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Posted 5/9/01

Change in sales tax could significantly affect residents

To the editor:

do you know how much of your local property tax dollars are going to help pay for the stateís budget surplus instead of local priorities like street improvements?

Our city pays $108,803 back to the state in sales taxes each year. City property owners pay sales taxes on city purchases of things like upgrading the wastewater treatment plant or road building equipment and materials. If the Legislature and the governor decide to expand the sales tax to include services like engineering, architectural and accounting consultants, then North Branch residents could pay an additional $35,405.

The sales tax on current purchases plus services would translate to each resident paying $21.29. It also means that our community priorities, like fire department services, have to compete with money weíre sending back to the stateís coffers.

In the coming weeks, Gov. Jesse Ventura and legislators will debate the stateís budget and tax issues before they come back home at the end of May. Our local legislators need to understand the impact this sales tax has on our purchases of materials or services. Itís a hidden state tax on local property taxpayers and is just a poor policy.

John Pinsonneault
Mayor of North Branch

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