01-0174R

RESOLUTION MEMORIALIZING THE CITY'S OPPOSITION TO PROPOSED STATE TAXES ON NOT FOR PROFIT CORPORATIONS.

BY COUNCILOR NESS:

        City of Duluth makes the following findings:

                1. The governor of Minnesota has proposed to tax not for profit corporations' sales of tickets, memberships, and fund raising sales over $25,000.

                2. The governor of Minnesota has proposed allowing cities to require not for profit corporations to pay a new kind of tax called a "public safety fee."

                3. Not for profit corporations provide programs and services that are essential to the quality of life in Duluth.

                4. The legislature has granted tax exempt status to not for profit corporations. This is indicative of a long standing public policy to encourage and assure that these corporations continue their activities.

                5. At this time, not for profit corporations are being asked, by the government, to provide more services to more people. Many of these corporations are supported by tax dollars. If the governor's proposals were enacted, in many instances the corporations would have to use tax dollars received from the government to pay new taxes levied by the government. This is irrational and diminishes the resources available for delivery of services by the corporations.

                6. Donors contribute to not for profit corporations with the expectation that the money will be used to carry out the corporation's mission, not to pay taxes. The donors have already paid the applicable tax on the money donated.

        THEREFORE, BE IT RESOLVED by the city council of Duluth that the city is opposed to the governor's proposals to allow a public safety fee to be charged to not for profit corporations and to tax such corporations's sales of tickets, memberships, and fund raising sales in excess of $25,000;

        BE IT FURTHER RESOLVED that the legislative agents of the city be instructed to oppose these proposals, and the elected representatives be urged to oppose them.


STATEMENT OF PURPOSE:  This resolution expresses the council's opposition to proposed taxation of nonprofits and instructs the city's lobbyist to oppose them.