01-08-2025 Workshop Packet - Laserfiche WebLink

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MR-10 STATE PROPERTY TAX The Metropolitan Area Fiscal Disparities Program, enacted in 1971, was created for the purposes of: •providing a way for local governments to share in the resources generated by the growth of the metropolitan area without removing existing resources; •promoting orderly development of the region by reducing the impact of fiscal considerations on the location of business and infrastructure; •establishing incentives for all parts of the area to work for the growth of the area as a whole; •helping communities at various stages of development; and •encouraging protection of the environment by reducing the impact of fiscal considerations to ensure protection of parks, open space and wetlands. Metro Cities supports the Fiscal Disparities Program. Metro Cities opposes any diversion from the fiscal disparities pool to fund specific state, regional or local programs, goals or projects as such diversions contradict the purposes of the program. Legislation that would modify or impact the fiscal disparities program should only be considered within a framework of comprehensive reform efforts of the state’s property tax, aids, and credits system. Any proposed legislation that would modify or impact the fiscal disparities program must be evaluated utilizing the criteria of fairness, equity, stability, transparency, and coherence in the treatment of cities and taxpayers across the metropolitan region and must continue to serve the program’s intended purposes. Metro Cities opposes legislation that would allow for capturing and pooling growth in residential tax capacity to fund specific programs or objectives. Further studies or task forces to consider modifications to the fiscal disparities program must include participation and input from metropolitan local government representatives. The state levies a property tax on commercial/industrial and cabin property. Since cities’ only source of general funds is the property tax, Metro Cities opposes extension of the state property tax to additional classes of property. MR-9 METROPOLITAN AREA FISCAL DISPARITIES PROGRAM 6