Agenda - Council - 09/08/1981 - Laserfiche WebLink

Home

I I I I I I I I STATE; OF MINNESOTA DEPARTMENT OF REVENUE CENTENNIAL OFFICE BUILDING SAINT P~UL, MINNESOTA 55145 re,oNe: (612) 296-2246 August 14, 1981 TO: CITIES OVER 2,500 POPULATION RE' PAYABLE 1982 LEVY LIMITATION, LOCAL GOVERNHENT AID CERTIFICATION, AND HOMESTEAD CREDIT RESTRICTION A new law passed during the 1981 Legislative Session affects the property tax levy for your city. The law states that the new levy limitation applies for one year only, taxes payable in 1982. Prior to this new law (extra Session Laws 1981, Chapter 1, Article V), the property tax levy of your city was limited by specific mill rate, per capita or dollar limitations. These limitations still appl~. The new law provides for an overall limitation which is in addition to these specific limitations. The property tax levy of your city for taxes payable in 1982 can not exceed its levy limitation determined under either basis. The levy is restricted by whichever limitation (specific or overall) is the lowest. One of the purposes of this letter is to explain the new overall levy limitation to you and to inform you of your city's overall limitation for taxes payable in 1982. Yourcity'soverall levy limitation is determined as follows. If your city had a payable 1981 levy to pay the principle and interest on bonded in- debtedness it is deducted from your city's total payable 1981 levy. (Your County Auditor has reported these amounts to the Department of Revenue as part of the 1981 Abstract of Tax Lists.,) If there was an increase in the number of home- steads in your city between 1980 and 1981, the payable 1981 total levy less any bonded indebtedness levy is increased by the percentage increase in the number of homesteads. If there was no increase in the number of homesteads or if there was a decrease, no adjustment is made. (The number of homesteads is also reported in the Abstract of Tax list.) The final step in determining the pay- able 1982 levy limitation for your city is to increase the amount determined above by 8%. Your city's levy limitation ifor taxes payable in 1982 is shown on llne 6 of the enclosed notice· This notice also shows the amounts used in arriving at the limitation. The new overall levy limitation law does provide that there can be levies for certai, purposes in addition to the amount of the overall levy limitation. These levies are called special levies. These special levies may be claimed on the enclosed Form 280-1981/1982 Special Levies Certifical;ion. Definitions and examples of these special levies and the procedures for completing the Form 280 are explained in the enclosed instructions. Also, if your c~ty's payable 1982 bonded in- debtedness levy is less than 108 percent of the payable 1981 bonded indebtedness levy, there is an adjustment that can be made which increases your city's levy . limitation. This is explained on pages 4 and 5 of the enclosed instructions and ~ certification for the adjustment is found on page 6 of the Form 280. AN EQUAL OPPORTUNITY EMPI'OYER (OVER)