Agenda Packets - 1997/04/07 - Laserfiche WebLink

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✓ Our perspective ,VP Beyond tinkering , yc 3'6o with visionaries toward true reform IIIJohn Kennedy liked to say that the time to fix the roof is when the sun is © shining. Well, the sun is shining on Minnesota, and it's time to fix the state's property tax system.Seldom has Crr there been a better opportunity to right the tax-policy wrongs that have nettled © ©r . property owners and renters for decades. That darned tax: Another simple infusion of property tax relief won't do this time. It wouldn't fool taxpayers, who've seen Reforming Minnesota's their tax bills recoil after each shot of property lax system, relief. it shouldn't satisfy legislators, who should be weary of working to tax increases. control property taxes, only to face That package touches all the bases ever more complaints about still high- reform requires—but lightly.Because er taxes and still strapped schools. it stays within the confines of existing The state's $2 billion surplus coin- state income and sales taxes, its im- bines fortuitously with the political pact would be modest enough to leave calendar and public opinion to make many tax-policy critics unsatisfied. this the year to go beyond relief to The visionaries are eyeing the bigger enact systemic change.Coy.Arne Carl- picture.They view the property tax as son,who does not plan to seek reelec- an outmoded vestige of the 19th cen- tion in 1998, should want that plum tury,when property and income were - for his legacy. State senators are four more closely related than they are to- years away from an election. day.They foresee mounting problems And the ever-jittery members of the with a sales tax that falls principally on Minnesota House should take note of exchanges involving goods—and not the results of a Star Tribune-KTCA-TV the basics of food and clothing — . Citizens'Forum last week.When asked when more and more sales involve what should be done with the state services.They take seriously the state's surplus,nine of 11 forum participants constitutional duty and moral obliga- said• they would direct money first to tion to provide an educational system property tax reform. whose quality does not depend on the Significantly,the forum's idea of re- wealth of each community. form goes well beyond a tax cut for The visionaries are challenging the themselves.After a day and an evening mechanics to reach for changes that . of study,participants said they want a go well beyond tinkering, toward new smaller gap between the tax bills of ways of paying for government. It's a . • homeowners and owners of business challenge they should accept. and rental property. They expect the A proposal by state Sen. Steve No- state to provide better for education. yak of New Brighton shows what's They want more government spending possible if the sales tax is extended to restraint. clothing and personal and professional Yes,they want a good deal for home- services, a new "business activities owners too.They would tap the state tax" is imposed, and the proceeds of surplus to make sure that reform costs both directed to reform and reduction no homeowner more.If and when the of the property tax.His bill Would not • surplus is exhausted, they'd boldly go raise taxes overall. In fact, it would where many lawmakers fear to tread. reduce the sales tax rate.Yet it would They'd raise other taxes in order to keep slash property taxes on high-valued property taxes down permanently. homes by a third, businesses by half, That bold step is what separates the rental property even more.The busi- visionaries from the mechanics at the ness activities tax would favor Minae- Legislature.Some expert tax tnechan- sota firm as it falls harder on business- ics, including DPL tax chairs Doug es based elsewhere.The property tax Johnson in the Senate and Dee Long in would move from first to third in total the House, have advanced solid pro- demand for tax dollars. posals for change.The Long-Johnson Novak's concepts were judged too plan would cut all property taxes by revolutionary when they surfaced two increasing the state share of school years ago.Today,with surplus dollars funding; it would shift property tax to ease the way, they shouldn't seem burdens away from business and rent- so fearsome a leap. What legislators al property; it would cushion lower- should fear instead are the disappoint- income homeowners and renters from ed voters they will face if they pass up the impact of that shift; and it would this year's prime opportunity to per- create a lasting disincentive for local manently fix that darned tax.