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LOCAL OPTION SALES TAX <br /> History of Local Option Sales Tax <br /> Minnesota was 490 state to enact a statewide sales tax in <br /> 1967. <br /> 1971 "Minnesota Miracle"legislatively designed to generate <br /> more monies at the State level to distribute to local <br /> governments in the form of "state aid"based partially on <br /> "need': <br /> �- Restricted local government's ability to levy sales tax <br /> Independently by prohibiting new or increased local taxes <br /> on sales or income, 5 cities were exempt. <br /> Special State legislation now required to implement. <br /> Pressures in 1990's for alternatives to local property taxes <br /> dramatically increased number of requests. <br />