For more information contact: House GOP Communications 651-296-5520
ST. PAUL – State Rep. Paul Anderson, R-Starbuck, has authored a bill exempting cities from having to pay sales tax on the water they use for public safety reasons.
Anderson said the bill (H.F. 2905) would clear up confusion over sales tax assessed on water used for public safety by fire departments. The Freeport City Council recently learned it may have to pay three years in back taxes due on water used in fighting fires.
“There is a long list of items that fire departments aren’t required to pay sales tax on such as the trucks they purchase and all their fire-fighting gear,” Anderson said. “To make them pay sales tax on the water they use to put out fires is inconsistent and just doesn't make any sense.”
Anderson said estimates show an annual fiscal impact of approximately $45-50,000 to the state. He and staff are now exploring ways to offset that revenue. The House Tax Committee will review those aspects and others when it considers Anderson’s legislation during an April 12 hearing.
“In the overall scheme of state government where our biennial budget is $30 billion, this isn’t a large amount of money,” Anderson said. “But it’s significant to towns and cities like Freeport.”
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Rep. Anderson encourages constituents to contact his new office with input regarding any state legislative issue. He can be reached on the web at www.house.mn/13A and via email at rep.paul.anderson@house.mn. To contact Anderson by phone, call (651) 296-4317. Mail can be sent to Rep. Paul Anderson, 239 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, Minnesota 55155.