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QSo, are you saying that if my property taxes Q Why is so much more money going to non- <br /> increase 10% that my city and school will not re- metro communities? • <br /> ceive 10% more in revenue to spend on services? <br /> AThe formula for aid to cities and school <br /> AThat's right. Cities and schools frequently districts is largely dependent upon property values. <br /> must increase taxes to balance the loss of state aids. The lower property values in non-metro triggers <br /> more aid to cities and school districts there. <br /> QI know I am paying more in income tax, and <br /> the cost of goods I am buying is going up, so sales Q How much of my sales and income tax dollar <br /> tax revenues must also be increasing. If cities and stays within our metropolitan area? <br /> schools are not receiving this money, where is it <br /> going? <br /> In 1987, only 65 cents of every dollar stayed <br /> within the metro area. <br /> AA larger percentage of state aid is being sent <br /> to non-metro communities, which leaves a smaller <br /> percentage within the metropolitan area. In 1986, <br /> 64% of state sales and income tax revenue was What can be done to correct this problem? <br /> generated within the metro area, yet we received <br /> only 46% back in aid, creating an 18% aid gap. In AThe Legislature must recognize the need to <br /> 1987,this disparity increased about 20%,and 1988 develop a more equitable tax system. Call or write • <br /> is projected to be even more. your legislators. <br /> Comparison of Taxes Returned LJ Metro <br /> Per $1 Paid <br /> Metro vs. N_ on-Metro Non-Metro <br /> 11.60 <br /> $1.40 <br /> $1.20 <br /> $1.00 . .............. r$1 Paid <br /> $0.80 <br /> 0.62 <br /> $0.60 <br /> t. <br /> >: v:�Y;Y::v \^: <br /> ••4i:::�:::'... <br /> 0.4 <br /> S 0 <br /> 'Ti:Si!::':rr T.... <br /> ..;fit.,. tLcs�` aa}tt>:Jtr .c <br /> O. ><>�::.:,<;.}.: .:.sit.. <br /> =0.00 <br /> 1985 1986 1987 • <br /> YEAR <br /> Prepared by the Association of Metropolitan Municipalities <br /> 183 University Avenue East, <br /> St.Paul,Minnesota 55101(612)2274008 <br />