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Small town fights off decline, seeks construction tax break

Trimont, by last census, has a population of 747. When a couple of residents of the southern Minnesota community were lamenting the demise of available services – groceries, gas, hardware and liquor — they decided to do something about it. Thus began the effort to raise over $800,000 to build a town center.

Town Center Inc. opened for business in 2015.

“We employ about 20-24 people. … It’s brought great economic growth, it’s revitalized our town,” said Randy Grupe, who was part of the fundraising efforts.

Randy Grupe testifies before the House Taxes Committee for a bill sponsored by Rep. Bob Gunther, right, which would, in part, provide a retroactive exemption to nonprofit economic development corporations for construction materials. Photo by Paul Battaglia

He was before the House Taxes Committee Thursday in support of a bill that would provide a nearly $70,000 sales tax exemption and refund of taxes paid on materials, supplies and equipment used in the construction of the new retail development.

HF504, sponsored by Rep. Bob Gunther (R-Fairmont), was held over for possible omnibus bill inclusion. It has no Senate companion.

WATCH The House Taxes Committee discusses the bill 

The town is an example of what can happen when people come together for a common cause, Gunther said. Townspeople formed a nonprofit, raised the thousands of dollars needed and borrowed $2 million. “They did this because the town wanted to stay in existence. They didn’t want to shrink; they wanted to grow; they had foresight.”

The bill specifies that the sales tax exemption would be retroactive for purchases made between Jan. 1, 2013, and Jan. 1, 2017.

Some committee members raised concern that, if enacted, this could open the door for similar exclusions for other communities.

“We gotta be careful about the precedent we set forth. But, I don’t think there are many cities that are able to come together like you to be able to create such a town center, and if they can, more power to them,” said Rep. Joe McDonald (R-Delano).


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