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RS-11. Equipment Financing (C) <br />M.S. 412.32 should be amended so that all Minnesota cities are able to <br />Statutory cities, in Minnesota have the power to issue certification of <br />indebtedness, payable in not more than five years, to purchase capital equipment <br />(M.S. 412.301). If the amount of the certificates exceeds one percent of the <br />city's assessed valuation, a reverse referendum provision applies. <br />In 1983, the Legislature granted similar financing, powers to Minnesota's <br />home rule charter cities (M.S. 412.32), without any reverse referendum <br />provision. However, the total principal amount of the certificates (or "capital <br />notes") issued in a fiscal year is limited to no more than one -tenth of one <br />percent of the city's assessed value that year. In many cities, this limit is <br />prohibitively low, and effectively prevents the city from making use of the <br />authority granted in this statute. <br />RS-12. Railroad and Telephone Taxation (C) <br />The existing system for taxation of railroad operating property is not <br />consistent with the taxation of other commercial and industrial properties. The <br />present formula values railroad operating property at about 20 percent of the <br />value which would be determined by a local assessor using generally accepted <br />assessing principles. The League recommends that a new system of property <br />taxation be established which would tax both railroads and telephone companies <br />operating in Minnesota in a manner consistent with the taxation of the <br />commercial and industrial properties. <br />ME <br />