Council on board with sales tax exemptionPublished 10:56am Tuesday, March 5, 2013
The Fergus Falls City Council approved a resolution to approve the legislative sales tax exemption resolution at its meeting Monday. The resolution really brought to light the fact that cities pay sales tax, said City Administrator Mark Sievert.
The state House Tax Committee last month considered bills that would exempt the purchases of cities and counties from the state sales tax. The League of Minnesota Cities is seeking support from cities with the resolution.
“We’ve been paying the sales tax since 1992,” he said.
The change would eliminate cities paying sales tax, Sievert said. The city of Fergus Falls currently pays an estimated $165,000 annually in state sales tax.
“It really doesn’t make sense for one governmental jurisdiction to pay sales tax to another,” he said.
Sievert said he hopes legislators “get flooded with these resolutions.”