Proponents of a local option sales came away from a hearing at the state senate feeling a little more positive about their chances.

Thursday, March 07, 2002

Proponents of a local option sales came away from a hearing at the state senate feeling a little more positive about their chances. But they also are questioning a system which gives the legislature the right to decide whether a city can take an issue like this before voters.

On the possibilities of bringing a proposed sales tax to city voters, the odds are even right now, they said.

&uot;I would say we have a 50-50 chance of success at this point,&uot; said Bob Haukoos, Albert Lea mayor, one member of the delegation from the city that appeared before senators Wednesday afternoon.

The group from Albert Lea testified at a hearing of the senate’s Income and Sale Tax Budget Division.

According to those who attended the hearing, one important factor will be whether the senate passes an omnibus tax bill or not.

&uot;The senate gave us a pretty good reception, but we don’t know if there will be an omnibus tax bill. Without an omnibus bill, this doesn’t have a chance,&uot; said Tony Trow, a member of Destination: Albert Lea who testified about the sales tax proposal.

Senators brought up more questions about Destination: Albert Lea’s assertion that a local option sales tax would be more progressive than an increase in property taxes.

City officials already pointed out at the House sub-committee hearing last week that property tax levies are already at their maximum. Trow has run the numbers based on current property values and discovered that raising the money needed for the projects they have in mind would take at least 800 years, if the only source is property taxes.

&uot;A sales tax is the only credible option,&uot; said Trow.

Among the things that give Trow and Haukoos hope is the fact that at least 14 other communities are also asking for permission to bring local option sales taxes to voters. Two of them are in districts served by Republican leaders of both the house and the senate, said Haukoos.

Trow feels that it will be an all-or-nothing vote on the sales tax requests, but he’s also trying to move away from a situation in which the legislature has the right to decide whether a community like Albert Lea can hold an election on local issues like a city sales tax. He and other members of Destination: Albert Lea brought resolutions asking the legislature to surrender its control of local sales tax issues to both the local Republican and DFL caucuses on Tuesday night. Both resolutions passed.

&uot;All we’re asking is to give us the right to decided about holding special elections like this. We need to get away from asking for special permission to vote on important local revenue issues. They need to get out of the way,&uot; said Trow.

Haukoos agrees, and hopes that the issue will continue to be discussed in St. Paul in the future.

For now, the next step is for the request for a local option sales tax to go before the senate taxes committee later, and then, possibly, to the full Senate for a vote.

The House version of the bill is also waiting for inclusion in an omnibus tax bill, if legislators draft one.