<br />Mar 282802 16:88:19 Via Fax
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<br />651 -129 8629 Administrator
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<br />Page 11112 Of 063
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<br />LMC
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<br />-FridayFax-
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<br />A weekly legislaliye update[rom Ihe League o[Minnesota Cilles
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<br />cities and towns thaI was contained In last year's
<br />',rhill
<br />
<br />A new millly tax base replacement aid would be
<br />established for counties where pipeline values
<br />exceed 40 percent of Ihe counly's lax base. This is
<br />Intended 10 offsellhe unexpected shifts in property
<br />(1.l.1;,.",,- ......uwJ l"y lhu 200'11'1\.\)Nd)i la", \\)(U1U&..
<br />
<br />Property Taxes
<br />The bill ~realea a new bed and breakfaal
<br />classification thaI would be Ihe same as homestead
<br />pt~rty and reinstates some of lhe homeslead
<br />borrOWing provlsJOnii affecllna mU1U-Uie properlles
<br />rhM were rene, led In Ih. 7.n01 ,"x hili. .~om. of
<br />m..e mUII,-use properlles expemncea large lax
<br />Increases because of Ihe 2001 "boll'owlng" repeal.
<br />The stale property lax levy will now apply 10 75
<br />percent of Ihe value of eleclrlc generation
<br />machinery. Under last year's tax bUl,thls properly
<br />was exempl from the slale property lax.
<br />
<br />Tax Increment Financing
<br />The TIP granl program would be relnslaled and Ihe
<br />flI'lnl wnlllct h~ 11"11~lly r..~l(\[..ct wltl1 , ~ln mlllli'"
<br />appropriation. The bill also allows cllles <a use ih.
<br />delic!1 reduclion provisions Ihal were enacled In lasl
<br />year's lax bill withoUI being required to poel
<br />avtJllu.Gltl 11ll.';1t:IIJI:;IU~ [lOIIl ulllt\1 Jbidcl:J tu nt~t
<br />reduce any deficit. The deficil reduclion provisions
<br />avallabl. io the elly Include an election Ihat Ihe
<br />orlt,lnallooall4X we be allowed to !loal and an
<br />ele~lion 10 ~hant,e the !lseal dlspal'lUts ~onlrlbutlo.1
<br />from Ihe district.
<br />
<br />Local Taxes
<br />"Bloominglon lodging tax lncr,as< of 1 percent.
<br />-Roches/er lodging tax increase of 2 percent.
<br />-Hermanloll'n-expands Ihe permissible u..s for
<br />Iheir local taxes sales tax to Include a community
<br />"rill~:ltii1n .'Inrl rl~l"":rn,'tinn I'a\ntru'j .'1nrl ilo'" fhdlllYI:1
<br />cily hall and public works garage., and certain Irafflc
<br />in'\p\'ovot\'''Itnl!..
<br />-Alber! Lea-up to a I" percenl sales lax for lake
<br />improvements and downtcwn imprcvements.
<br />-Cloquel-up 10 a V, percent sales tax for a senior
<br />center, park lmpro\!emenls and water and sewer
<br />impro"emenls and eXlenslons.
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<br />March 28, 2002
<br />Page 2
<br />-Ely-up to a 1 porcelli sales lax for clly fad lilies
<br />rlmi rprlpvplopl1u"nt iirth'ltii''''
<br />-Bu"er &y up to a 1 pelcenl ulro 11lX for
<br />community building and recreational facilities. fire
<br />hal~ streel Improvements and waler and SeIVer
<br />upgrades.
<br />-Medford-up to a "i percenl sales lax for
<br />waslewater t,eatment fadlily
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<br />Tax Exemp!ioifS
<br />-Albert Lea meal"padlng f3dlity construcliOll
<br />malerials
<br />-MlnnMpnll~r:hildr~n', Th.,.,lr9. mnMlI1c.tinn
<br />m,lerl~l~
<br />-Tl1tet H,iver Falls ice Zl.rena ~on!U"uction ('11.1teri.aIS
<br />-Guthrie Thealre construction materials
<br />Hydroeleclric gonerallng radlil:1
<br />-Walker Arlse.nler conslruction malerials
<br />
<br />Loading Zone Provision V ott'd Down
<br />
<br />in the House
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<br />A provision thai would ha"e prohibited cities from
<br />issuing variances for loading zones on MSA and
<br />r:S,~H rl1ilct~ W,l.~ ..limlnM.d on th. HOIL'. Flnnr
<br />thit aftornoon. Tho Illoa.uro lI'at tuck.d into a non
<br />\:UIILJuVI(:I~ial Dlc:vallw~lll U[Tli:1ll~U(li;!.tiOll
<br />(MnIDOT) hOIl~.kMnin~ hill (HF 1199) hy Rftn.
<br />Tom Workman (R-Chanhassen) during a commillee
<br />hearing earliEr rhl. session. II would ha"E been
<br />effective retroactively for any buildings or project:;
<br />receivlnA a buildlnA permil afler December 31,
<br />2001. Workman cited publi< ,.fely and traffic
<br />congestion as Ihe reasons behind Ihe policy.
<br />
<br />Rep. Jean WaAenlus (DFL-Mlnneapolis) ied Ihe
<br />effort 10 amend Ihe !aaguage oul of the bill. Her
<br />effort received bi-partisan support, notably from
<br />Rep. Jim Rhodes (R-SI. Louis Park), Dan McElroy
<br />(R-Burn,ville), and Joe Mullery (DFL-
<br />Minneapolis). The amendment passed on a vole of
<br />75 to 51. The provision does notexis! in the Senate
<br />compan Ion to the bill.
<br />
<br />FOl more lnformllion on clly IClltS:Jtlve ISSllli&, conl!Cl lIn.l' mernb~l or lhe; LeaiuiI: ot Mlnnuo!t Clli:~& if\!ali'~..,.o;:mmen;al RtlJ.'ii<))1S I<<\'t'"
<br />651. 281.1200 or 800.925.1122
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