Monday, June 8, 2015

In time of plenty for state, Minnesota local governments fume over delayed sales tax break

Local governments are fuming over an impending Minnesota law change that will cost them $20 million in sales taxes that won't go away as planned, an unwelcome prospect given the hundreds of millions of dollars lawmakers set aside to enable possible tax cuts next year.

The Legislature is set to delay by a year a previously approved sales tax exemption for cities, counties and other government entities that team up to provide services through "joint powers" arrangements. Local officials say the change, which is part of an education bill that will come up in a special session, came out of nowhere in May and runs contrary to the state's demands they deliver services more efficiently.

Read more in the Minneapolis Star Tribune.