HomeMy WebLinkAboutResolution 99-21CITY OF LAKE ELMO
WASHINGTON COUNTY, MINNESOTA
RESOLUTION NO. 99 -21
RESOLUTION SUPPORTING REPEAL ®F 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 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, that the Lake Elmo City Council
encourages its state legislators to support the repeal of the sales tax on local governments.
Zf
Lee Hunt, Mayor
ATTEST:
Mary K finer, Administrator
Date
The Honorable (Fname) (Lname)
Minnesota House of Representatives
* ** State Office Building
St. Paul, MN 55155
Dear Representative /Senator (Lname):
The City of encourages you to support H.F. 52 (Haas) /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 $000 million
per year that ultimately results in higher property taxes and user fees. [Ifyour city has the actual or estimate
of the sales tax paid last year, you should include that figure in the letter].
We encourage state legislators to support the repeal of the sales tax on local governments.
Sincerely,