- Minnesota Cities & The League
- Governing & Managing
- Risk Management
- Legislative Action Center
- Training & Conferences
The League supports provisions in the bill that reform and appropriate $80 million for LGA, and exempt cities from sales tax.
(Published Apr 29, 2013)
In testimony and communication with legislators, the League has continued to advocate support for both of the provisions below (see policies FF-1, page 86; FF-5, page 88; and FF-9, page 91 in the 2013 City Policies [pdf]).
Local government aid (LGA) reform and appropriation. The Senate bill includes $80 million in additional funding for the LGA program and the revised formula bill originally introduced by Sen. Roger Reinert (DFL- Duluth). The revised formula was agreed upon by city groups (the League, the Association of Minnesota Counties, the Coalition of Greater MN Cities, and the Municipal Legislative Commission). The bill replaces the current LGA formula with a new formula that makes adjustments to an individual’s city aid based on its “aid gap” or the difference between its current aid and its unmet need as measured by the formula.
It is important to know that the Senate version of the bill does not include a future-year appropriation inflation/growth factor, whereas the House bill (HF 677) includes a growth factor, which will maintain modest growth in the LGA appropriation into the future. (Read more about the House omnibus tax bill.)
Sales tax exemption for cities. The bill includes a sales tax exemption for cities and counties as originally proposed in separate bills by Sen. Ann Rest (DFL-New Hope), Sen. Dave Senjem (R-Rochester), and Sen. Chuck Wiger (DFL-Maplewood). The sales tax exemption for cities is estimated to reduce city costs by $77.5 million in the first full year of implementation. Read more about this provision, and a model resolution for your city to consider passing.
2. Take Action.
City officials are encouraged to contact their senator(s) as soon as possible to support the passage of SF 552, particularly to share support for the two provisions regarding LGA and sales tax exemption for cities. City officials are invited to share any contact with legislators with the League’s IGR staff (see right).
City officials are also encouraged to contact Gov. Dayton directly to share support for both of these provisions in the bill. Cities are encouraged to pass resolutions or send a mayor’s letter of support for the sales tax exemption. If your city has passed a resolution, or has a mayor’s letter of support, please send a copy to the governor (address linked below), your legislators, and League staff (email@example.com).
3. Stay Involved.
Stay tuned to League publications for more information:
* By posting you are agreeing to the LMC Comment Policy.
Contact Heather Cederholm
(651) 281-1256 or (800) 925-1122
Contact Laura Ziegler
(651) 281-1267 or (800) 925-1122
1. Type your comment in the “Leave a message…” box.
2. Identify yourself (required) in one of these ways:
—Click on a social media icon to sign in through your account, OR
—Register with Disqus by entering your full name in the first field and email address in the second field.
3. Click Next.
4. Click “Post as (your name).”