1992-103
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CITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTION NO. 92-103
A RESOLUTION CONCERNING A CONSTITUTIONAL AMENDMENT
TO CREATE A NEW PROPERTY TAXPAYERS'
TRUST FUND IN MINNESOTA
WHEREAS, The State of Minnesota enacted a 3% State sales tax in 1967 with the
promise to voters that the money would be returned to them in the
form of property tax relief for property tax payers; and
WHEREAS, in 1991 the Governor and State Legislature approved the addition of
a 1/2% increase in the State sales tax, raising It from 6% to 6 1/2%
with 2 cents dedicated to fund the Local Government Trust Fund
which was created to continue the State's commitment to local
property tax relief; and
WHEREAS, in 1992, the Governor and State Legislature extended the 6 1/2%
sales tax to local government purchases with the promise of continued
property tax relief through the Local Government Trust Fund; and
WHEREAS each year, local governments are forced to combat continued attempts
to reduce the levels of State revenue dedicated to local property tax
relief through cuts in programs such as Local Government Aid; and
WHEREAS, it is anticipated that the state will face another budget deficit in 1993,
making cuts in local property tax relief programs tempting ways to
solve the state's budget problems; and
WHEREAS, Governor Carlson has already publicly announced that he will
concentrate on eliminating local property tax relief programs during
the upcoming legislative session; and
WHEREAS, the League of Minnesota Cities and the Association of Metropolitan
Municipalities have taken positions sUJ?porting a constitutional
amendment dedicating 2 cents of each 6 1/2 cents collected from the
State sales tax to the Local Government Trust Fund if such dedication
cannot be assured statutorily;
'.
NOW, THEREFORE, BE IT RESOLVED that the City of Hopkins calls upon the
State Legislature to support a constitutional amendment dedicating 2 cents of each
6 1/2 cents collected by the State sales tax to a new Property Taxpayers'Trust Fund,
to guarantee continued property tax relief from the current Local Government Trust
Fund; and
BE IT FURTHER RESOLVED, that the City of Hopkins strongly urges that the
League of Minnesota Cities and the Association of Metropolitan Municipalities
make one of their 1992 priorities support for a constitutional amendment dedicating
2 cents of each 6 1/2 cents collected by the State sales tax to a new Property
Taxpayers' Trust Fund; and
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BE IT FURTHER RESOLVED, that the City requests that the League of
Minnesota Cities begin coordinating a series of state-wide "Truth in Taxation"
meetings with property taxpayers to be held this fall, to educate the public and
candidates for State elected offices on the issues regarding the need for a
constitutional amendment dedicating 2 cents of each 6 172 cents collected by the
State sales tax a new Property Taxpayers' Trust Fund to protect local property tax
relief funds from budget cuts during the 1993 Legislative Session.
Passed and adopted by the City Council of the City of Hopkins this 17th day of
November 1992.
ATTEST:
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