01-08-2025 Workshop Packet - Laserfiche WebLink

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MR-11 CLASS RATE TAX SYSTEM MR-12 REGIONAL FACILITY HOST COMMUNITIES MR-13 SALES TAX ON LOCAL GOVERNMENT PURCHASES Metro Cities opposes using the state property tax to fund specific programs or objectives generally funded through state income and sales tax revenue. To increase transparency, Metro Cities supports efforts to have the state provide information on the property tax statement regarding the state property tax. Metro Cities opposes exempting specific classes of property under the tax as such exemptions shift the costs of the tax onto other classes of property. Metro Cities opposes elimination of the class rate tax system or applying future levy increases to market value since this further complicates the property tax system. Municipalities hosting regional facilities such as utilities, landfills or aggregate mining incur costs and effects such as environmental damage or lost economic development opportunities. Communities should be compensated for the effects of facilities that provide benefits to the region and state. Metro Cities supports efforts to offset the negative effects of these facilities and activities on host communities. Metro Cities would prefer that municipalities be allowed to collect a host fee that may be adjusted when state decisions affect those fees. Metro Cities supported the 2013 reinstatement of the sales tax exemption for purchases of goods and services made by cities. This reinstatement does not apply to all local government purchases. To ensure citizens receive the full benefit of this exemption, the law should treat purchases of all local government units the same, including purchases made by special taxing districts, joint powers entities, or any other agency or instrumentality of local government. Metro Cities supports simplifying the process on the exemption for construction materials that is complex and cost ineffective or converting the process to a refund program. Metro Cities supported the law enacted in 2021 that exempts construction materials purchased to construct public safety facilities from state sales tax. Metro Cities supports granting an extension of the motor vehicle sales tax exemption to all municipal vehicles that are used for general city functions and are provided by governmental entities. Currently, only certain vehicles, including road maintenance vehicles purchased by townships, and municipal fire trucks and police vehicles not registered for use on public roads, are exempt from the motor vehicle sales tax (MVST). 7