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Bill would raise audit threshold for municipal liquor stores to $500,000; representatives cite cost pressure on small towns
Summary
Representative Anderson introduced House File 1956 to increase the revenue threshold requiring municipal liquor stores to submit audited financial statements from $350,000 to $500,000, citing inflation and rising audit costs for small towns; the committee laid the bill over.
Representative Anderson brought House File 1956 to the committee on March 13, seeking to raise the audited financial-statement threshold for municipal liquor stores from $350,000 to $500,000.
Anderson said the $350,000 threshold was set in the early-to-mid 1990s and that adjusting it to $500,000 is "a cautious and acceptable adjustment" when accounting for inflation. He cited a State Auditor report that showed municipal liquor operations as important gathering places in Greater Minnesota and noted recent declines in net profits across the sector.
Mayor Simmons of De Graaf, a small Swift County town with a municipal liquor operation, was unable to connect by phone for technology reasons; Representative Anderson summarized the mayor's prepared comments to the committee. Anderson said the mayor told him the city's 2012 audit cost $12,000 and that a proposed audit for the next year was priced at $18,500 — a roughly 54% increase that the town found prohibitive.
Members expressed support for the intent to help smaller municipal operations offset compliance costs. Representative Bonner said he appreciated the bill as a measure to help small businesses and municipal enterprises. No committee vote was taken; Representative Anderson's bill was laid over for possible inclusion.
Ending: The committee laid HF1956 over so staff and legislators can continue to examine audit-cost impacts on small municipalities and consider whether to adjust the current statutory threshold.
