David Brauer started out this discussion on property taxes with this short
message:
"I'm curious how the property tax deal cut between the governor and
legislative leaders affects Minneapolis finances. Reports characterize the
deal as "lowering & flattening" property tax rates - particularly for
apartments and businesses, but also a dramatic cut for higher-valued homes.
Currently, homeowners pay 1 percent of assessed value up to $76,000, and
1.65 percent of assessed value over that. In the new deal, everyone pays 1
percent up to $500,000 and 1.25 percent above that.
My question: if the rates are property tax rates are sliced, and the city
treasury relies quite a bit on property taxes, doesn't this the city
treasury takes a big hit? Perhaps the city's property tax slice is
independent of the doings at the capitol. Can someone in the know explain
how it all fits together?"
The answer to his question is "Yes, the city treasury takes a big hit."
This so-called tax reform is a poorly disguised shift from those who can
afford to pay to those who can not, but most importantly, it will shift the
burden from the rich suburbs and downtown to the home owners of the core
cities and the inner ring suburbs. The next two paragraphs are an email
exchange I was forwarded between an inner ring mayor and a former Mpls
senior budget official..
"Have you been following the property tax reform legislation? I believe
it is a sellout. Residential property, particularly in the Cities and first
ring suburbs are going to have a very difficult time maintaining their level
of services. Our present system was a partnership, business paid to assure
housing, schools and strong communities in return for an excellent work
force. This system is not cheap but it has produced excellent results for
both citizen and business. Now that we are globilized we are less sensitive
to the community and a lot more sensitive to global profit. We must protect
this partnership."
"The system that was in place did just what you
outlined. In addition, the tax capacity system incented a mixed use city
through the higher taxes for rental and commercial properties. The
revisions all favor outer ring suburbs and the inner ring and core cities
are taking a big hit. Wait until you see the impact on TIF with the
reduction in the school levies. I am not a fan of TIF, but the reality is
this also hits the inner ring and core cities harder."
So my questions are
1) Why are our local legislators not exposing this to the public?"
2) How are we going to run this city when this tax reform drastically
cuts
into our city revenues?
3) Who can explain the details of this new tax reform clearly and
succinctly so that we get a handle o what is going on?
4) What will be the impact on the Mpls School district and the Mpls
Park
Board?
5) Does the Governor understand how seriously this impacts the core
cities
and how blatantly it lines the pockets of those who already are
blessed
with plenty of money?
6) Does the mayor know what is going on?
Dean Zimmermann
Commissioner District 3
Mpls Park and Recreation Board
Candidate for Mpls City Council, Ward 6
612-722-8768
[EMAIL PROTECTED]
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