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Municipal Revenue & Taxation <br />measurementstodeterminetheallocationof stateaidstolocalgovernmentsorrestrictthe <br />abilityoflocalgovernmentsinestablishinglocalbudgetsandlevies. <br />1-BCOVID-19PandemicAssistance <br />In 2020,$841.4millionofthestateÓsallocationoftheCoronavirusReliefFund(CRF)was <br />distributedto cities,counties,and townships.Metro Citiessupportedthedistribution of theCRF <br />funds to assist cities in addressinglocal serviceneeds and expensesrelated to theCOVID-19 <br />pandemic, includingcertainpersonnel costsas well aslocal service and operational <br />improvements and modifications required toensure public health and safety. <br />Metro Cities supports additional federal assistance to municipalities to address revenue <br />losses including property taxes, utility and permit fees, local sales taxes and other revenue <br />streams,resultingfromtheCOVID-19pandemic, and supportedfunding appropriated <br />throughthefederal Local Fiscal Recovery Fund under the American Rescue Plan Act. <br />Metro Cities is monitoring federal rules on uses for fundsas well as federal and state <br />requirementsand processes.Metro Cities supportsclarity in the guidance on the usesof <br />funds and flexibility in eligible uses that allows local officials to sufficiently addressvaried <br />local needs and challenges resulting from the pandemic. Metro Cities will monitor <br />additional direction and clarity on uses and requirements as funds are distributed. <br />Metro Cities supports state financial assistance to address the long-term financial effects of <br />thepandemiconlocalgovernment budgets andrevenues,andchangestostatelaws to <br />allow cities temporary flexibility in the use of unobligated tax increment financing (TIF) <br />increment and unobligated local sales and lodging tax revenues, to address local financial <br />challenges resultingfromthepandemic.Metro Cities supported2021 statutory changes <br />that allow unobligated increment to be used to assist businesses. <br />1-CRevenueDiversificationandAccess <br />MetroCitiessupportsabalancedanddiversifiedrevenuesystemthatacknowledgesdiverse <br />city characteristics, needs and revenue capacities and allows for greater stability in <br />revenues. <br />Metro Cities is monitoring the effects of 2019 laws that modified statutory requirements for local <br />option salestaxesand continuestosupportthe ability ofacitytoimposealocal optionsales <br />tax for public improvements and capital replacement costs using local processes specified <br />bylawbutwithout theneedforspeciallegislation. MetroCitiessupportshavinglocalsales <br />taxreferendums conductedatageneralor specialelection. <br />The Legislature should recognize equity considerations involved with local sales taxes and <br />continueto provideaidsto citiesthat havehighneeds,overburdensand/orlowfiscal capacity. <br />Metro Cities supports a modification to state laws governing local lodging taxes to allow <br />citiestoimpose uptoafivepercentlocallodgingtax,andtheabilityofcitiestomodifythe <br />usesofrevenues tomeetlocalneeds. <br />2022 Legislative Policies <br />2 <br /> <br />