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06-26-2013 Council Agenda
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06-26-2013 Council Agenda
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70 <br />Appendix III provides a summary of Minnesota proce- <br />dures to claim this exemption. <br />One caveat is the potential change in state law allowing <br />exempt status for these types of purchases. In Minnesota, <br />the state legislature has enacted a sales tax on purchases <br />by cities, counties, and townships. This would negate the <br />potential for this benefit if it becomes law.115 Another <br />consideration is the potential risk associated with separat- <br />ing materials and installation from one contract. Profes- <br />sional advice should be obtained before proceeding. <br />8. Evaluation of bids occurs which ensures accuracy and <br />conformance with the project budget on a section by section <br />basis. Should a bid appear dramatically low, the opportunity <br />to have the contractor withdraw that bid is available, thus <br />preventing someone from being on a job who has lost money <br />before work has even started. Furthermore, should a bid <br />appear out of line with the expected budget, the opportunity <br />exists to go back and further evaluate that section. It is <br />very probable that bids for this section could be rejected <br />and that component rebid after making some modifications to <br />design documents.116 <br />115 <br />Increases: <br />Face Sales <br />1 -A. <br />116 <br />Bill Salisbury, "Lawmakers Reject Some Tax <br />Gas, Auto Repair Levies Fail; Cities, Counties <br />Tax," St. Paul Pioneer Press, 14 April 1992, <br />C. Edwin Haltenhoff, "Multiple Bidding and <br />19 <br />
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