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The House’s tax committee, which is close to releasing its omnibus bill, has pre-approved three local sales tax requests this session — and Winona’s isn’t among them.
Rep. Gene Pelowski, DFL-Winona, said those requests are ones that voters have already approved in their respective cities. Winona would still need voter approval before it could levy the tax, which would raise about $8 million to extend Louisa Street to Highways 61 and 43.
And there are two other complications.
The first is a separate bill moving through the House that would prevent cities and other municipalities from increasing local sales taxes in order to generate revenue.
The second, Pelowski said, is a threat from Gov. Tim Pawlenty to veto the House’s tax bill because of wording that would create a new tax bracket for Minnesota’s richest residents.
There are other ways Pelowski can push the sales tax legislation, and it isn’t clear yet how everything will play out. Still, support at the Capitol for Winona’s bill is decidedly less friendly than what city leaders had hoped for.
The bill’s Senate companion has had an easier journey, where it’s carried by Sen. Sharon Erickson Ropes, DFL-Winona. It’s included in the Senate tax committee’s omnibus bill and, barring any unlikely amendment that would remove it, will pass the full Senate.
The city pushed a half-cent sales tax last year that would have raised $20 million for several transportation projects, which voters rejected at the polls in November.
In response, the city honed its request to a single project — the Louisa Street extension — and went to the Legislature for approval.
If the request survives the Legislature, the city will bring it to voters in a September special election.
If voters approve the tax, the city would collect it for 15 years or until it raised the $8 million.
Reporter Brian Voerding can be reached at (507) 453-3514 or bvoerding@winonadailynews.com
Re: Thank God! wrote on Mar 31, 2007 12:33 PM: