The Taconite Capital of the World

City of Mountain Iron, Minnesota



Resolution 05-99 Sales Tax Repeal

RESOLUTION NUMBER 05-99

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 onto 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 Mountain Iron City Council encourages its state legislators to support the repeal of the sales tax on local governments.

Duly adopted this 15th day of March, 1999.

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