Editorial: Legislators must simplify sales tax issue
Published 12:00 am Monday, March 28, 2005
The Minnesota Legislature will soon likely have 16 different proposals from 21 cities all seeking approval of the same basic thing: using a half-cent, local-option sales tax.
Among those are Clearwater, St. Augusta, St. Cloud, St. Joseph, Sartell, Sauk Rapids and Waite Park. Although not official, it appeared these seven cities would account for four of the 16 proposals. Clearwater has its own plan to raise $3 million for a community center, while three other proposals cover the remaining communities.
If ever there was a need for legislators to simplify a process, this is it.
Yet that coupled with political gamesmanship are driving forces in the flood of proposals. Look no further than the St. Cloud metro area. Its neighboring communities are operating under a joint powers agreement regarding the sales tax, yet their respective legislators have to overwhelm the Capitol with similar, if not entirely redundant, legislation.
Why? Part of it is due to campaign promises, but the area also has seen firsthand what meddling legislators can do &045; even when local voters have approved sales-tax legislation. Five years ago, this area
OK’d the half-cent tax to raise up to $40 million during 10 years for parks, roads, airport and library improvements. But the Legislature delayed its approval one year. Finally, in 2002, it authorized the tax, but only for three years, and it excluded library improvements.
Rather than deal with 16 different requests, the Legislature should draft basic policies that:
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Require this taxing mechanism be allowed to pay for projects that are only regional in nature.
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Require the money be used for capital projects &045; roads, bridges, public buildings, etc.
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Limit to two or three the number of projects the tax can pay for at one time.
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Let the city &045; or cities &045; set the tax rate, but keep it in place only until those are paid off.
Give local residents, not the Legislature, the final say in adopting &045; or extending &045; the tax based on new projects put forward by community leaders.
This idea is not new. In fact, House File 1284 already covers much of it, plus another similar proposal is expected soon. Of course, the bad news is those bring to 18 the number of pieces of legislation on local-option sales tax. But if they yield a single, consistent answer for the entire state, it’s worth it.
St. Cloud Times