Legislators tell public that local-option sales tax is facing slim odds at Capitol

Published 12:00 am Monday, April 22, 2002

The Chambers of Commerce in Freeborn and Mower counties invited area legislators to discuss the status of the budget balancing talks and the prospects for a local half-percent sales tax at a breakfast meeting on Saturday.

Efforts by the House and Senate to agree on how to overcome a $439 million budget deficit in fiscal year 2002-2003 have not yielded any result.

Rep. Dan Dorman, R-Albert Lea, said, “Cutting the budget is never as easy as increasing it.” He emphasized that “gubernatorial politics” makes the process harder.

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Dorman questioned the Senate’s tax increase approach that includes a 60-cent per pack increase of the cigarette tax, pointing out the tax increase may have a negative impact on the economy. Instead, he suggested waiting for the recovery of the state economy.

Rep. Rob Leighton, DFL-Austin, said using up the state’s budget reserves would be a bad idea to confront a long-term budget problem. He conceded that some tax increases would be inevitable, and criticized the House Republican leadership for avoiding responsibility.

Sen. Grace Schwab, R-Albert Lea, said the Senate budget balancing bill is composed of every possible way to fix the deficit. It also includes provisions that affect the area such as a local-option sales tax and remedial measures for Farmland.

“My concern is that those provisions could be forgotten in the talk between the conference committee,” Schwab said.

As for the chance for a local one-half percent sales tax to be realized, the legislators were very pessimistic.

Dorman said the provision is still alive but the chance is very slim. Leighton pointed out both Republicans and Democrats in the House share a philosophy that opposes the local-option sales tax.

Albert Lea has asked the state for permission to levy a half-percent sales tax within city limits. The proceeds would pay for downtown and lake improvement projects. If approved by the legislature, the tax would be subject to a local referendum.