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 12" day of April, 1999.
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City Administratoil