Agenda - Council - 07/12/1994 - Laserfiche WebLink

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Homestead Classification The deadlineifor converting property to homestead status will be December 1. Currently, the deadline for [changing classification to homestead is June 1. Also, the law removes the requirement t~o file a homestead application every four years. Once a property is classified as homestead, it!will remain in that classification until sold or transferred. SALES TAX CHAI~, GES Certain local gov&rnment purchases are now exempt from the sales tax. These exemptions include: ° Purchase of'bulletproof vests, ° Repair an~l replacement parts for emergency vehicles and fire trucks, o Machiner~ and equipment used at a landfill for solid waste disposal, and o Chore and. homemaking services provided to the elderly and disabled. In addition, lease~ to local governments for public safety motor vehicles are now exempt from the sales tax if' the vehicle vould be exempt from the motor vehicle excise tax. BOARD OF GOVEI ',NMENT INNOVATION AND COOPERATION The tax bill create~ a board to provide grants and waivers to local governments to increase efficiency and reduce costs. Th~ law appropriates $1.2 million to the board for the next biennium. Grants from the board are targetcdi to: ° Models oriplans for innovative service budget management, ° Plans for intergovernmental cooperation, ° Design se4vice sharing programs, and ° Combinatipn/consolidation of two or more local governments. SALARY FREEZE ~ The Governor's p!oposal for a salary freeze did not become law. The compromise was a requirement that employee compensation be discussed at Truth in Taxation hearings. TRUTH IN TAXATION In prior years, stat~ law required cities to adopt a final property tax levy and budget at their initial Truth in Taxation hearin~ (or at a continuation hearing). Beginning in calendar year 1993, cities must adopt final amounts at a!"subsequent" hearing. Also, additional disclosures regarding compensation of city employees are required. -3-