8. SR 04-25-1995 - Laserfiche WebLink

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:1 y y League of Minnesota Cities Cities Bulletin Number 15 ~~ April 14,1995 Senate approves Omnibus Tax Bill Gary Carlson After neazly six hours of debate and dozens of proposed amendments, the full Senate approved the Omnibus Tax bill on Wednesday, April 12. The bill includes a pro ems tax freeze and taz retie fo~abin properties. The Senate attached the tax bill [o H.F. 602, a technical corrections bill that had been on the Senate consent calendaz, and sent it back to the House of Representatives for consideration. Although the Senate discussed many amendments, only a few were actually added to the bill. The most notable amendments adopted include a limitation on the increase of parcel mazket values to the rate of inflation, an amendment to Qedicate the $91 million interest earnings to the school levy recognition shift, and a provision to provide property tax relief for cabin properties, and an amendment that would allow growing communities to generate additional levv based on new constr _cdon. The bill ultimately passed on a 44 to 17 vote. Senator Bill Belanger (IR- Bloomington) offered an amendment to repeal the property tax freeze. His amendment received considerable debate but was ultimately defeated on a 38 to 29 vote. Five DFL Senators voted to remove the freeze, including Senators Steve Kelly, Gene Merriam, Charlie Berg, Allan Spear and John Marty. The Senate took up the measure on Wednesday, less than 24 hours after the Senate Tax Committee completed work on the bill. The committee version of the bill contained few revolutionary features other than the property tax freeze. A proposal to increase the cigazette tax by 40 cents a pack and offset the revenue increase with a reduction in the medical provider tax used to finance the MnCARE program was ultimately pulled from the bill. That provision would have raised approximately $123 million in state tax revenue for the current biennium. The other highlight of the commit- tee hearing focused on the $91 million state forecast error that will make mote money available for the state.general fund. (See story page 7.) The Senate met the constitutional requirement that all tax and spending bills must originate in the House of Representatives 6y amending the Senate property tax provisions onto a technical cotections tax bill previously passed by the House. The House of Representatives is moving more methodically in the drafting of their tax bill. According to sources, the House will complete their tax bill on or around April 21. This schedule could allow conference committee negotiations on the two tax bills sometime during the last week of Aptii. Although the House doesn't have the freeze language in bill form yet, it still could be chilly for cities in 1996. ~ Page 3-Freeze talk Page Action Alert Cities aren't alone in criticizing Legislators will have to work the Senate property tax freeze fast to address workers' comp. proposal.