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RESOLUTION SUPPORTING REPEAL OF THE STATE SALES <br />TAX FOR LOCAL GOVERNMENT PURCHASES <br />WHEREAS, the Legislature imposed the sales tax on local governments in 1992 <br />when facing a significant state budget deficit; and <br />WHEREAS, the state government has collected hundreds of millions of dollars in <br />sales tax since 1992 on local government purchases of items such as road maintenance equipment, <br />wastewater treatment facilities, and building materials; and <br />WEXREAS, the sales tax on local government purchases is passed on to residents <br />in the form of higher property taxes and fees; and <br />WHEREAS, the state's financial picture has improved dramatically and the need for <br />the sales tax no longer exists; and <br />WEKREAS, Minnesota is one of only seven states which impose sales tax on local <br />government purchases; and <br />WHEREAS, imposing the sales tax on local government purchases is an inefficient <br />way to raise state revenues, especially where sales tax is paid for bonding projects with <br />accompanying interest costs; <br />NOW, THEREFORE, BE IT RESOLVED that the Orono City Council encourages <br />its state legislators to support the repeal of the sales tax on local governments. <br />Adopted by the City Council of the City of Orono, Minnesota at a regular meeting <br />held March 22, 1999. <br />Gabriel Jabbour, Mayor <br />ATTEST: <br />Carole A. Haseman, Deputy City Clerk <br />'I <br />i