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MINNESOTA ASSOCIATION /'. f,r, ,',, ' <br />OF ¢..". ,'.'ut, IL.'81 <br />COMMERCE AND INDUSTRY [~ <br /> <br /> Mr. Charles B. Soderholm, Sr. <br /> Soderholm and Associates, Inc. <br /> 7150 143rd Avenue N. W. <br /> P. O. Box C-10 <br /> ~oka, Minnesota 55303 <br /> <br /> Dear Mr. Soderholm: · <br /> <br /> MACI does not support higher local property taxes on commercial-industrial <br /> prope~]---~nnesota's.real property taxes are among the highest if not <br /> the highest on business property nationwide. Minnesota's property taxes <br /> '~-~ among the lowest on lower valued homesteads and farms. Our position <br /> calls for stabilization of this system which has in the past forced relative- <br /> ly larger levies on business properties by lowering the classification <br /> ratios of homesteads and farms. <br /> <br /> Objective analysis of the budget situation shows that, unless the economy <br /> improves dramatically soon, the state budget shortfall will exceed $1 billion.' <br /> We could abolish all of state government, and solve only half the problem <br /> ($500 million wort~. ' <br /> <br /> 74% of state revenues go back.!to townships, cities, counties and school <br /> districts. Reductions in these aids are necessary to balance the state <br /> budget, unless we are willing!itu accept substantial increases in sales tax <br /> rates and the and and individual tax rates. <br /> corp°r~te <br /> base <br /> income <br /> <br /> · he situation is so serious that no tolerable solution is possible. Sub- <br /> stantial budget cuts will be required at local levels as well as the state · <br /> government programs. Unfortunately, we are six months into a twenty-four <br /> month budget cycle. Local and state contracts are in force, pension contri- <br /> butions apparently ~annot be delayed (by federal law). <br /> <br /> MACI will support no increases in state taxes or rates, but we have indi- <br /> cated that a local option sales tax should be considered as replacement <br /> revenue for the inevitable relative increases in local property taxes, if <br /> accompanied by re-enactment of local expenditure controls. And, the local <br /> property tax on business cannot be increased. <br /> <br /> I have enclosed our "draft" 1982 policy positions, which are subject to change. <br /> Also enclosed is a summary of significant business tax changes from 1967 <br /> to 1981. <br /> <br /> Mark S. Anderson <br /> Vice President <br /> <br />200 HANOVER BUILDING <br />480 CEDAR STREET <br />SAINT PAUL, MINNNESOTA 5510'1 <br />(6121 292.4650 <br /> <br />MARK S. ANDERSON <br />292-4658 <br /> <br /> <br />