Agenda Packets - 1983/10/24 - Laserfiche WebLink

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m M r These hearings offer an excellent oppurtunity for city officials to inform the Tax Commission about cities' views and experiences concerning both the problems of Minnesota's current tax structure and possible solutions. The Cnmmisainn The Minnesota Tax Commission (sometimes referred to as the Latimer Tax Commission since it is chaired by St. Paul Mayor George Latimer) is a bi-pnrtisan group of IG citi;Tns appointed by Governor Perpich to conduct a major study of Minnesota's tax structure and to recommend changes to improve the at;tte and local revenue system. The Commission is required to make a full report on Minnesota tax policy to the Governor and the legislature by December 15, 1984. In the words of the Commission, the "report is to contain recommendations for tax policies that will remove inequities, promote economic growth, stabilize revenues, meet the needs of Minnesota's people and provide Minnesota with a competitive position among the states." What is the Purpose of the hearings? According to the Commission, "the purpose of these hearings is to receive the viewpoints of the public regarding the equity, administration, and efficiency of the Minnesota state and local tax structure. Specific topics of interest to the Commission include the interrelationships of state and local taxes and direct tax relief programs, the state sales tax and its base, the need for and usage of property tax relief programs, the relationship between taxes and business and job development, simplification of the income tax system, tax policy relating to agricultural land, the appropriate mix of taxes, and proposals for tax changes, including innovative tax sources. Not included in the scope of these hearings are topics relating to the state and local expenditure structure, level of expenditures or the issues pertaining to the structure of workmen's compensation and unemployment compensation programs." What Issues Might Cities Bring Before the Commission? There are several main themes that cities should bring before the Commission. If the cities testifying echo common themes, the Commission will be more apt to give time and attention to the concerns of city officials, There arc hundreds of questions that could be asked about the Minnesota tax system. With your testimony, you may help narrow down these questions and assure that issues important to cities are examined. A. Simplification and Understandability of the Property Tax System Right now, it is very difficult for even informed taxpayers to figure out who is responsible --and at which level of government --for the various decisions that ultimately determine the amount of their annual property tax bill. (And often it is city officials who get blamed for the tax bill even though the city share of the entire bill is usually 25 percent or less and lately many city property tax increases are a direct result of state level decisions or cut backs!)