99-27 CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
DATE: ADril 12, 1999
RESOLUTION NO: 99-27
MOTION BY:
SECONDED BY:
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 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 the Chanhassen City Council encourages its
state legislators to support the repeal of the sales tax on local governments.
Passed and adopted by the Chanhassen City Council this 12th day of April, 1999.
ATTEST:
Todd Gerhardt, Acting City Manager Nancy K. Mancino, Mayor
YES
Mancino
Jansen
Labatt
NO
None
ABSENT
Engel
Senn