03-13-1985 Council Agenda - Laserfiche WebLink

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W -_ * Continue to license under a pre- existing municipal ordinance. There is the potential for dual licensing under this option, and it is less than clear whether a city could require a local license if the state has issued a license, since one state law prohibits local licensing if the gambling operator has obtained a state license and another continues to allow local licensing between March 1 and June 1. * Enact an emergency ordinance allowing continued local licensing. This option assumes a city wants to license locally but has repealed their local license. Cities would probably choose to re -adopt their repealed gambling licensing ordinances. An additional fee is allowed for extending existing local licenses or for issuing new local licenses. While this mash -mash of options is certainly confusing, it reflects an intention of the legislature to reduce the burden on local government due to the delay in state regulation. City officials who would like to discuss their city's options are encouraged to call Joel Jamnik at the League office. DEPARTMENT OF REVENUE BILL The Local Finance Division of the House Committee on Taxes made several amendments to H.F. 556 before recommending that it pass. This is the Department of Revenue's bill which would clarify existing statutory language and address administrative concerns. It would repeal the coefficient of dispersion penalty which provides that a city's LGA could be reduced if a city's sales ratio comparing the assessor's market value to actual sales was too low. The League has long sought repeal of this provision. An amendment the division added would provide that for a property to qualify for the confession of judgment provisions for late property tax payment, the homestead portion must be at least 25 percent of the total market value. The committee also approved other amendments which do not directly impact cities. This is the companion to S.F. 472 which the Senate Tax Committee acted on last week. Full House and Senate action is expected soon. PROPERTY TAX STUDY COMMISSION A subcommittee of the House Governmental Operations Committee considered H.F. 388 which would establish a study commission to consider a site - valuation system for property taxation. Site valuation would tax land values much higher than buildings and other improvements. This type of property tax system would dramatically increase taxes on vacant land while generally lowering them on commercial and industrial property. The goal of this type of taxation system is to encourage development of vacant land, encourage the building of large structures rather than small structures on large parcels, and eliminate the current system which penalizes through higher taxes any improvements or additions to existing structures. Ideas the subcommittee discussed included the need for special provisions for agricultural land, the possibility of providing this as a local option, establishing a demonstration project before considering full implementation, and examining the impact on owners of small homes on large lots. Members generally agreed that additional study is necessary before the state could seriously consider implementing such a proposal. However, the committee seemed receptive to the establishment of a study commission. If the full committee recommends this, it is likely that the bill would he rereferred to the Taxes Committee. 13