Tribune staff editorial

When it comes to the proposed Albert Lea local-option sales tax, the ball will be in the Minnesota legislature’s court this week, as the first and maybe the only committee hearing on the subject is scheduled.

Tuesday, February 26, 2002

When it comes to the proposed Albert Lea local-option sales tax, the ball will be in the Minnesota legislature’s court this week, as the first and maybe the only committee hearing on the subject is scheduled. How the bill is received will be an indication of what lies ahead for the proposal; it may be allowed to move along, or it may be killed long before local voters have a chance to vote.

Everything about the bill suggests it’s an issue of local control, and the whether to levy the tax it proposes should be a local decision.

The fact is, however, that many legislators have turned sour on the idea of local-option sales taxes. The main argument against them is that allowing cities and counties to raise their sales taxes produces a state where the sales tax is different from town to town, and where the consumer can have a tough time figuring out how much he’s paying everywhere. House Majority Leader Tim Pawlenty, during a recent visit to Albert Lea, illustrated this kind of opposition, saying such local taxes had gotten to be a problem in Minnesota.

However, the sales tax is the easiest and one of the fairest ways for a municipality to raise money. A truly progressive tax, the sales tax would collect more money from those who spend more, and it would not tax necessities like housing, most food and clothing. Raising money for local projects through a property tax increase hits everyone hard, including people on fixed incomes who already have trouble paying their property taxes.

Also, unlike other forms of fund raising, the sales tax would pay for the improvement – in this case, lake projects and downtown improvements – then sunset automatically once the projects are completed.

The sales tax has many advantages for a city or county, and that’s why others have been quick to implement them when possible. Albert Lea’s neighbors within Minnesota and even in northern Iowa have similar taxes, which they have used to make their cities more attractive places to live or visit. At this time,when Albert Lea is hoping to define itself in a new way and set a new course toward a better future, it would be unfortunate for the city to be denied a development tool its neighbors have already implemented. It would put the city at a disadvantage.

The ultimate decision on any sales tax would be made by voters; all the legislature must do is agree to let the local people decide on a local issue.