State Senate rejects bid to allow cities to raise local sales taxes

The Minnesota Senate has voted against giving cities a easier path to raise local sales taxes by a half cent.

A provision in the Republican-backed tax bill would have allowed cities or groups of cities to impose a sales tax for specific projects without going to the Legislature, if local voters approved. But during the floor debate on the tax bill Monday, senators voted overwhelmingly to remove the provision. Republican Sen. Julianne Ortman of Chanhassen, the chair of the Senate tax committee, said she expects to address the issue more thoroughly next year.

"We have a local property tax group that's meeting, that going to make some strong recommendations I hope. It will come out in January 2012, and that will address some of the things like LGA and fiscal disparities. So, that will help inform the conversation about do we need local sales tax authority for our local communities or not."

The Senate adjourned before taking action on the tax bill. Further debate is expected Tuesday.