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the formula used to calculate aid for small cities, volatility in the. local government aid <br />distribution and the impact of including the unique needs of rapidly growing cities on the <br />LGA formula. Metro Cities supported the extension of the study group to December, 2012. <br />Metro Cities further supports having the study group consider the LGA program in the <br />context of the overall state and local fiscal relationship. <br />I -F State Property Tax Relief Programs <br />Metro Cities supports state funded property tax relief programs that are paid directly to <br />homestead property taxpayers such as the circuit breaker and enhanced targeting for <br />special circumstances. Metro Cities supports the update of the Department of Revenue's <br />"Voss" database to link income and property values, and the consideration of income <br />relative to property taxes paid in determining eligibility for state property tax relief <br />programs. <br />Metro Cities supports an analysis of the State's property tax relief programs to determine <br />their effectiveness and equity in providing property tax relief to individuals and families <br />across the state. <br />-G Market Value Homestead Credit <br />Metro Cities supports the Market Value Homestead Credit Program, a state.aid to individual <br />homestead property taxpayers, as a direct credit to the taxpayer, rather than a <br />reimbursement to Iocal units of government. The current MVHC reimbursement structure <br />undermines accountability in a number of ways, most directly by enabling the state to <br />reduce or even eliminate the reimbursement to local units of government while preserving <br />the benefit of the credit to the homeowner. <br />In response to the state's budget deficit, MVHC payments to local governments have been <br />continually reduced and unallotted, resulting in an unreliability in the reimbursement, and <br />a shift of the state's property tax relief program onto cities. Metro Cities opposes state <br />funding reductions to the current Market Value Homestead Credit Program for the purpose <br />of balancing state budget deficits, as these reductions shift the burden for funding a state <br />mandated program onto local governments. <br />If the state reduces funding for the program, there should be a corresponding reduction in <br />the credit received by the taxpayer. <br />I -H Property Valuation Limits /Limited Market Value <br />Metro Cities strongly opposes the use of artificial limits in valuing property at market for <br />taxation purposes, since such limitations shift tax burdens to other classes of property and <br />create disparities between properties of equal value. <br />2011 Legislative Policies 3 <br />