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RELEVANT LINKS: <br />League of Minnesota Cities Handbook for Minnesota Cities 9/10/2024 <br />Municipal Budgeting Chapter 20 | Page 12 <br />Minn. Stat. § 297A.99, subd. <br />1 (d). A political subdivision may not advertise or expend funds for the promotion <br />of a referendum to support imposing a local option sales tax, but a city may <br />expend funds to: <br /> • Conduct the referendum. <br />• Disseminate information included in the resolution but only if the <br />disseminated information includes a list of specific projects and the cost <br />of each individual project. <br />• Provide notice of and conduct public forums at which proponents and <br />opponents of the referendum are given equal time to express their <br />opinions on the merits of the referendum. <br />• Provide facts and data on the impact of the proposed local sales tax on <br />consumer purchases. <br />• Provide facts and data related to the individual programs and projects to <br />be funded with the local sales tax. <br /> Understanding where city funds come from is the first step in developing a <br />budget plan. Based on the state auditor’s uniform chart of accounts, revenue <br />for most cities includes money from the following 13 categories. <br /> A. Tax revenue <br />Minn. Stat. Ch. 275. <br />Minn. Stat. § 282.08. <br />Minn. Stat. § 216B.025. <br />Minn. Stat. § 276.131. <br />Minn. Stat. § 349.213. <br />Minn. Stat. § 469.190. <br /> <br />Tax revenue includes current property taxes; delinquent property taxes; <br />apportionments from tax forfeit sales; franchise and public utility taxes; and <br />city sales, gambling, and local lodging taxes, if any. Cities in Minnesota <br />receive a variety of shared tax revenue, or general state aid, from the state. <br />Amounts for each city are typically available from the Minnesota <br />Department of Revenue on or before Aug. 1 of each year. <br /> 1. Property tax revenue <br />LMC website: Property <br />Taxation 101. <br /> <br />The property tax is the primary revenue source for cities, and it applies to all <br />taxable property within city boundaries. <br /> <br />Accounting Manual for Small <br />Cities and Towns in <br />Minnesota. <br />Uniform Chart of Accounts, <br />Office of the State Auditor. <br />The Minnesota property tax system is complicated, including classifications <br />of property based on the use of the property. Over time, the system has <br />become more complex. Local officials, however, can only control local levy <br />decisions and must focus on that for budgeting purposes. <br /> 2. Setting the property tax levy <br /> Each year, cities certify a property tax levy for the following year in dollars, <br />not at a specific rate. The council should set a tax levy high enough to <br />provide money for the following purposes during the upcoming budget year: <br />21