ST. PAUL - A western Minnesota legislator lost his fight on Wednesday to get more state aid for cities.
Rep. Paul Marquart's proposal to add $66 million to Local Government Aid failed on a 67-67 vote after a two-hour state House debate. The Dilworth Democrat persuaded just one Republican to join the DFL in backing him.
"It is difficult to break the chain of partisan politics down here," Marquart said.
The aid discussion came during more than 10 hours of debate on the House tax bill, which passed 80-53.
Included in the measure is permission for most Minnesota cities outside the Twin Cities to add a half-percent sales tax on top of the state tax. Current law requires legislators to give permission to each city that wants to add a sales tax. The Legislature seldom grants that permission.
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Much of the debate centered on Marquart's amendment, which would have guaranteed the smallest towns a minimum of $400 per person and raised Local Government Aid payments to most others.
Tax Committee Chairman Phil Krinkie, R-Shoreview, said Marquart was trying to tweak the aid formula to help cities in his area.
"Rep. Marquart has sat down and said here, 'I want to pick the winners and the losers,' " the 15-year House veteran said.
Marquart, however, said his amendment would help big cities and small communities. Krinkie's plan would take money from St. Paul, Minneapolis and Duluth and give it to rural cities.
"This formula is going to be crucial in keeping our small cities in Minnesota viable," Marquart said of his proposal.
Krinkie's plan would put less than $10 million more in LGA than is now available.
The House tax plan differs greatly from one adopted by the Senate. The Senate measure would increase Local Government Aid in addition to boosting income taxes on the richest Minnesotans. The House bill doesn't raise state taxes.
Moorhead City Manager Bruce Messelt stood outside the House chamber monitoring progress on the debate. His main concern was a provision allowing property owners to demand a public referendum if they felt property taxes were too high.
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"People living in Fargo would be able to vote to force a referendum in Moorhead," Messelt said.
Many Moorhead apartments, and retail and industrial property, are owned by Fargo residents, he said.
The tax bill includes two provisions to ease cabin property taxes.
"We need some relief, but how much can we ask for?" Rep. Morrie Lanning, R-Moorhead, said when others tried to dramatically increase the tax cuts.
Lanning, who wrote the provision, said the owner of a $100,000 cabin would save $100 a year.
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Rep. Al Juhnke, DFL-Willmar, claimed the GOP-crafted tax bill will lead to more local property tax increases.
"House Republicans made it clear where their real priorities lie," Juhnke said. "We had a chance to bring new money to all of our communities in rural Minnesota, but despite all of the talk about bipartisan cooperation, only one Republican voted to bring more property tax relief to rural Minnesota. Instead, Republicans voted to protect foreign tax evaders at the expense of Main Street businesses and rural homeowners."
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Juhnke said that besides raising property taxes, the House bill would cut the state renter's credit by $66 million -- twice the amount proposed in Pawlenty's budget -- extend the sales tax on medical equipment and increase taxes on liquor, cigarettes and rental cars.
Readers can reach Forum reporter Don Davis at (651) 290-0707
