism �'ar �he �inancing of large, special, mul�i- <br />j�risdictional capital projects rather tl�an as a iunding replacerr�ent £ox general operating <br />expenses. <br />c) The c�rrent process for authQrizing n�w Iocal aption saies taxes is widely �aerceived to be <br />su�jcc�ive: and politica.l. <br />d) Objective criteria and a more straightfarward pxacess fax conszderatioza sh.ould be <br />develaped. <br />e) Griter'ra for approval shauld inelude a dernonstratinn that the praperty ta� ar�d state aid is <br />ir�sufficient ta adee�uately firnd the ca�ital pxaject. <br />fl A proposal shauld be considered stronger if it came from a multi jurisdietior�al cornpact. <br />g) Local approval via a referendutn shauld l�e known before su6mit�ing a prnpnsal tti the <br />Le�islature. <br />h) A�t�orization for a Ioeai sales �ax s�nuld remain wiih the Le�islaiure. <br />�inaneial Implications <br />�f Raseville were to enact a haif ceni (4.5%} lacal sales taac, it wauld receive appraximately $&.2 <br />�illion annually. This annual amount �vvould support the prineiple and int�rest cosis of a$28 <br />zz�zl�zar� bond paid off in S years. I� we taak 10 years to pay o£� the bands, our bond issue cauId <br />be as znuc� as $56 �arail�ian. <br />Far comparison purposes, $6.2 million represents approximately 19% o� aur total budget. With <br />t��s amn��, we could re�lace our entire Park Systern assets incl�uding ail �'aciiities, equiprnent, <br />and fxt�es, in 3 yea rs. We cauld alsn build an$� 8 rnilizon Commuz�ity Centear ir� 3 years. <br />With a half cent sales tax, a$100.00 purchase becomes $�00,50. On an ann�at basis, if a <br />hausehold purchased $5,000 in ta�able �oods, that sarne �urchase b�comes $5,025. Bear in <br />mind t�at many household purchases such as clothing and groceries are tax-exempt. In addi�ion, <br />most housel�old expenses such as morigage �aymenis, u�ilities, etc. are na� subjeci io �he sales <br />ta�. k'inally, i�' a sales tax were enacied the City cauld exempt lar$e-ticket puxchases such as <br />auto sales to alleviate any concerns t�at individuals mighi leave Roseville to make their <br />p�rcl�ases. <br />Attachment A � <br />