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Tuesday, February 7, 2006
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City to push for local option sales tax
Staff Writer The city of Brainerd is moving ahead with its bid for a local option sales tax.
The Brainerd City Council Monday unanimously adopted a resolution requesting the Legislature to authorize the city to collect a .5 percent local option sales tax. Along with Legislative approval, the city would need approval from residents with a referendum in the November general election.
Brainerd has been working with the city of Baxter on a joint sales tax resolution to be considered by the Legislature, with a majority of the funds from the tax to be used to help pay for the expansion of Brainerd's wastewater treatment facility, which both cities share.
The resolution adopted by Brainerd for consideration by the Legislature stated the sales tax would raise no more than $15 million and would sunset in 12 years.
Council member Mary Koep offered an amendment, to which all council members agreed, to have the resolution state that funds from the sales tax would be used to pay for all - or part - of the expansion of the wastewater treatment facility, water infrastructure improvements and, as revenues allow, trail development.
During this past year's legislative session, the city of Baxter was denied its bid for a .5 percent sales tax, even after voters in 2004 approved the tax by a vote of 2,177 to 1,559. Baxter also expected to generate $15 million during 12 years with the sales tax.
In denying Baxter's sales tax, the Legislature told Baxter officials it would prefer Brainerd and Baxter present a joint sales tax proposal.
MATT ERICKSON can be reached at matt.erickson@brainerddispatch.com or 855-5857.

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