Laserfiche WebLink
Municipal Revenue & Taxation <br />host communities. Metro Cities would prefer that cities and townships be allowed to <br />collect a host fee that may be adjusted when state decisions impact those fees. <br />1-N Sales Tax on Local Government Purchases <br />Metro Cities supports the reinstatement of the sales tax exemption for purchases of <br />goods and services made by cities. <br />To ensure that citizens receive the full benefit of this exemption, the law should treat <br />purchases of all local government units the same, including purchases made by special <br />taxing districts, joint powers entities, or any other agency or instrumentality of local <br />government. <br />In 2015, the Legislature delayed the effective date of the exemption for purchases by <br />joint powers entities, housing and economic development authorities and other special <br />districts until January, 2017. Metro Cities supports a law change to immediately <br />effectuate the exemption for these entities. Metro Cities opposes further delays in the <br />application of this law. <br />Metro Cities supports granting an extension of the motor vehicle sales tax <br />exemption to all municipal vehicles that are used for general city functions and are <br />provided by governmental entities. Currently, only certain vehicles, including road <br />maintenance vehicles purchased by townships, and municipal fire trucks and police <br />vehicles not registered for use on public roads, are exempt from the MVST. <br />Metro Cities supports simplifying the process around the exemption for <br />construction materials, which is currently complex and cost ineffective, or <br />converting the process to a refund program. <br />1-0 City Revenue Stability and Fund Balance <br />Metro Cities opposes state attempts to control or restrict city fund balances. These <br />funds are necessary to maintain fiscal viability, meet unexpected or emergency <br />resource needs, purchase capital goods and infrastructure, provide adequate cash <br />flow and maintain high level bond ratings. <br />1-P Public Employees' Retirement Association (PERA) <br />Metro Cities supports employees and cities sharing equally in the cost of necessary <br />contribution increases and a 60% employer/40% employee split for the PERA <br />Police and Fire Plan. Metro Cities also supports state assistance to local <br />governments to cover any additional contribution burdens placed on cities over and <br />above contribution increases required by employees. Cities should receive sufficient <br />notice of these increases so that they may take them into account for budgeting <br />purposes. <br />6 2016 Legislative Policies <br />