99-8688r
48
RESOLUTION NO. 8688
RESOLUTION SUPPORTING REPEAL OF 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 million 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 Richfield City Council
encourages its state legislators to support the repeal of the state sales tax on local
governments.
ATTEST:
~~p~
Thomas P. Ferber, City Clerk