Agenda - Council - 01/24/2017 - Laserfiche WebLink

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Municipal Revenue & Taxation and aids to local governments that result in local governments bearing more responsibility for the costs of services that belong to the state. 1-U Taxation of Electronic Commerce Metro Cities supports efforts to develop a streamlined sales and use tax system to simplify sales and use tax collection and administration by retailers and states. Metro Cities supports policies that encourage remote retailers to collect and remit state sales taxes in states that are complying with the Streamlined Sales and Use Tax Agreement. Metro Cities opposes legislation that allows accommodation intermediaries such as online travel companies a tax exemption that terminates obligations to pay hotel taxes to state and local governments, or otherwise restricts legal actions by states and localities. In 2011 the Legislature clarified that these services are subject to state sales tax. Metro Cities supports additional statutory changes to further clarify that all lodging taxes,whether administered by the state or locally, apply to total charges, including charges for services provided by accommodation intermediaries. 1-V Payments for Services to Tax Exempt Property Metro Cities supports city authority to collect payments from tax exempt property owners to cover the costs of services to those entities, similar to statutory authority for special assessments. Metro Cities opposes legislation that would exempt non- profit entities from paying user fees and service charges. 1-W Proceeds from Tax Forfeited Property Metro Cities supports changes to state laws governing the proceeds for tax forfeited properties. Currently, counties are allowed to recover administrative costs related to a property before other allocations are made and the law allows for the county to recoup a percentage of assessment costs once administrative costs are allocated. The result is often no allocation or a very low allocation, and usually insufficient level of proceeds available for covering special assessments, unpaid taxes and fees to cities. State processes addressing tax-forfeited properties can have implications for local land use plans and requirements and can result in unexpected and significant fiscal impacts on local communities. The current process also does not require the repayment of unpaid utility charges, or building and development fees. Metro Cities supports statutory changes that balance repayment of unpaid taxes and assessments, utility charges and other fees and that more equitably allocates the distribution of proceeds between counties and cities. 2017 Legislative Policies 9