11-26-1984 Council Packet - Laserfiche WebLink

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reva ive an early payment. Some of the Metropolitan Counties are not forwarding the special assessment collection portion upon early request nor are the delinquent tax collections forwarded on a uniform and timely basis. Recently, the legislature modified school payments by requiring 70% distribution within 7 working days and the remainder within 14 working days of the settlement date. Ironically, the first half property tax payment is at the beginning of school districts fiscal year, whereas, many cities have had to borrow operating funds at market interest to cover costs for the first 6 months of operation. It is not practical nor possible in most cases for cities to accumulate enough reserve funds to cover normal cost.n from Vanuary 1 through dune 20. THE AMM URGES THE LEGISLATURE TO MODIFY THE PROPERTY TAX DISTRIBUTION PROCESS FROM COUNTIES SO THAT CITIES ARE TREATED EQUAL TO SCHOOL DISTRICTS BY REQUIRING AT LEAST 70% OF ALL FUNDS ON HAND AS OF THE SETTLEMENT DATE,INCLUDING SPECIAL ASSESSMENTS,% BE PAID WITHIN 7 WORKING DAYS AND THE REMAINDER PAID WITHIN 14 WORKING DAYS. ANY INTEREST EARNED BY THE COUNTY WHILE HOLDING THE FUNDS SHOULD ALSO BE DISTRIBUTED. FURTHER, THE LAW SHOULD CLARIFY THE PROCESS FOR DELINQUENT PROPERTY TAX COLLECTIONS SO THAT THESE FUNDS ARE NOT HELD BUT FORWARDED WITHIN A REASONABLE PERIOD AFTER COLLECTION WITH ANY INTEREST ACCRUED BY THE COUNTY D RAILROAD PROPERTY TAXATION The existing system for taxation of railroad operating property is not consistent with the taxation of other commercial and industrial properties. The present formula values railroad operating property at about 2 % of the value which would be determined by a local a33ev .or using generally accepted assessing principles. The AMM recommends that a new system of property taxation be established which, enable railroads operating in Minnesota to be taxed consistent with the taxation of other commercial and industrial properties. This system should contain the followirg features: A NEW FORMULA SHUULu BE DEVELOPED FOR THE VALUATION OF RAILROAD OPERATING PROPERTY FOR PROPERTY TAX PURPOSES. THE NEW FORMULA SHOULD CONTAIN TWO EQUAL FACTORS. ONE OF THESE FACTORS SHOULD BE FIFTY PERCENT OF AN AMOUNT BASED UPON: THE AVERAGE VALUE OF ALL OF THE TAXABLE LAND IN THE: CITY OR COUNTY TIMES THE AREA OF THE RAILROAD OPERATING LAND PLUS THE VALUE OF RAILROAD OPERATING STRUCTURES AS DETERMINED BY THE LOCAL ASSESSOR. THE OTHER FACTOR WOULD BE AN AMOUNT BASED ON EITHER THE STOCK AND DEBT OF THE RAILROAD OR THE; CAPITALIZATION OF EARNINGS APPROACH. 'OPERATING LAND' IS DEFINED TO MEAN ANY LAND WHICH UNDERLIES THE OPERATING STRUCTURES DEFINED BELOW AND RIGHTS -OF -WRY ADJACENT THERETO AND WHICH IS NECESSARY TO THE INTEGRAL PERFORMANCES OF RAILROAD TRANSPORTATION SERVICES.