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CITY OF LAKE ELMO <br />WASHINGTON COUNTY, MINNESOTA <br />RESOLUTION NO. 99 -21 <br />RESOLUTION SUPPORTING REPEAL ®F THE STATE SALES <br />TAX FOR LOCAL GOVERNMENT PURCHASES <br />WHEREAS, the Legislature imposed the sales tax on local governments in 1992 <br />when facing a significant state budget deficit; and <br />WHEREAS, the state government has collected hundreds of millions of dollars in <br />sales tax since 1992 on local government purchases of items such as road maintenance <br />equipment, wastewater treatment facilities, and building materials; and <br />WHEREAS, the sales tax on local government purchases is passed on to <br />residents in the form of higher property taxes and fees; and <br />WHEREAS, the state's financial picture has improved dramatically and the need <br />for the sales tax no longer exists; and <br />WHEREAS, Minnesota is one of only seven states which impose sales tax on <br />local government purchases; and <br />WHEREAS, imposing the sales tax on local government purchases is an <br />inefficient way to raise state revenues, especially where sales tax is paid for bonding <br />projects with accompanying interest costs; <br />NOW, THEREFORE, BE IT RESOLVED, that the Lake Elmo City Council <br />encourages its state legislators to support the repeal of the sales tax on local governments. <br />Zf <br />Lee Hunt, Mayor <br />ATTEST: <br />Mary K finer, Administrator <br />