2001_0108_packet - Laserfiche WebLink

Home

� to their constituents, most MLC cities levied below the limit for property taxes payable during the past three years. • Policies and procedures are already in place that exert control over local spending. For example, the truth in taxation process provides homeowners with household specific effects of budget decisions as well as public hearings at which they have an opportunity to express their concerns. The MLC strongly opposes any legislation to re-impose levy limits in the 2001 session. Although the 2000 Legislature allowed levy limits to sunset, it did not repeal levy limit language in the statutes. The MLC supports eliminating all references to levy limits in the Minnesota Statutes. Another questionable method the Legislature has considered in its efforts to reform the property tax system is a property tax freeze. This proposal, which has been discussed in the Senate during past sessions, is the epitome of micro-management. A property tax freeze would only defer property tax increases to the following year and may jeopardize bond financial ratings. Cities, especially rapidly growing MLC suburbs, have increasing needs for local services such as police and fire. Not only are there cost pressures due to inflationary increases in wages and benefits, but many growing cities are experiencing cost increases due to expanded infrastructure and personnel. The MLC views a property tax freeze as tinkering, not major reform. E) SUPPORT REPEAL OF LAW REQUIRING A PUBLIC HEARING ON TAX LEVIES IN ADDITION TO THE TRUTH IN TAXATION HEARING New legislation adopted in 1999 requires cities to conduct a public hearing and adopt a resolution if their levy certification tax rate would increase while market values remained the same as the previous year. The MLC opposes this new mandate and would support repeal of the 1999 law for the following reasons: • The formula established to calculate the comparison tax rates uses the current tax base for both years. A tax rate comparison using the same tax base for both years is confusing to the public because it ignores changes in the tax base that have occurred. • The formula used in this calculation does not allow for growth and inflation. • The new requirement serves no apparent purpose, particularly with extensive truth in taxation notice and hearing requirements in place. It creates additional busy work for the staff and council. The MLC believes that a better mechanism of providing this information to property tax payers would be to include it on the truth in taxation form. Cities could then discuss this information with the public at their annual truth in taxation hearing.