Property Taxes in Minnesota

1. Property Taxes in Minnesota

2. A Production Spectrum Public records

3. A Production Spectrum Public Private – under coercion Public records

4. A Production Spectrum Public Private – under coercion Regulation – fines, confiscation, imprisonment Financial Incentive • taxation – income, property • loans, grants Risk assumption – mortgages Public Infrastructure – construction • water treatment, sewers, roads, schools, airports and airways, waterways, recreation areas Collecting and disseminating statistics • Public records, crop statistics, census material Public records Givings and Takings

5. Public Finance • “The proper role of government provides a starting point for the analysis of public finance” (Wikipedia <public finance>) • What can government do? • What should government do?

6. Financing Governments Current Operations Maintenance New Development (Capital)

7. Financing Governments Current Operations Maintenance New Development (Capital) State Local Government

8. Financing Governments Current Operations Maintenance New Development (Capital) State Local Government Financed Out of current income – user fees, taxes, general fund, dedicated funds

9. Financing Governments Current Operations Maintenance New Development (Capital) State Local Government Financed Out of current income – user fees, general fund, dedicated funds Out of future income – debt financing State – Minnesota state bonds School District Met Council Cities Counties Municipal Bonds Minnesota

10. State Government Budget • Minnesota State Budget (Resources on Minnesota Issues) • State Budget and Taxes • DNR Budget • Capital Budget - Minnesota Management & Budget

11. State Government Budget • 2013 Legislative Resources (Minnesota Revenue) • Taxes Administered by the Department of Revenue • Classification of Tax Data (Minnesota Revenue) • Tax Handbook (Minnesota Revenue) • Minnesota State and Local Tax System (Minnesota Revenue) • Law & Policy (Minnesota Revenue)

12. State Government Budget Minnesota Revenue Minnesota State Budget (Minnesota Management & Budget) Minnesota Budget Project FY 2014-15 Governor’s Budget Recommendations • Price of Government • Where the General Fund Dollars Come From Appropriations legislation Minnesota Legislature (MPR) Dayton announces bonding proposal (MPR News April 8, 2013) Dayton's budget proposal‎ (MinnPost)

14. http://www.mn2020hindsight.org/assets/uploads/article/MN_revenue.pnghttp://www.mn2020hindsight.org/assets/uploads/article/MN_revenue.png

15. Tax experts, economists say Dayton’s business sales tax is a bad idea (MinnPost Feb 18, 2013)

16. Regional Government Budget • Metropolitan Council - Budgets • 2013 Unified Operating Budget - Metropolitan Council

17. Local Government Budget • The basics of local government aid in Minnesota  (MPR 2010) • League of Minnesota Cities • Association of Minnesota Counties • Minnesota Association of Townships • State Aids (House Research Department) • A Brief History of Minnesota’s System of Local Government Finances: 1960-2011

18. Minnesota Office of the State Auditor Charged with overseeing more than $20 billion spent annually by local governments in Minnesota • audits local government financial statements • reviews documents, data, reports and complaints The financial information collected from local governments is analyzed and serves as the basis of statutory reports

19. Minnesota Property Tax Law Property Tax Statutes (Minnesota Statutes, 2013) Property Tax Refund Act (Minnesota Statutes c.290A) Metropolitan Revenue Distribution (Minnesota Statutes c.473F)

20. The Sources of State and Local Tax Revenues (Tax Foundation)

21. The Property Tax • Property Tax (Minnesota Revenue) • primarily administered by the county • Department of Revenue's Property Tax Division oversees counties to ensure proper administration of Minnesota's property tax laws • Property Tax Programsreduce property taxes for various types of property and owners • Property Tax Refund • Property Tax Reports & Data • Property Tax Statistics • State Aids and Credits

22. Certificate of Real Estate Value • A Certificate of Real Estate Value (CRV) is required to document a sale of property in Minnesota. • CRV information is reviewed by the county of sale and the Department of Revenue to verify sale terms and ensure fair and equitable property tax assessments statewide

23. Property taxes were the most prominent source of state and local tax revenues in fiscal year 2010 • This category includes both commercial and residential real estate in addition to personal property tax revenues obtained from taxes on cars, boats, etc. • Residential and commercial real estate are often a source of local tax revenue, while personal property taxes are often a source of state tax revenue

25. County • Hennepin County Budget 2014 $1.7 billion • Property taxes 37.3% • Federal revenue 9.9% • State revenue 12.2% • Fees 21.0% • Other 19.6% • Property taxes - Hennepin County • County government revenue (Association of Minnesota Counties)

30. City Minneapolis City Budget 2014 Budget Process Calendar • Property taxes 22.0% • Federal revenue 2.0% • State revenue 9.0% • Fees 34.0% • Other Property Taxes City of Minneapolis Assessor’s Office Minneapolis budget provides first property tax levy decline in 3 decades (Star Tribune 2013)

31. Property Taxes in Minnesota • Legal Topic: Property Taxes (Minnesota State Law Library) • Understanding Property Taxes (Minnesota Revenue) • Property Taxes Levied in Minnesota (Minnesota Revenue) • Property Taxes (Minnesota Statutes) • 2012 Property Tax Legislative Bulletin (Minnesota Revenue) • Property Taxes (House Research) • Property Tax Lookup

32. Minnesota's property taxes: where democracy gets personal and gritty (Minnpost Sept 9, 2010) • PoliGraph: Dayton property tax claims add up (MPR October 22, 2010) • Star Tribune <property taxes> 206 stories • MPR <property taxes> 2290 stories

33. Metropolitan Council • Metropolitan Council 2013 Unified Operating Budget • Minnesota statutes authorize the Council to levy taxes on all taxable property within the Council’s geographic jurisdiction to provide funds for specific purposes • The Council’s taxing area for all purposes, except transit debt, consists of the seven-county Twin Cities metropolitan area, minus those cities within the seven counties but outside the Council’s jurisdiction • The Council’s taxing area for transit debt includes the Transit Taxing District and the Cities of Columbus, Forest Lake, Maple Plain, Lakeville, Ramsey, and those communities receiving regular route-transit service • The total combined 2012, payable 2013, property tax levy for all Council purposes is $78,471,938, an increase of 2% or $1,538,665 from the 2011, payable 2012, lev.

34. Metropolitan Council • In 2010, 45% of the Council’s revenue came from user fees for wastewater treatment and transit services, and 41% from state and federal funds • About 10% percent of revenue came from a seven-county property tax, and 4% from other sources • The Council’s 2010 budget expenditures totaled $738.6 million • The operating budget of $519.4 million (70.3% of expenditures) covered daily expenses, mostly for regional transit service and wastewater treatment • Debt service (19.1%) covered payments on the Council’s long-term capital bonds and loans • Pass-through funds (10.6%) came primarily from federal sources (and some state funds) that the Council received and allocated to local governments, agencies and rental property owners for transportation, housing and other programs

35. Counties Hennepin County Property Tax Division Taxing District Information Understanding your Property Tax Ramsey County Tax and Property Information Dakota County Home & Property ​. A taxing district is an area that has the authority to tax residents in counties, cities, townships, school districts and special districts Special districts for Dakota County include the Metropolitan Council, the Mosquito Control District, Metropolitan Transit District and the Vermillion River Watershed District

36. Sample Property Tax Statement

37. Cities • Minnesota City Finances, 2009 Revenues, Expenditures, and Debt (State Auditor) • Minneapolis • Assessor’s Office • Introduction to Property Taxes • Overview of the Property Tax Process • St. Paul • Tax and Property Information • Property Tax Reports (League of Minnesota Cities)

38. Nonprofits • Taxpayers League of Minnesota • Tax Foundation – Minnesota • MN2020 Property Tax Report 2002-2010 (Minnesota 2020) • Minnesota Seasonal and Recreational Property Owners Coalition Inc. • Minnesota Land Economics (Steve Taff) • National Timber Tax Website Tax Management for Timber Owners - Minnesota

39. Tax Increment Financing • Tax Increment Financing (Minnesota Revenue) • Tax Increment Financing (Minneapolis) • Tax Increment Financing - City of Zimmerman • Tax Increment Financing and Affordable Housing in Minnesota

40. Minnesota's Green Acres Program - the Minnesota Agricultural Property Tax Law, allows eligible agricultural property to be taxed at a value less than its full market value • when the market value of agricultural property is influenced by other potential uses of the property, such as residential or retail development, or for recreational purposes, the assessor is required to value the property based only on its agricultural value Twin Cities Metropolitan Area Fiscal Disparities Program established in 1971, but court challenges prevented its implementation until 1975 - codified in Minnesota Statutes, chapter 473F • Jurisdictions shares 40% of the growth in the commercial-industrial (C/I) property tax base of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington counties

41. Financing Transportation in Minnesota

42. State Aid for Local Transportation