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Truth in taxation flier starts a war of words about 'truth' By Anthony Lonetree Star Tribune StaffWriter Truth in Taxation notices hit mail- boxes statewide beginning next week, painting worst-case scenarios for what homeowners could pay in prop- erty taxes in 2004. The final bill for city, county and school services must still be approved by each governmental unit in Decem- ber, but the preliminary notices are drawing unusual attention in this year of budget bloodletting. The Minnesota Chapter of the Na- tional Association of Industrial and Office Properties is spending $50,000 on a public education campaign that includes distribution of 200,000 copies of a four-page flier that fingers local government as the main culprit for the sharp property tax increases many communities are projecting for 2004: The flier, drawing information from the Minnesota Taxpayers Associ- ation's publication, "Understanding Your Property Taxes," offers a detailed dissection of the Truth in Taxation no- tices. TAXES continues on A6: -- State legislator wants notices deliv- ered before each fall's election. Page A6 · Star Tribune * Monday, November 3 · 2003 TAXES from A1 House researchers predict 10.9 % increase on average The flier employs a retro look, with orange colors and bold headlines. "The state leg- islature designed the property tax system, but it's your local government officials who de- cide how much you must pay!" shouts one heading. The flashy piece was panned Friday by League of percent statewide. Sbme cities, counties and schools have made preliminary moves to raise taxes by double- digit percentages, but Carlson, of the League of Minnesota Cit- ies, said there had been little in the way of street-level talk about taxes, a situation he said could change with next week's Tax truths By early November, Minnesota property owners should receive Truth in Taxation notices outlining their proposed 2004 taxes and how taxpayers can participate in local government deliberations on taxes and spending. Here's a guide to the information contained in the statements. Minnesota Cities officials. What the flier "casually ig- nores,'' said Gary Carlson, the league's legislative director, is the fact that the Legislature and Gov. Tim Pawlenty cut $170 million in state aid to cit- ies. "It's a disservice," he said. Trouble ahead For about 20 years, counties have been required to calculate delivery of tax notices. Kaye Rakow, state public policy director for the Industri- al and Offices Properties group, hopes so. She acknowl- edged there have been aid cuts but said that the tax changes enacted by the 2001 Legislature made clear through the state's takeover of much of basic-edu- cation funding that local prop- erty taxes were just that local. "You have to go there for the Basic information about pro~rty tax system and the proposed property taxes described below. Your Proposed Property Tax for 2004 potential tax bills for each par- cel within their jurisdiction. The projections are based in part on the proposed "maxi- mum" levies set by cities, counties and school districts, numbers that often are low- ered when the bodies take final action on tax plans in Decem- ber. The tax notices also specify dates for each government en- tity's troth in taxation hearing, but rarely have those events generated much excitement. This year, with the state Legislature slashing budgets and shifting the costs of some programs to local govern- ments, property owners have been put on notice that a healthy chunk of the revenue- raising side of budget-balanc- ing will fall to them. The Minnesota House's nonpartisan research depart- ment estimated this summer that property taxes next year would rise an average of 10.9 Property lOCation ....... and owners responsible for making the tax payment. place to start," she said. ~~"x ~,~ 1,104.114 In past years, the prelimi- nary tax statements were re- quired to include two columns ng o mucho a opo ed I t~ ~crease ~ or decrease -- was due to loc~ government I ~ spending and how much re- ~l~,on of tax ~ s~ted &om cuts ~ state ~d or payments among ~ o~er factors, jur sd ct ons. ~ The req~ement, however, II ~~g~_ .. was removed q~edy ~is ye~ "T~s wo~d have been ~e ~ I~~~ year" for that kind of detail, C~ison s~d. me and place where hear ngs on 2004 proposed k [ ~ffi ~ ~ I .; .... But Ron Abrms, R-M~ne- ~ili ~e-~l~:-' . ~ ~ ~ mom ~mormm~on: prope~ taxes will be held to~a, ch~rm~ of ~e M~e- ,~ wnere to call for more sota House T~ Committee, information about your I fore each fall's general election. More citizens need to get in- volved in the tax debate, said Rep. Paul Marquart, DFL-Dil- worth. His initiative to move proposed tax bill. and a host of background play- ers, from Carlson to Lynn Reed, executive director of the Min- nesota Taxpayers Association, said there was a logical reason for the move: Counties always had trouble with the calcula- tions. zenry. Its Troth in Taxation notice will include a link to a Web page answering key property- tax questions, said Chris Samu- Source: Minnesota Taxpayers Association Next year a state legislator plans to renew his push for leg- islation requiting the tax-warn- ing notices to be delivered be- -- Market value of the property for the previous and current tax years. It is too late to challenge these values, which are determined by the county assessor and used to calculate the proposed tax bill. up the tax-notice calendar did not survive House-Senate ne- gotiations this year. For Ramsey County, the fo- cus now is to educate the citi- el, manager of local govern- ment policy and research. The site's not up yet, but the questions have a familiar ring. "Why are notices sent out $ 1,212.60 6t8,00 Proposed tax and previous year tax 'for all local governments, plus a calculation of the percent change for the property's total proposed tax compared to last year. What's missing? Until this year, statements also included two middle columns seeking to show how much of any tax increase or decrease was due to changes in local- government spending and how much was due to changes in the propero/s market value, changes in state aid and other factors. The state Legislature voted this year to no longer require that information. Mark Boswell/Star Tribune after elections?" says one. "What happened to the two columns?" reads another. To read the Industrial and OjJgt. e Properties group flier online, go to http://unvw, naiopmn, org/ Anthony Lonetree is at alonetree@startribune, com.