CCP 10-28-2002 - Laserfiche WebLink

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1 extended to other infrastructure, such as road improvements, even though properties are . 2 benefiting from the improvements. 3 4 Response: Cities should be allowed to delay assessments against property located 5 outside the city for road improvements benefiting property abutting the improvement but 6 not previously assessed for the improvement. For example, if a city makes improvements to 7 a road that benefits city residents and township residents, the city should be able to recover 8 costs through future assessments to the township property when the property is brought 9 into the city. Once the township property is brought into the city, the city would then be 10 able to assess that property for road improvements previously done but not assessed at the 11 time of the improvements. 12 13 FF-18. Taxation of Electronic Commerce (GC) 14 15 Issue: Sales over the Internet and through other electronic means are projected to 16 increase exponentially over the next several years. Electronic transactions pose significant tax 17 policy challenges because of the difficulty of assigning a location to electronic sales and because 18 many Internet goods are not tangible property. 19 20 Response: Federal tax policy should not place main street businesses at a 21 competitive disadvantage to electronic retailers, must not jeopardize repayment of bonds 22 backed by state and local sales tax revenues, and should ensure stability in state and local . 23 revenues. To address the challenges created by the growth of ecommerce, the League 24 supports the multi-state effort to develop a streamlined sales tax system. 25 26 FF-19. Limited Market Value (GC) 27 28 Issue: The 2001 Legislature enacted a phase-out of the state's limited market value 29 (LMV) system. Under the LMV system, homeowners and cabin owners who experience rapid 30 escalation in their property's value, effectively have a temporary exemption of taxes on a portion 31 of that growth. This exemption has grown rapidly over the past several years and now shifts 32 substantial property tax burdens to other types of property. On the other hand, a rapid phase-out 33 of the program could dramatically shift tax burdens back to homes and cabins. 34 35 Response: The Legislature should closely monitor the effects of the phase-out of 36 LMV to avoid excessive tax burden increases for currently benefiting properties. If the 37 phase-out schedule results in excessive tax increases, the Legislature should increase 38 funding for the targeting program or delay the scheduled phase-out, which will buffer the 39 tax burden increases. 40 41 FF-20. State Charges for Administrative Services (GC) 42 43 Issue: Currently, some state agencies have wide discretion in setting the fees for special 44 services they provide to local governments. For example, the Dept. of Revenue recently . 45 increased the fee for administering local sales taxes by 80 percent in the middle of a budget year 6