99-017
.
CITY OF SHOREWOOD
RESOLUTION NO. 99- 017
A 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 millions of dollars in
ales 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 imposed 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 Shorewood City Council
encourages its state legislators to support the repeal of the sales on local governments.
PASSED AND ADOPTED BY THE
OF SHOREWOOD this 22nd day of March, 19 .
.