HomeMy WebLinkAbout12.b.Truth & Taxation Compliance Update � , A� . � •
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T0: Mayor Itotce
Couiic�lme»ibe�s: Na�per
nxborotig}t
�Jr►ls4t
l+lippermanrt
I�ItOM; Stephan Jillc , Adml.n:tstr�tor/C:1c�rk
RI�: TrutlT in 7:'a�ltion I�e�;:i.,:,lata.a»/TtosemouiiL .I31id�;eG .Procc:;:;
Si.nce the Governor vetoeci the O�ai�.ibus `I'�►x 13:i.:1.1 c�f. 19�`3�3 t:i�� 1t)f38
law re�arding TruL-h i�i Taxation has becu in lilnbr�. xecic�3.reme��t3
regarding dates for spLtinF t.�x �l.ev:i.rs , holclin�, 1�ud�;c1: hc�►ri.�iF;:;
��id advertisin� for Ltiose were estai�listiecl iri t:l�r� 19�3t3 l�iw,
revised in 1989, then vetoect .
Tite .1988 law required c3.ties to adagl: l�ud�,et�, ho:t.d }ic�,�r�.�lgs ancl
set levies by Septemt�er 1. , 19$9, v�tr�:ually impvssible r_e���siderl.nc;
other state laws and rulea in place.
The 19£39 bil�. (vetoed) c�xtendeci tl�ose d:ites. Af-ter tlie vei:o t:l�e
State De�t, o£ Kevenue issuecl a 1et1:�r "su�p,est�in�" tlle ext:endect
tiine frame. I hacI held to tliat l�ecat�se L-1���4 dr_partmetit enfnrce:,
most if not a�.l regulation� re�tir. din�; levie9 , local p,c�vernmcrit
�iid etc. Mast c:itie.a, hut not a7.1, huve clone L-l�r ���me. '1.'he
I,eague oE Cit3.es renuested, ancl r. ec�ivecl , an Attori�ey G�nerals
opin:ton on thi� �znd it has t�e�ra i:�suect (attrxct�ect for yaur
reference) . The � canelus3vn is that the 1aCer ti�ne fran�e is w1iaL-.
w�ll be fol�.owect .
According to our scheclule :Cor t�ud�;et revi�w, i�efiratnf;r� and l:evy
setting , we will fa11 vex y we1:l in litie witlt �:lae aL•L-or�iey
�;ciieral' s o�inion.
This year a �ubticati.on o£ noi:iee for a {�uU.lic ti�aring �� ��;:��l�.�a.n
thr� budget pro�osed will Ue necessary prior to l�udgeC �iflop�i_c�r�
anct seL-t:i.n� of tlxe J.�vy . I wilt be f.oll.nwinf; ui�, .�tL- <1 laCcr
date, wa.th a scheelule for the c�nCire �roce�►s.
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_ - 183 University Ave.East AU G a� 196�
— St.Paui,MN 55101•2526 CLERK'S UFF�CE
League of Minnesota Cities (612)227,560(1(FAX:221-0986) CITY OF ROSEM4UNT
August 2, 1989
MEMORANDUM
TO: Mayors, Managers, Clerks and F'inance Offa.cers
FROM: Donald A. Slater, Executive Direct
RE: Attarney Genera2's Opinion on Truth in Taxatian Compiiance
The League received an opinion from the Minnesota Attorney
General's affice today asserting that the Commissa.oner of Revenue
has the authority and discretion to define "'substantiaZ compliance'�
with the truth in taxatian law. In the opinion of the Attorney
General, the Revenue Department has the authority to issue truth a.n
taxation standards that deviate from current truth in taxation law,
Minn. Stat. § 275.065 (1988j .
The Attorney General's opinion {attached) has made compliance with
the Revenue Department's June 23 standards --instead of current
Iaw-- a somewhat safer route for cities. In fact, the opinion
implies that to the extent a city deuiates from the statutory truth
in taxation provisions, failing �o at least meet Revenue Department
guidelines could resul.t in a Revenue Department determination that
th� city has "failed to substantially comply withg truth in
taxation provisions,
In light of the Attarney General's opinian, we recommend the
foilowing:
Cities com�lying with existinq law Cities that have chosen to
comply with ixe sting Iaw (including certification of a proposed
levy on August 1) may want to continue on the statutory truth in
taxation schedule, including recer�ification on August 15. This
continued compliance wou2d not generate additional costs and would
preserve a city's options in the case of a lawsuit or ather new
information. After August 15 and in the absence of a lawsuit or
other information, we suggest that eities change to using the
standards issued by the Revenue Department to avoid the expens� and
canfusion of holding duplicative public hearings and natices.
These standards require cities to certify a "proposed levy" an
October 1, and for budget hearings to be held during the month of
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Octobe� (rather than mit� ta late Se�temUer) , and require fin��l 3.cvy
� c�rtification by November 9.
Cities compl iY nq with Revenue_�artment s�andards. Th� �t�o�-a�ey
General 's opinion supports anc3 strenqthens the acti,ons taken by
citie:; who have chosen to comply with t,he st�nda2-cl a is^uef] I�y f�h�
Reven�ie Department on June 23 . The I,eaque woul.d aclvise cot�Li.xiue<i
compliance with these rec�ua.rements.
The Attorney Genera�.'s opinion, of course do�s not ruie out
taxpayer �.awsuits, no�- is a.t necessarily binding on the couri:�.
However, �ttarney General 's opinions are often viewed persu��sively
by the courts.
Tha.s advice is offered to cities bz�c.d on tl�e eurrent situati�n ant] ,
the probiems inherent with complying with the statutory trui:h in
taxati.on process. If the L�gislature is convened in a speci.al
session, it is passible that changes wou].d b� macle t�o existi.nc� law
at�d tt�e Revenue Department standarc]s, This cauld r.equire loc�l
governments to ce�mply with a revised process of administe.rinc� the
truth in taxation requirements.
If you have questions zbout wh�.ch rnute your city nc��txlcl t�ke in
camplying with truth in taxation, you may want to consul�. with ynur.
city attorney. If you have general �u�stians rey�rcia.ne� trutl� in
taxat.�on please ca11 the League to discuss your situation.
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l�TA'�'E O�' ��INNk:$�CYI'A
t!r►IGe �w twr ATTawNRv OR�Kww� IW(}f/Cb$II.LPL�' 7�'
gT. �At.'I. a816Q� A'!T'ORMYY OfNtIIAL$ 4TftU
Ht;8ER7 H. Hl'MPMRCX� UI 7'AR Wlit}ATiO� t�t�iS)Gh
�rroRr+rr c:r.►.Ex��. �e Mtv=rt ��►�tK ►t.au
lRA3L lS�7'tt'ft�� OIo�
�r. t�uL. �f� tei�.avu
?'�t.�NOV�► f!�!► !lf�1:t
Auqust 1� 1!8!
Mr. James J. Thomacn, Jz.
N�w Brighton City t►ttorney
LeF�v�re, Lefle�, x�prin�dy,
0'8 r i!n i A��►wx
2OQq !"irst 1�anR Tl�aa 1�e�t
Mi�neapolis, MN 53�02
t�adr Mr. Th4meon:
�� your ].�ttsr o! ltiiy 20, 1969, you saek our opinion
concern3nq inforreat�on �Rd +qaidelinss Nhich the Commi�siener of
Revenus has provlded cikl�• concerning the 'Truth iri Tax�tion"
Provirion� ot Minr►. Stat. � Z75.065 11988) .
Ae you obstrve !n youz 1�tter iE !e irnpo,�sibie to �amp2y
with the �trict letter o! the iaw providing #or �ar3cu�r lrteps in
the buQgetir�g/l�vy procesa. !`��lure to �omp�,Y �►itt� th�► Tr�+th i�
Taxatio� provlslons would, however, oub�eck the t�txihq Mutbority
to 1488 l�vy li�aits.
On June Z3� 1�84, tt�e Coauni+��ion�r o! tt�v�n�� rent a letter
to cities with infarsn�tion +an compilsne� kitfi •ictioh �73.06� in
view of thf Gover�or'�r v�tA o# the 1459 0►�niba• TaY �ili. The
Omnibus �ill would ��va t,��iedi�d m nun�ber of dtt�3G�lt3��• Milh
th� prraant law. Includ�d Kith khe l�ttar was • tit��tRb�e of
ef+����, Minn. � �t�t, f �'f$.���, •ubd. ' 7 �i9a8� prov�dest
�►t the time tb� taxinq tuthority c�rtifi�t it� tex
i�vy un8�r saction �75.03, it ehal� errtffy to the
camn�issfor�ar ot rav�nua �!s Cc�apl��nce Mikh �his
sertior�. shs c+rrtif�cation teutt �ont�►!n �opi�s o!
, the adverti�ament xequired �snder •ubQ��i�ion S,
the s4eoiutior+ advptiz�g the linai property t�x
levy �nder •ubQxvi�ion 6. •nd �ny other '
inlor�►atian rsguir�Q by lh�e oo�mi�r�ton�s o!
revanue. f h o�nmi a o �r st r� � s
tax n or t a� e o u
com w t � X r tp r1 tc M `
amrn ss o ex o �v • a ot
u . sn x n «tee un er •�e oa , 8
or a t�xing authori�y thak hw� not oamplied Kith
th ia •ect fan, ths� oovnty •t�Ql�lor a►�s� ure the
t►a-inert�as tax �at�+�,
�N �OUAL t�'PORTUNITY tN1l►LOYtA
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Mr. �amca J, Thomaon, �r.
Auguat 1 , 14Q9
�t��c 2
{�Emphaeia a�6dcQ. } It i� , 3n nux c�pinion► wf thih �h+e �ukho-r. l i:�► ��
th� Commitb�Ui'1e"L o� R�►venu� ta �rxex�i�� hi� d��cc+etian �t� tc, a+}�c,t
cnn�titut�e� "�ubet�nCtal cbmp�i�+npa" r�i�h the mruth in �'�+xati�an
provfito�e.
We have cUr��irm�c3 w�th �he pepAx�men� of R�venua th�t ir�
providinq the June a3 , 1��9 �.n�arm�tian to c�tf��c tf�n� thv
Commiseioner aaA �e�vi��in� '�h�m �n �t9vancrt sa �a e�txai: h� t�ouXc�, in
vi��w ct thQ �irc�met�nc�:e �romtad by v��o Qt the 1989 omnlDu�a a�;c
k3�11, deera "e��sb�t�ntl�tl �omp�ian��. "
Tn othor �ards , i� � �iky �o�� t�hat hc: h�►e �ur���a'��Q �nc�
adh�res to the timetabl� h� h�ts �e� out , It+� �+i1�. c+�rtit'y und�c
subdivS�ion 9 th�t th* cl.�y ia in oomplittr►ce xl.kh �l�� Txt�th in
Taxeti4n provlafon� �ven '�hc�ar�h the �ity ha� na�, �4x ��nmp1��
�txictly complled with �ubdiu�;�fon 1 af �a�cticn �7b .A6a wtaSoh
r�quire� � taxir�q �ukhori.�y �o �►ao�p� r� gxo�aatc� budget �nc�
G�xtiPy the grapaaed �ax can ar �!af.r�x� At���us�t 1. �in�+� �t�o
eammi�aior�ar xi.11 certi�y r�uUatc�n�i��. �a�glianao . �h� ci�y +�au1.0
not then b�e limS.tod tv 14�8 l�v� 1Sm�t�.
. It S.s Qux opilz�.on tM€�t *�s��� �hQ Cc�r�.mi����.Aner �o �4 �xer���►�
his discreti.on �nd �fnd sub�k�n�#al complience P�r tfica�� ci.ti��a
wh�:eh do taha� h� �ugg�$L� �ts�k t�+a 'idAtl�.t� i"10� bR �bu�f.ng hiA
diaer�tian. �tera t�� to r�o a�sc�,rci��� hi� di�c�stl.on, �ns h+� ti�+�
ir�dicat�ac� th�t he aec�u�.d, 9��er d�-cl,�ion, �» our opinion, aauicl 2�r
r�rtional and is►w�ux � anc� not �rbitr�ary oa �a��arioieu�.
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L�agu� of tdint�e�ot� Cil���
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Oear City Officfial :
I wfsh to extend to you a cordial invitatiQn to attend the league of Minnesota
Cities' Regional I►keting hosted by the City of White Bear Lake or� Monday,
September 11, 1989, at the White Bear Country Inn, 4940 Highway fil.
The afternoon program will begin at 2:30 P.M. with a demonstration af the new
accounting software package for smal] and medium sized cities developed by the
League of Minnesota Cities and the State Auditor's Office. At 3:15 P.M. we will '
open up the meeting for a discussion of risk management issues which cities face
today ranging from liabiTity associated with joint power agreements to sewer
backups.
A soeial hour is scheduled tQ begin at 5:00 P.M. and dinner will be served at
6:15 P.M. after dinner, the League wilt showease its new video, "Dealing with
the Media." This video is designed to help city officia}s 1earn haw to deal
positively with the media.
To complete the evening session, LMC staff will make presentations on the status
of any changes to Minnesota's property tax system, solid waste issues, the open
meeting law vs. the data practices law, and a short program entitled "Ten Things
Councilmembers Can do to Help Reduce City Liability." I am canfident you will
f�nd these sessions both en�oyabie and informative.
To make reservations for your city, please return the enclosed registration form
as soon as possible. In case of canceilations, please notify Joyce Jacobs at
429-8526 by Septe�ber 7, 1984. Your city will be billed for those who did nat
attend and did not cancel their reservation by the aforementioned date.
I look forward to seeing you on September llth.
R ��� ���� �incerely,
,
AU G 14 1989 a ry �-i�g `—�
GLERK'S fJFFICE ay°
J� �CITY QF ROSEMOUNT
Enclosures (registration form, map and agenda)
47Q1 Highway 61 * White Bear Lake, Minnesot� 5,11p • Phone (612) �29-€3526
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183 Univergity Ave.East
3t.Paul,MN 55101•2526
League of Minnesota Cities (61�)�7-�O tFAX:221-0886)
League of Minnesota Citiea
White eear Lake Regional Meeting Program
Monday, September il, 1989
Afternoon Session -- 2:30 - 4 •45 pm
2:30 - 3 : 15 pm Demonstration of the new accaunting software
package for cities
3: 15 - 5:00 pm Risk Management Issues -- LMCIT staff will present
a variety of risk management issues. Topics will
include liability and cav�rage aspects of
contracts, �oir�t powers agreem�nts, perqnits and
licenses; defense and indemnification provisions in
contracts; certificates of in�urance (how much
insur�nce shauld a city requirej , and
intergovernmental contracts for streets,
intersections, etc. Liability considerations far
optional city seruices such as tree cutting,
building demoiitian and pfpe thawing.
LMCIT staff will also discuss th� rising problem of
sewer backups, liability issues, and should
coverage be offered for backups.
Eveninq Sessi�n -- 5:00 - 9;OO.pm .
5:00 - 6: 15 pm Soaial Hour
6:15 - 7: 15 pm Dinner
7:15 - 7:30 pm Welcome by Host City
LMC President's Remarks
7:30 - 8:00 pm Property Tax Issues -- Governar's property tax
proposal plus an update on truth in taxation
$�Q� ' g. 15 Pm Solid Waste Issues -- Select Committee on Recycling
and the Environment (SC�RE) leqislation, sales
tax on garbage collection services, and plasties
ordinances
8: 15 - 8:30 pm Data Practices/Open Meeting Law -- Public meetings,
an ogen or shut case?
8; 30 - 8:45 pm Seven Things Couneilmembers Can do to Help Reduce
City Liability
8:45 - 9z04 pm Dealing with the News Media, a video presentation
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Date: August 14, 1989
To: Metro Area Cities �
From: City of White Bear Lake
Subject: Minnesota league of Cities Regional Meeting
Sept+ea�ber 11, i489
The notice and registration form for the league's Regional meeting to be held
in White Bear Lake on September 11, 1989, did not include the registration fee
• of �•16.0� �e�r pret�son: i`he' fee wi 11 cover al l expenses of the afternoon
refreshments, dinner, tax and gratuity. A cash bar will be availab1e for the
social haur.
. . ,�.. a.w...._ . .. � . . . � . . . � . . . .
Enciosed is a revised registration form for use by yuur city. Please make ,
reservations as soon as possib}e.
�S/J�l]
1� ECEIVECa
AUG � 51�89
CLERK'� C�h��ICE
CiTY OF ROSEMOUtVT
4701 Highway �i1 • White Bear t�ke, Minnesot� 55t 10 * Phone (612) 429-$526
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