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Living off sales tax might get harder

City sales tax has been a hot-button issue in the Magic City for decades. Perhaps even a third rail in local politics; anybody who wanted to get along with the powers that be had to keep their hands in their pockets and their mouths shut anytime the axiomatic question of should we even have a sales tax came up.

In these times, in what appears to be perhaps just the beginning of tough times ahead both oil and ag are suffering the good news regarding the sales taxes collected by the city and more recently by the county, is they still bring in millions of dollars a year for dedicated purposes determined locally.

People are still spending.

The bad news, the ominous news some might say, is that spending is going down, as are the city’s sales tax revenues that we’ve become so dependent on. Not much, mind you. Just a smidge.

According to a recent article by Minot Daily News reporter Jill Schramm, Minot city sales tax collections were down 4 percent in 2015, although the annual total still was the third highest on record.

Minot’s 2015 sales tax collections exceeded 2014 collections for all but four months. Collections in September and December were only two-thirds of the same months in 2014, accounting for much of the smaller total for 2015.

Some have already concluded that the sky is indeed falling on the Bakken and we all know the volatility of ag some will remember that being one of the reasons the MAGIC Fund was created so might we soon be looking at a glass half-full vs. a glass half-empty scenario?

Given that choice, it seems the commonsense response would be to start taking small sips instead of such big gulps.

When the vote whether to reduce the size of the city council is finally settled, perhaps the winners’ first hard look should be at where each and every tax dollar comes from, who it truly benefits and is it needed elsewhere or at all. Would-be aldermen need to be careful what they wish for.

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