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<br /> <br /> <br /> <br />c. Tax rate certification <br /> <br />Minn. Stat S <br />204B.13S, subd. <br />S <br /> <br />A law passed in 1999 requires that all cities over 500 population and all <br />counties must pass a resolution if the levy for the subsequent year will result in a <br />tax rate increase. The provision is based on a Missouri law and was passed by <br />the Minnesota Legislature in response to concerns that cities and counties--were <br />claiming they were freezing taxes when, in fact, the levy was increasing but <br />being offset by tax base growth. <br /> <br />" <br /> <br />~ <br /> <br />Under the law, the county auditor is required to provide information to affected <br />cities and the county board that will allow the local government to calculate <br />what its tax rate would be in the coming year if the levy was held constant. <br />Essentially, a baseline 'tax rate is computed based on the prior year's levy and <br />.. the current year tax base. The county auditor is required to provide this <br />information by October I of each year. <br /> <br />A sample <br />resolution can be <br />found in <br />Appendix J <br /> <br />The city Council or county board must adopt a resolution at a public hearing if its <br />levy will result in an increase in the tax rate over the baseline tax rate. The <br />resolution must be filed with the county auditor by October 20 of each year. If a <br />city or county fails to file this resolution by October 20, the county auditor is <br />prohibited from spreading a levy that would result in a higher tax rate, unless the <br />increased rate is due to either a change in the general obligation debt levy or a <br />reduction in tax capacity due to a classification change, property exemption, <br />court judgment, or county error. The levy and tax rate are adjusted to exclude <br />levy for general obligation bonds and fiscal disparities, if applicable. <br /> <br />If a city files the resolution, it may still certify a final levy that results in a <br />constant or decreased tax rate. It may therefore be prudent to file the resolution <br />by the Octo bet 20 deadline if your preliminary levy would cause a tax rate <br />increase even if you plan to certify a lower final levy in December. <br /> <br /> <br />Selecting <br /> <br />20 <br /> <br />;!~ f 11;,1/ ~. (I,'f/ Ift..lkf) <br /> <br /> <br />