Commentary; Posted: 4/20/05
ëTurbochargedí tax notification plan a bad idea
By Don Heinzman
An idea thatís an insult to local city and county elected officials and would be an obstacle to running good local government is surprisingly alive at this session of the Minnesota Legislature.
This gimmick is called Turbocharged Truth in Taxation, which would allow property owners to vote against an increase in their property taxes after the city council and county commissioners had determined the increase for needed services.
If 20 percent voted against the property tax increase, a special vote would be required to either accept or reject that increase. If the increase were voted down, the city or county would have to use the amount of property taxes used the year before.
Imagine what a mess this would cause to growing communities. If this were to become law, here would be the process. The staff would prepare a budget and certify property taxes needed by Sept. 15.
In November property owners would get two cards, one for the city taxes and one for the county taxes for in this case 2006. If property owners voted against the tax increase for one or the other or both, a special election on the property tax increase would have to be scheduled the second Tuesday in January.
If the property tax were defeated, the city or the county could only levy property taxes for the same amount as the year before. Mind you dealing with the results and having to trim the budget with old revenues would come in February, two months into the new budget year.
The Legislature, which has already reduced local government aid that is causing high property taxes, now wants to block new tax increases at the local level to provide needed services.
The cynics say give property owners a chance to vote against tax hikes and theyíll do it, not understanding the consequences.
Staffs and elected officials of cities and counties would have to campaign and explain the need for increasing property taxes for needed local services. Trying to explain city finances is tough, because financing government is complex.
The proposed bill would allow property owners only to vote on the cards, while having all citizens eligible to vote. As John Gunyou, Minnetonka City Manager, notes 20 percent of the voters would be able to override the 80 percent who didnít vote or were in favor of the increase.
Moreover, the special elections would cost money to conduct with funds coming from local dollars; one study says state-wide cost of these elections would be $2.9 million.
There is no need for this cumbersome voter satisfaction survey.
This is an affront to the many council members and county commissioners who are elected by the people to study the local needs and to determine the best way to fund needed dollars.
If people are dissatisfied with how their local council members and commissioners tax their property, they can vote them out.
The Turbocharged Truth in Taxation is a bad idea that should be scrapped in the interest of avoiding a complicated process that would mess up the logical financing of local services.
In the words of one official. ìGet rid of the cards.î
Forest Lake Times
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