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City Assessor Keefe conceded that Minnesota does have high commercial taxes. However, <br />it is the State Legislature that determines the tax rate and that the State Legislators should be <br />notified by the people if they want a change. It is the commercial tax base that subsidizes <br />the agricultural and residential tax bases. In Ramsey, the City's portion of the tax share is <br />below average for both the metro and outstate areas. <br /> <br />Commissioner Fults cited a particular case in which the taxes in Ramsey were 25% to 75% <br />higher than in other cities in Anoka County. Commissioner Fults inquired if the City <br />Assessor had the authority to relieve the tax burden for the first year for new businesses. <br /> <br />Mr. Keefe stated that he did not have that authority, but there are state programs for tax <br />deferment. <br /> <br />Commissioner Fults said that it seems that tax laws are written solely for homesteads. <br />Business and industry have very little recourse for relief in unforeseen situations such as <br />stopped construction. Commissioner Fults also noted that Certificates of Real Estate Value <br />(CRV's) also reflect additional costs such as commissions, personal property and <br />concessions by the seller and asked if they are used by the assessor to help determine <br />market value. <br /> <br />Mr. Keefe said that he did use the CRV's, but that he verifies the details such as financing <br />and personal property, etc. <br /> <br />Commissioner Nelson asked how often properties are assessed. <br /> <br />Mr. Keefe answered that they are assessed each year, but they are only reinspected once <br />every four years. <br /> <br />Commissioner Nelson inquired as to what would happen if a property was sold for a great <br />deal more than it's actual worth, would the taxes be based on the sale price or the real <br />value? <br /> <br />Mr. Keefe stated that since the CRV's are verified, a sale amount grossly over the market <br />value would not be taken into consideration. <br /> <br />Commissioner Muller noted that non-homestead taxes are much higher and make it <br />unprofitable to own rental properties such as single-family dwellings. <br /> <br />Chairman Wagner thanked Mr. Keefe for his informative presentation. <br /> <br />STAFF INPUT <br /> <br />Mr. Gromberg distributed the Capital Improvement Program reading material to be <br />discussed at the January 1991 meeting of the Economic Development Commission. <br /> <br />COMMISSION INPUT <br /> <br />Commissioner Hardin wished the Economic Development Commission well and thanked <br />them for having been able to be a part of their efforts. <br /> <br />Commissioner Hardin informed the Economic Development Commission of the City <br />Council approval of the McKinley Street extension. <br /> <br />Economic Development Commission / December 12, 1990 <br /> Page 3 of 4 <br /> <br /> <br />