1966-3603r~~
RESOLUTION No. 3603 „~
RESOLUTION RELATING TO PROPOSED GROSS EARNINGS TAX IN CITY
OF MINNEAPOLT.S
1r~HEREAS, this council is 3.nfoxmed that some consideration is presently being
given to the imposition of~a tax by Minneapolis upon the earnings of persons
working within Minneapolis, regardless of where such persons reside, and
V~IHEREAS, many persons earning their liv3.ngs within Minneapolis reside in
Richfield and elsewhere in the metropol~.tan areas and must support the 7.oca1
goverr~merrts of the communities in which they reside, and
WHEREAS', persons living in Minneapolis but working outside the City presumes
ably would not be required to support the local governments of the communities in
which they workD and '
WHEREAS, any such tax imposed unilaterally by Minneapolis would-therefore
discriminate very unfairly against persons who live outside Minneapolis' and would
render it far more difficult far other communities in the area of Minneapolis to
meet their own financial needs and
TrJH_FRFAS, any such tax would amount to compelling the subsidizing- of the City
of Minneapolis by residents of other areas, without representation, and
.WHEREAS, when the City of Bloomington was giving consideration to imposing
an admissions tax, officials of Minneapolis and other metropolitan commun3.ties pointed
to the need for a metropolitan approach to the problems of taxation and finance,
prevailing upon Bloomington to defer action pe nding a rr~etropolitan tax study9 and
WHEREAS, unilateral actian by Minneapolis, imposing a new form of tax hav3.ng a
significant impact upon persons and communities outside Minneapolis, would be far
more disruptive than such action on the part of any smaller community and
~hIF.REAS, while ad valorem tax collections-for Minneapolis resulting from the
so®called~"Donaldson decision" may be reduced, such reduction would appear to be
temporary, especially if tax 1:evy limits of Minneapolis are made to correspond with
those of neighboring suburban communities, and
WHEREAS, a study by the Giti~ens League of Minneapolis and Hennepin County has
indicated that the effective tax rate on residences in Minneapolis is substantially
lower than in most of the suburban communities with which it was compared' and
WHEI~EA5, the tax valuation. per student and per capita is significantly higher
in Minneapolis than in most neighboring suburban communities,, and
WHEREAS, the more favorable financial position of Minneapolis as compared
with its suburban neighbors, is reflected in its superior credit ratings and
WHEREAS, when Minneapolis appears to occupy a more favorable financial position
than its neighbors and when it does not appear to have as high a level of property.
taxation as its neighbors, it would seem even more ut~nreasonable and unfair to re-
quire suburban residents to subsidize Minneapolis, and
(continued)
2 ..
Tn~HEREAS, while th.: revenue problems of Minneapolis mar be reale substantial
and difficult of solutions such problems should not be~solved withaut regard for
the equally difficult problems of neighboring commun3.ties~
1VO~d THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield
as follows ~:
This council herewith declares itself to be strongly opposed to the unilateral
imposition of a gross earnings tax by any community in the Minneapolis-St.Paul
metropolitan area, and urges the officials of all.local. governments in this
metropolitan area to refrain from any such unilateral action.
Passed by the City Council of the City of Richfield this 11th day of April
1~66a
W-
S anley W. Olson Mayor
ATTEST
0
Edward o o ne Cler