> David Brauer continues:
> "A 'driving factor' in [Minneapolis's] rise from third in the 2003
> rankings to first this year appears to be a state-enacted change in how
> voter-approved school and city levy costs are assessed, the
> public-affairs nonprofit said. According to the Citizens League,
> voter-approved levies cancel out a benefit that homeowners typically
> enjoy in property-tax calculations. The change was made during the
> 1990s as part of a state effort to reduce business taxes."
> 
> In other words, it's not the spending, it's the state-mandated tax
> shift onto homeowners...
> 
> Mark Anderson replies:
> I don't get this.  Every city in the state is subject to the same law, so
> why would that law drive up the Mpls ranking?  Is it because Mpls has a
lot
> more businesses than the cities whose ranking they passed?

It's because Minneapolis has relied more on referendum money (for the
schools and the library) than other cities. The state law change made
homeowners pick up relatively more of the referendum tax burden...more even
than overall property-tax rate compression that say businesses and apartment
owners pay less relative to homeowners.

David Brauer
Kingfield

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