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RELEVANT LINKS: <br />Minn. stat. § 297A.99, subd. <br />A political subdivision may not advertise or expend funds for the promotion <br />1 (d) (e). <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 indicating the city <br />council's approval of the tax. <br />• Provide notice of and conduct public forums at which proponents and <br />opponents on the merits of the referendum are given equal time to <br />express their opinions on the merits of the referendum. <br />• Provide facts and data on the impact of the proposed sales tax on <br />consumer purchases. <br />• Provide facts and data related to the programs and projects to be funded <br />with the 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 />Tax revenue includes current property taxes; delinquent property taxes; <br />Minn. Stat. § 282.08. <br />Minn. stat. § 21613.025. <br />apportionments from tax forfeit sales; franchise and public utility taxes; and <br />Minn. stat. § 276.131. <br />city sales, gambling, and local lodging taxes, if any. Cities in Minnesota <br />Minn. Stat. § 349.213 <br />Minn. stat. § 469.190. <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, Property Tax 101, <br />The property tax is the primary revenue source for cities and it applies to all <br />August, 2015. <br />taxable property within city boundaries. The Minnesota property tax system <br />Additional Information on <br />is complicated, including classifications of property based on the use of the <br />Sources of Revenue. <br />property. Over time, the system has become more complex and difficult for <br />taxpayers to understand. Unfortunately, local officials must frequently <br />Accounting Manual for Small <br />Cities and Towns in <br />explain how the system works and take the blame for the complicated <br />Minnesota. <br />features of the system. Local officials, however, can only control local levy <br />Uniform chart of Accounts, <br />decisions and must focus on that for budgeting purposes. <br />Office of the State Auditor. <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 />League of Minnesota Cities Handbook for Minnesota Cities 10/15/2015 <br />Municipal Budgeting Chapter 211 Page 13 <br />