06-10-1991 Council Packet - Laserfiche WebLink

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5- ' r-.'' kr.t -¥•* r i-'?r-> SALES TAX RESOLUTION W»*' addi t io:i 1991, an *^'3, the Minnesota State Legislature adopted an cent increase co the sales tax effective July I, WHC AS, the Legislature did this to assist themselves in solving a budget shortfall without scaling back expenditures of the State government, and WHEREAS, in order for cities and counties to forestall significant cutbacks, the counties were required by July 1 to decide through adoption of a resolution whether they would authorize a continuance of that additional 1/2 cent beyond January 1, 1992, and WHEREAS, the law provides that cities representing a majority of the population in the county could adopt resolutions in opposition to the County Board action on the issue, and WHEREAS, failure to continue the sales tax will result in only a 1/2 cent reduction ’n sales tax with the other 1 1/2 cents that are dedicated under the law for counties and cities being distributed to other counties who do continue the sales tax increase, and WHERf-, the tiilure to adopt will result in substantial increases in the county and city tax capacity rates to make up the Lost revenue, and WHEREAS, the Hennepin County Board requested resolutions of intent from the city council's in Hennepin County on which to base their decision, and WHEREAS, the Orono City Council desires to protest to the corapulsary nature of the "optional" sales tax and the sham of local accounts’ ■Iity that it implies. NOW, THEREFORE BE TT RESOLVED, that the Orono City Council protests the law by goii. on record in onrosition to the sales tax increase, fully tealiz og that failui. the 1/2 cent increase not to be sustained beyond January 1, will result in substantial property tax increases in an already onero -s property tax system in hopes of achieving real reform rath.-'r than compulsory shifting of the blame by the Legislature. - h