Laserfiche WebLink
MEMO TO: Mayor and City Council .Yks;� I' <br />FROM: Don Brager, Finance Director �` <br />DATE: February 25, 1987 <br />SUBJECT: SURVEY ON IMPACT OF SALES TAX PROPOSAL ON THE <br />CITY OF MOUNDS VIEW <br />I recently completed a survey of the impact of the governor's <br />sales tax proposal on the City of Mounds View for the League of <br />Minnesota Cities. For your information, the questions asked and <br />my responses are listed below: <br />SALES TAX SURVEY <br />1. If the sales tax (and Motor Vehicle Excise Tax) had been <br />imposed on City purchases in 1986, how much would this <br />have increased your City's budget costs (in dollar <br />terms)? <br />$ 37,110.00 (approximately) <br />2. What percentage of your City's total expenditures for <br />1986 did the amount in question 1 represent? <br />1 B (approximately) <br />( 3. If the sales tax had been imposed on professional <br />services --such as the services of attorneys, engineers, <br />architects, accountants, auditors, financial consul- <br />tants-- flow much would this have cost your City in <br />1986? <br />$ 12,429.00 (approximately) <br />Goods and Services <br />Professional <br />Combined <br />37,110 = .645 <br />57,507 <br />12,429 = .216 <br />49,539 = .861 <br />57,507 <br />The majority of the burden of a sales tax, if imposed, would fall <br />upon the general fund. Since the general fund is primarily <br />property tax supported, the imposition of the sales tax on goods <br />purchased by the City would have a direct affect upon the <br />property tax levy. If the sales tax had been imposed on City <br />purchases in 1986, it would have amounted to 0.645 mills. If the <br />sales tax had imposed upon professional services, the property <br />tax levy would have been 0.216 mills. If the property tax had <br />been imposed upon both goods and services and professional <br />services, the affect on the property tax levy would have been <br />0.861 mills. <br />DB/bac <br />