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K) OPPOSE RES�NTIAL TAX-BASE SHARING <br />The MLC strongly opp ses additional fiscal disparities policies mandated by the Legislature, <br />specifically tax-base s aring on higher-valued homes. Residential tax-base sharing is an <br />ineffective tax policy for the following reasons: <br />• Residenti II tax-base sharing would increase barriers to affordable <br />housing b significantly increasing residential property taxes in many <br />M LC citie . <br />• Residenti I tax-base sharing does not consider a household's ability <br />to pay. r example, low income residents in one city would have <br />property t x increases, while wealthy homeowners in another city <br />would ex rience decreases in their taxes. <br />• Residenti I tax-base sharing would encourage leapfrogging outside <br />the seven county area. <br />L) REPEAL THE �ALES TAX ON LOCAL GOVERNMENT PURCHASES <br />The MLC strongly su ports a legislative repeal of the sales tax on local government <br />purchases. The Legisl ture should permanently eliminate this unwise tax policy of requiring <br />political subdivisions to raise taxes to pay another. unit of government. If the Legislature fails <br />to repeal this unwise x policy, it should, in the alternative, require the truth in taxation <br />statement to indicate it effect. <br />M) SUPPORT EX�LUDING LOCAL GOVERNMENT PURCHASES FROM THE <br />SALES TAX O SERVICES <br />The MLC is neutral on e Governor's initiative to tax professional services. However, should <br />this tax be imposed, MLC would oppose imposing this tax on professional services <br />provided to local units of government. Few argue that the sales tax on local government <br />purchases is good ta� �policy. It would be unadvisable to extend an already unwise tax to <br />additional local govern ent purchases. Local units of government are prudent to contract for <br />services such as legal� �auditing, engineering and computer programming because in many <br />instances, in-house pr fessional services are less cost-effective. To impose a sales tax on <br />contract services woul discourage fiscally responsible decisions by cities, and would simply <br />shift the burden from th state to the property taxpayer. <br />N) SUPPORT ST BLE, LONG-TERM FUNDING SOURCE FOR REGIONAL <br />TRANSIT A <br />The property tax levy for metro area transit is approaching $100 million annually and <br />provides nearly 40% of the metro area transit revenues. This reliance on the property tax for <br />