03-24-1997 Council Packet - Laserfiche WebLink

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PRICE OF GOVERNMENT AND PROPERTY TAX QUESTIONNAIRE Please answer the following questions. Feel free to elaborate on your responses in the space that’s provided. All results and comments will be published in our next newsletter. 1.Do you support setting the price of government as a percentage of personal income for the state and local governments and doing so before any money is spent? YES NO Background: A 1994 law requires th? iigislature to set revenue targets by March 15th of every odd-numbered year. The targets or “price of government” are expressed as a percent of personal income. They apply to all state and local taxes, fees and charges. The Legislature’s 1995 “price of government” resolution calls for reducing the price from 18.2% to 17.7% of personal income by the end of FY 1999. By setting the price for the next four fiscal years, the Legislature gives taxpayers, local governments and state administrators an indication of the level of revenue growth that they can expect over the next four years. The price of government targets are goals. There are no penalties for either the state or local governments if their revenue growth exceeds the amount anticipated by the goals. 2.Do you agree that business property and rental housing need property tax relief? YES NO Ba-i.A5;ro!5nd: Effective tax rates on both business property and rental housing are among the highest in the United States. This is the case whether the business or apartment is located in the central city, a Twin Cities suburb or greater Minnesota. For business property, the average effective tax rate is almost 6%. This means Minnesota’s property tax is almost the equivalent of having an annual sales tax on every Minnesota business. For apartments, the tax is so high that it frequently means that potential tenants carmot afford the rent necessaiy to make the project cash flow. That means that apartment's won’t be built. I I