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City Council Resolution 1999-17RESOLUTION 99- 17 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 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 Monticello City Council encourages its state legislators to support the repeal of the sales tax on local governments. Adopted this 12t' day of April, 1999. May ATTEST: City Administratoll