Carol Becker said:
>> .... if the state said...the School Board would not be
>> able to levy property taxes and instead the state would
>> give the School Board money based on this formula, the
>> School Board would get less money ....
It is my impression that a more important TIF-related concern about the
proposed state tax reform is its potential impact on City revenues.
Correct me if I am wrong, but isn't one effect of TIF the preemption of
the county and school portion of the taxes from TIF districts and the
redirection of these funds to the City treasury. So if the State lowers
property taxes and compensates the schools by sending them an equivalent
amount of money directly, then the TIF districts will have their taxes
lowered by the amount the schools will now be getting directly from the
state (over and above what they already get directly).
Only trouble is, for the TIF properties the schools **weren't** getting
the money--the City was. So the TIF property tax revenues will be
reduced by the tax reform the City will receive will come up short and
will have to search elsewhere to pay off its TIF bonds and meet other
obligations (like NRP) that it supported with the TIF tax revenues.
Again, someone please tell me if my understanding of this is correct.
Alan Shilepsky
Downtown
_______________________________________
Minneapolis Issues Forum - Minnesota E-Democracy
Post messages to: [EMAIL PROTECTED]
Subscribe, Unsubscribe, Digest option, and more:
http://e-democracy.org/mpls
