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STAFF REPORT <br /> PAGE TWO <br /> JUNE 10, 1991 <br /> Consequences of Not Imposing the Local Sales Tax <br /> 1. If a county decides not to impose the local sales tax for any year and the <br /> majority of the cities in the county do not override the county's <br /> decision, the citywill not <br /> receive payment of state aids in the following year. <br /> 2. In Mounds View, that could result in a loss of approximately <br /> $900,000. <br /> 3. The Tax Bill does provide that a county or city can levy for the loss of state <br /> aids if they do not approve the tax. <br /> 4. In Mounds View, such an additional levy could raise taxes to substantial levels <br /> as force major service reductions. <br /> Consequences of Imposing the Bill <br /> 1. If the tax is imposed, the City of Mounds View will gain its share <br /> of a 2 cent sales tax via continued local government aids - <br /> rejection only saves county tax payers the 1/2 cent of the state <br /> sales tax. <br /> 2. Increases in property taxes will be diminished due to the shift <br /> from property to sales tax. <br /> Ramsey County has requested that cities respond with their support/rejection of the sales <br /> tax option by June 20th. The County Board plas to act on the tax on June 25th. <br />