2010-03-23_PWETC_AgendaPacket - Laserfiche WebLink

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Recommendations demonstrated a high property tax plus aid capacity, the criteria would indicate a high likelihood of failure for that proposal. Such a system could be an incentive for communities to compete positively by cooperating. 3. Approval Process It is the Department of Revenue's view that the approval process can remain with the legislature and still reach the goals of being more objective and less political. First, by setting out published, objective criteria for approval, communities will have some standard by which to measure the merits of their proposals. Second, to compare proposals, provide a more open discussion of proposals, and reduce the uncertainty and expense associated with preparing proposals, the legislature could set aside specific hearing days in the respective committees, devoted to local sales tax authority proposals. The third recommendation requested by the legislature regards the feasibility of authorizing the commissioner of revenue to approve or deny local sales tax propos- als. It is certainly feasible to create within the Department of Revenue a capability for review and decision on local sales tax proposals if a uniform set of criteria could be agreed upon by the legislature. The department has expertise in gathering and analyzing the type of data necessary to make such decisions. Although some minor costs would be incurred in setting up and staffmg this function, it would not impose an undue burden, nor be beyond the department's capability. Indeed, during the public meetings, the suggestion that the department do so was made several times. Those supporting the proposal expressed the hope that a departmen- tal approval process would be less political and more objective. In the department's view, the approval process can remain with the legislature and still reach the goals of being more objective and less political. First, by setting out published, objective criteria for approval, communities will have some standard by which to measure the merits of their proposals. Second, the legislature could set aside specific hearing days in the respective committees, devoted to local sales tax authority proposals. This would promote better "apples to apples" comparisons and With some minor demonstrate more openness in the system. It would also reduce the uncertainty and changes to existing expense of waiting for an opportunity in the general mix of tax bill hearings. Third, process and practice, by requiring that a community come to the legislature after having held a successful we believe the legisla- referendum, the legislature will have a better indicator of local support and possibly ture can address the fewer proposals to review. Finally, the committees could issue a report that explains public concerns about their decisions in terms of the stated criteria. This would provide a valuable guide the authorization to future proposals, and could reduce the number of unsuccessful proposals. process. With some minor changes to its existing process and practice, we believe the legislature can address most of the public concerns about the authorization process. It is our view that it will be preferable to have the reformed process remain with the legislature. We come to this recommendation because it is our view that the grant- ing of local sales tax authority has broad policy implications that should, more properly, reside within the purview of the legislature. While the department stands ready to accept this role if the legislature so chooses, we feel that granting local sales tax authority is less an administrative function and more a policy function. 22