92-110 City of Chanhassen
Carver and Hennepin Counties, Minnesota
DATE: Sel3tember 28, 1992
RESOLUTION NO: 92-110
MOTION BY: Mason SECONDED BY: Wing
A RESOLUTION CONCERNING A CONSTITUTIONAL AMENDMENT
TO CREATE A NEW PROPERTY TAXPAYERS'
TRUST FUND IN MINNESOTA
WHEREAS, the State of Minnesota enacted a 3% State sales tax in 1967 with the
promise to voters that the money would be returned to them in the form of lower property tax
relief for property tax payers; and
WHEREAS, in 1991 the Governor and State Legislature approved the addition of a
1/2% increase in the State sales tax, raising it from 6% to 6-1/2% with 2 cents dedicated to fund
the Local Government Trust Fund which was created to continue the State's commitment to local.
property tax relief; and
WHEREAS, in 1992, the Governor and State Legislature extended the 6-1/2% sales tax
to local government purchases with the promise of continued property tax relief through the
Local Government Trust Funds; and
WHEREAS, each year local governments are forced to combat continued attempts to
reduce the levels of State revenue dedicated to local property tax relief through cuts in programs
such as Local Government Aid; and
WHEREAS, it is anticipated that the State will face another budget deficit in 1993,
making cuts in local property tax relief programs tempting ways to solve the State's budget
problems; and
WHEREAS, Governor Carlson has already publicly announced that he will concentrate
on eliminating local property tax relief programs during the upcoming legislative session; and
WHEREAS, the League of Minnesota Cities and the Association of Metropolitan
Municipalities have taken positions supporting a constitutional amendment dedicating 2 cents of
each 6-1/2 cents collected from the State sales tax to the Local Government Trust Fund if such
dedication cannot be assured statutorily.
NOW, THEREFORE, BE IT RESOLVED that the City of Chanhassen calls upon
the State Legislature to support a constitutional amendment dedicating 2 cents of each 6-1/2 cents
collected by the State sales tax to a new Property Taxpayers' Trust Fund, to guarantee continued
property tax relief from the current Local Government Trust Fund.
NOW, THEREFORE BE IT FURTHER RESOLVED that the City of
Chanhassen strongly urges that the League of Minnesota Cities and the Association of
Metropolitan Municipalities make one of their 1993 priorities support for a constitutional
amendment dedicating 2 cents of each 6-1/2 cents collected by the State sales tax to a new
Property Taxpayers' Trust Fund.
NOW, THEREFORE BE IT FURTHER RESOLVED that the City requests that
the League of Minnesota Cities begin coordinating a series of state-wide "Truth in Taxation"
meetings with property taxpayers, to be held this fall, to educate the public and candidates for
State elected offices on the issues regarding the need for a constitutional amendment dedicating
2 cents of each 6-1/2 cents collected by the State sales tax a new Property Taxpayers' Trust Fund
to protect local property tax relief funds from budget cuts during the 1993 Legislative Session.
Passed and adopted by the Chanhassen City Council this 28th day of September, 1992.
ATTEST:
Don Ashworth, CRy-Clerk/Manager
Don~d~J. Chr~el, Mayor
YES
NO ABSENT
Chmiel
Wing
Mason
None Dimler
Workman