Agenda - Planning Commission - 07/01/2004

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Country Joe, Inc., et al., Respondents, vs. City of Eagan, petitioner, Appellant. C8-95-228... Page 6 of 7 regulatory process"); Hillis Homes, 97 Wash. at 808, 650 P.2d at 194-95 (holding that park assessments, "although characterized by the Counties as fees * * * are taxes, rather than fees" because the ordinances were designed to raise revenue); Idaho Bldg. Contractors, 126 Idaho at 743,890 P.2d at 329 (concluding that development impact fee not limited geographically or to improvements to be used solely by those creating the new developments was a tax and not a fee); WieIepski, 98 Md. App. at 730, 635 A.2d at 47-48 (taking judicial notice of the fact that "improvements to public roads benefit the public in general, not only the bordering property owners" in concluding that fee was an illegal tax). The taxing authority afforded municipalities under state law is delineated in Minn. Stat. §412.251. Although Minn. Stat. § 412.251 specifies that municipalities are authorized to levy taxes for such far- reaching purposes as "provid[ing] musical entertainment to the public," "for band purposes," and "for the support of a municipal forest," we conclude there is nothing in the statute suggesting the authority to impose anything similar to a road unit connection charge. See Minn. Stat, § 412.251. Although paragraph 11 of Minn. Stat. § 412.251 operates as a catch-all provision, recognizing a city's authority to impose "other special taxes authorized by law," we conclude on the basis of our preceding analysis that the road unit connection charge is not so "authorized by law." Minn. Stat. § 412.251(11). Accordingly, we conclude that the road unit connection charge cannot find validity under the city's power of taxation. [7] AFFIRMED. Footnotes [1] The resolution resolved in part: 3. That the following unit connection charges be required to be paid at the time of acquisition of future building permits in the City: a. For single family, double bungalow and townhouse residential building units - $75 per unit. b. For multiple family residential units - 80% of the normal residential unit'connection charge. c. For commercial and industrial building permits - amount determined on an acreage basis or portion thereof with three residential units per acre and a minimum of one residential equivalent unit connection charge. [2] The city's Finance Director testified that road unit connection charges collected are commihgled with the city's "ad valorem tax levy, some special assessment collections, interest earnings" and other miscellaneous revenue sources in the Major Street Fund. [3] As an initial matter, Tidewater did not involve road impact fees of the type enacted by the City of Eagan, which coincidentally were specifically provided for under Virginia law. 241 Va. at 118,400 S.E.2d at 526. [4] ,See ,~lun! Hack Ridge Estates, Inc. v. Planning Comm'n of DanbUry, 160 Conn. 109,273 A.2d 880 (1970); Idaho Bldg. C'onlractors Ass'n v. City of Coeur D'Alene, 126 Idaho 740, 890 P.2d 326 (1995); ~e://C:\D~cuments%2~and%2~Settings\ageis~er.RAMSEY~L~ca~%2~Settings\Temp~rary... 6/25/2004