Getting the approval of Albert Lea voters may not be the biggest obstacle to supporters of a local option sales tax.

Wednesday, October 31, 2001

Getting the approval of Albert Lea voters may not be the biggest obstacle to supporters of a local option sales tax.

According to Rep. Dan Dorman, (R-Albert Lea), the political atmosphere in St. Paul is not conducive to passing a sales tax through the legislature.

&uot;Philosophically, I don’t have a problem with a local sales tax. I agree that it should go to the voters, but there are some forces at the Capitol that could stand in the way,&uot; Dorman told members of Destination: Albert Lea Tuesday.

A movement to streamline the sales tax system in Minnesota to ensure fair and accurate taxation of Internet commerce may jeopardize any new local option sales taxes, Dorman said. Not only is the streamline movement nationwide, but two of its strongest supporters are the chairmen Minnesota’s two tax committees. Sen. Ron Abrams and Rep. Larry Pogemiller, chairmen of the Senate and House Tax Committees respectively, view local option sales taxes as too regressive and too popular in Minnesota.

&uot;I think they feel some pressure to not make the situation any worse. If they want to get the sales tax more uniform, they probably won’t be inclined to approve this type of tax,&uot; Dorman said.

But there are other ways to fund the downtown improvement and lake cleanup projects proposed by DAL, he said. Along with the sales tax, Dorman recommended various bonding options and lake improvement districts as funding mechanisms.

&uot;My advice is, don’t tie these projects exclusively to a sales tax. I’m not saying there’s no chance to pass it, I’m just saying you have to be willing to look at some other options as a backup plan,&uot; he said.

DAL member Karen Trow said the sales tax, despite any obstacles in St. Paul, remains the most viable option for the group. She fears any property-based tax would end up in court.

&uot;I think people in Albert Lea are willing to consider a sales tax. But lake districts and watershed districts – those could get delayed in court for years,&uot; she said. &uot;We might never get anything done.&uot;

Dorman said he will continue to gauge the possible opposition in St. Paul, but said the tax proposal will have no chance at 1 percent. He suggested trimming the proposal to a half percent instead.

&uot;No one will even look at 1 percent,&uot; he said. &uot;The other folks in the legislature would laugh at me.&uot;

Despite the obstacles, Dorman told the group that the projects have significance and timeliness.

&uot;I don’t want this group to lose momentum,&uot; he said. &uot;I think Albert Lea is ready to make some changes, I really do. Just be willing to look at all the options out there.&uot;

The Destination: Albert Lea sales tax proposal will be considered in a public hearing at the next city council meeting Nov. 13.