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Property Tax Relief and Local Sales Tax Division

12th MEETING

2007-2008 Regular Session - March 16, 2007

STATE OF MINNESOTA 12th MEETING
HOUSE OF REPRESENTATIVES EIGHTY-FIFTH SESSION

PROPERTY TAX RELIEF AND LOCAL SALES TAX DIVISION

MINUTES


Representative Paul Marquart, Chair of the Committee, called the meeting to order at 8:03 A.M. on Friday March 16, 2007, in Room 10 of the State Office Building.

Committee Legislative Assistant Paul Cumings noted the roll.

Members present:

MARQUART, Paul (Chair)
BROWN, Robin (Vice-Chair)
ANDERSON, Sarah
DEMMER, Randy
DITTRICH, Denise
ERHARDT, Ron
LANNING, Morrie
LENCZEWSKI, Ann
LOEFFLER, Diane
MULLERY, Joe
PAYMAR, Michael

Representative Marquart asked for general testimony about Local Government Aid in Minnesota. Joe Mathews, Policy Analyst for the Association of Minnesota Counties, testified that County Program Aid is an important piece of the local partnership. Gary Carlson, Lobbyist for the League of Minnesota Cities, testified in support of Local Government Aid yet gave some specific recommendations of how the formula could be increased.


HF1518 (Brown) Local government aid programs and appropriations modified, and school finance equalizing factors indexed.

Representative Brown testified on behalf of the bill. H. Dan Ness, Mayor of Alexandria, spoke in favor of the bill. Steve Peterson, Policy Analyst for the Coalition of Greater Minnesota Cities, spoke in favor of the bill. Keith Carlson, Executive Director of the Minnesota Inter-County Association, testified that he was concerned the disparity between local government aid and county program aid that is outlined in the bill.

Representative Marquart, Chair of the Division, thanked the testifiers and asked that this bill be revisited later in the hearing when a quorum is present.


HF1534 (Hilstrom) Local government aid distribution modified, and appropriation increased.

Representative Hilstrom testified on behalf of the bill. Louis Jambois, Executive Director of the Association of Metropolitan Cities, testified in favor of the bill.

A quorum was present at 8:22 A.M.

Representative Dittrich moved that HF1534 be heard and laid over for possible inclusion in the Property Tax and Local Sales Tax Division Report.

Representative Dittrich moved that the author's amendment labeled 1534A1 be adopted. THE MOTION PREVAILED. THE AMENDMENT WAS ADOPTED.

Representative Marquart, Chair of the Division, laid over HF1534 for possible inclusion in the Property Tax and Local Sales Tax Division Report.


HF1518 (Brown) (REVISITED) Local government aid programs and appropriations modified, and school finance equalizing factors indexed.

Because a quorum was now present, Representative Brown moved that HF1518 be laid over for possible inclusion in the Property Tax and Local Sales Tax Division Report.

Representative Marquart, Chair of the Division, laid over HF1518 for possible inclusion in the Property Tax and Local Sales Tax Division Report.


HF1115 (Norton) Local government aid distribution mechanism amended to decrease volatility.

Representative Dittrich moved that HF1115 be heard and laid over for possible inclusion in the Property Tax and Local Sales Tax Division Report.

Representative Norton testified on behalf of the bill. Eric Willette, Manager of Policy Analysis for the League of Minnesota Cities, testified in favor of the bill.

Representative Marquart, Chair of the Division, laid over HF1115 for possible inclusion in the Property Tax and Local Sales Tax Division Report.


HF1381 (Atkins) Local government aid inflation adjustment provided.

Representative Dittrich moved that HF1381 be heard and laid over for possible inclusion in the Property Tax and Local Sales Tax Division Report.

Representative Atkins testified on behalf of the bill.

Representative Marquart, Chair of the Division, laid over HF1381 for possible inclusion in the Property Tax and Local Sales Tax Division Report.


HF346 (Severson) City aid local government aid base increased for certain cities.

Representative S.Anderson moved that HF346 be heard and laid over for possible inclusion in the Property Tax and Local Sales Tax Division Report.

Representative Severson testified on behalf of the bill. Tim O'Driscoll, Mayor of the City of Sartell testified in favor of the bill. Shaunna Peterson, City Administrator for the City of Waite Park, testified in favor of the bill. Ross Olson, City Administrator of the City of Sauk Rapids, testified in favor of the bill.

Representative Marquart, Chair of the Division, laid over HF346 for possible inclusion in the Property Tax and Local Sales Tax Division Report.


HF1746 (Gottwalt) Local government aid city aid base increased for specified cities.

Representative Lanning moved that HF1746 be heard and laid over for possible inclusion in the Property Tax and Local Sales Tax Division Report.

Representative Lanning moved that the author’s amendment labeled 1746A1 be adopted. THE MOTION PREVAILED. THE AMENDMENT WAS ADOPTED.

Representative Gottwalt testified on behalf of the bill. Brian Herberg, Mayor for the City of Rockville, testified in favor of the bill. Rena Weber, City Administrator for the City of Rockville, testified in favor of the bill.

Representative Marquart, Chair of the Division, laid over HF1746 for possible inclusion in the Property Tax and Local Sales Tax Division Report.


HF1881 (Bigham) Local government aid city base adjustment modified for certain cities has been added to the agenda.

Representative Loeffler moved that HF1881 be heard and laid over for possible inclusion in the Property Tax and Local Sales Tax Division Report.

Representative Bigham testified on behalf of the bill. Larry Bodahl, City Administrator for the City of Newport, testified in favor of the bill. Barb Wilcziek, City Council Member for the City of Newport, testified in favor of the bill.

Representative Marquart, Chair of the Division, laid over HF1881 for possible inclusion in the Property Tax and Local Sales Tax Division Report.


HF1774 (Kalin) Local government aid payable to a specified city increased.

Representative Dittrich moved that HF1774 be heard and laid over for possible inclusion in the Property Tax and Local Sales Tax Division Report.

Representative Kalin testified on behalf of the bill. Mike Buchite, Mayor of the City of Taylors Falls, testified in favor of the bill.

Representative Marquart, Chair of the Division, laid over HF1774 for possible inclusion in the Property Tax and Local Sales Tax Division Report.


HF1933 (Marquart) Local government aid distribution formula modified has been added.

Representative Marquart moved that HF1933 be heard and laid over for possible inclusion in the Property Tax and Local Sales Tax Division Report.

Representative Marquart moved that the author’s amendment labeled 1933A1 be adopted. THE MOTION PREVAILED. THE AMENDMENT WAS ADOPTED.

Representative Marquart testified on behalf of the bill.

Representative Brown, Vice-Chair of the Division, laid over HF1933 for possible inclusion in the Property Tax and Local Sales Tax Division Report.


The Property Tax Relief and Local Sales Tax Division was recessed at 9:31 A.M by Representative Brown, Vice-Chair of the Committee. She announced that the division will re-convene at 12PM in room 400 North of the State Office Building.


The Property Tax Relief and Local Sales Tax Division was reconvened at 12:02 P.M. in room 400 North of the State Office Building by Representative Brown, Vice-Chair of the Committee.


HF1372 (Ward) Homeowners' property tax refunds maximum amount increased.

Representative Brown moved that HF1372 be heard and laid over for possible inclusion in the Property Tax and Local Sales Tax Division Report.

Representative Ward testified on behalf of the bill.

Representative Brown, Vice-Chair of the Division, laid over HF1372 for possible inclusion in the Property Tax and Local Sales Tax Division Report.


HF390 (Rukavina) Disabled veteran or surviving spouse homestead property tax exemption provided.

Representative Brown moved that HF390 be heard and laid over for possible inclusion in the Property Tax and Local Sales Tax Division Report.

Representative Rukavina testified on behalf of the bill.

Representative Brown, Vice-Chair of the Division, laid over HF390 for possible inclusion in the Property Tax and Local Sales Tax Division Report.


HF2108 (Dettmer) Payment in lieu of taxes; allowing a town that incorporates into a city to continue receiving certain payments.

Representative Loeffler moved that HF2108 be heard and laid over for possible inclusion in the Property Tax and Local Sales Tax Division Report.

Representative Brown moved that the author’s amendment labeled 2108A1 be adopted. THE MOTION PREVAILED. THE AMENDMENT WAS ADOPTED.

Representative Dettmer testified on behalf of the bill. Bob Meyers, Assistant Commissioner for the Minnesota Department of Revenue, testified in favor of the bill and amendment. Mel Mettler, Mayor of the City of Columbus, testified in favor of the bill. Rhonda Sivarajan, Anoka County Commissioner, testified in favor of the bill.

Representative Brown, Vice-Chair of the Division, laid over HF2108 for possible inclusion in the Property Tax and Local Sales Tax Division Report.


Representative Paul Marquart assumed the chair at 12:20 PM


HF54 (Mullery) City aid base additions provided for certain cities, city aid appropriation limit increased, and aid required to be used for certain purposes.

Representative Mullery moved that HF54 be heard and laid over for possible inclusion in the Property Tax and Local Sales Tax Division Report.

Representative Mullery moved that the author’s amendment labeled H0054DE1 be adopted. THE MOTION PREVAILED. THE AMENDMENT WAS ADOPTED.

Representative Mullery testified on behalf of the bill.

Representative Marquart, Chair of the Division, laid over HF54 for possible inclusion in the Property Tax and Local Sales Tax Division Report.


HF2096 (Eastlund) Providing a valuation exclusion for homesteads of certain disabled military veterans.

Representative Demmer moved that HF2096 be heard and laid over for possible inclusion in the Property Tax and Local Sales Tax Division Report.

Representative Eastlund testified on behalf of the bill. Tim O’Conner, State Adjutant for the Minnesota Department of Veterans Affairs, testified in favor of the bill.

Representative Marquart, Chair of the Division, laid over HF2096 for possible inclusion in the Property Tax and Local Sales Tax Division Report.


HF1632 (Tillberry) Homeowners property tax refunds increased, and household income modified for persons age 65 or older.

Representative Demmer moved that HF1632 be heard and laid over for possible inclusion in the Property Tax and Local Sales Tax Division Report.

Representative Tilberry testified on behalf of the bill.

Representative Marquart, Chair of the Division, laid over HF1632 for possible inclusion in the Property Tax and Local Sales Tax Division Report.


HF1648 (Gottwalt) Senior citizen's property tax deferral program modified.

Representative Gottwalt moved that HF1648 be heard and laid over for possible inclusion in the Property Tax and Local Sales Tax Division Report.

Representative Gottwalt testified on behalf of the bill.

Representative Marquart, Chair of the Division, laid over HF1648 for possible inclusion in the Property Tax and Local Sales Tax Division Report.


HF2150 (Hilstrom) Low-income rental housing required to participate in the crime free multi-housing program to receive a reduced property tax class rate.

Representative Loeffler moved that HF2150 be heard and laid over for possible inclusion in the Property Tax and Local Sales Tax Division Report.

Representative Hilstrom testified on behalf of the bill. Curt Boganey, City Administrator for the City of Brooklyn Center, testified in favor of the bill. Kevin Benner, Lieutenant from the Brooklyn Center Police Department, testified in favor of bill. Jim Caauwe, Police Officer in the Blooming ton Police Department, spoke in favor of the bill. Janna Vukelich testified in opposition to the bill. Jack Horner from the Minnesota Multi-Housing Association testified in opposition to the bill as it is currently written. Julian Lascalzo, Lobbyist on behalf of the Minnesota Housing Partnership, testified with his concerns about the bill.

Representative Marquart, Chair of the Division, laid over HF2150 for possible inclusion in the Property Tax and Local Sales Tax Division Report.


HF1260 (Severson) Taxable market value increase prohibited for homesteads owned by persons at least 65 years of age and within certain income limits.

Representative Severson moved that HF1260 be heard and laid over for possible inclusion in the Property Tax and Local Sales Tax Division Report.

Representative Severson testified on behalf of the bill. Tom May, Hennepin County Assessor and representative of the Minnesota Association of Assessing Officers, testified in opposition to the bill.

Representative Marquart, Chair of the Division, laid over HF1260 for possible inclusion in the Property Tax and Local Sales Tax Division Report.


Representative Lenczewski moved approval of the minutes for Wednesday, March 14, 2007. THE MOTION PREVAILED.



HF142 (Wardlow) Property tax refund household income definition modified to exempt the amount of any military disability pay received by a veteran from the federal government.

Representative Demmer moved that HF142 be heard and laid over for possible inclusion in the Property Tax and Local Sales Tax Division Report.

Representative Wardlow testified on behalf of the bill.

Representative Marquart, Chair of the Division, laid over HF142 for possible inclusion in the Property Tax and Local Sales Tax Division Report.



HF2052 (Atkins) Seasonal recreational property tax refund provided.

Representative Lenczewski moved that HF2052 be heard and laid over for possible inclusion in the Property Tax and Local Sales Tax Division Report.

Representative Atkins testified on behalf of the bill. Jeff Forester, Executive Director of the Minnesota Seasonal Recreational Property Owners, testified in favor of the bill.

Representative Marquart, Chair of the Division, laid over HF2052 for possible inclusion in the Property Tax and Local Sales Tax Division Report.


HF1234 (S. Anderson) Supplemental refund provided under the additional property tax refund program.

Representative S. Anderson moved that HF1234 be heard and laid over for possible inclusion in the Property Tax and Local Sales Tax Division Report.

Representative S. Anderson testified on behalf of the bill.

Representative Marquart, Chair of the Division, laid over HF1234 for possible inclusion in the Property Tax and Local Sales Tax Division Report.


HF1924 (Lenczewski) Metropolitan fiscal disparities program study required, and money appropriated.

Representative Lenczewski moved that HF1924 be heard and laid over for possible inclusion in the Property Tax and Local Sales Tax Division Report.

Representative Lenczewski testified on behalf of the bill.

Representative Marquart, Chair of the Division, laid over HF1924 for possible inclusion in the Property Tax and Local Sales Tax Division Report.


HF61 (Sviggum) Property tax rebate provided, and money appropriated.

Representative Lanning moved that HF61 be heard and laid over for possible inclusion in the Property Tax and Local Sales Tax Division Report.

Representative Sviggum testified on behalf of the bill. Cindy Geis, Scott County Assessor, testified in opposition to the bill.

Representative Marquart, Chair of the Division, laid over HF61 for possible inclusion in the Property Tax and Local Sales Tax Division Report.


HF2122 (Brod) Property tax refunds; removing the maximum from the homeowner refund; implementing an income phase out for the special refund

Representative Lanning moved that HF2122 be heard and laid over for possible inclusion in the Property Tax and Local Sales Tax Division Report.

Representative Lanning moved that the author’s amendment labeled H2122A1 be adopted. THE MOTION PREVAILED. THE AMENDMENT WAS ADOPTED.

Representative Brod testified on behalf of the bill. Bob DeBoer, Director of Policy Development for the Citizen’s League, testified in favor of the bill.

Representative Marquart, Chair of the Division, laid over HF2122 for possible inclusion in the Property Tax and Local Sales Tax Division Report.



HF777 (Lesch) A bill for an act relating to taxation; property; providing a housing opportunity area tax abatement program.

Representative Lenczewski moved that HF777 be heard and laid over for possible inclusion in the Property Tax and Local Sales Tax Division Report.

Representative Lenczewski moved that the author’s amendment labeled H0777DE1 be adopted. THE MOTION PREVAILED. THE AMENDMENT WAS ADOPTED.

Representative Lesch testified on behalf of the bill.

Representative Marquart, Chair of the Division, laid over HF777 for possible inclusion in the Property Tax and Local Sales Tax Division Report.


HF1947 (Marquart) Property tax petitions 60-day rule modified.

Representative Marquart moved that HF1947 be heard and laid over for possible inclusion in the Property Tax and Local Sales Tax Division Report.

Representative Marquart testified on behalf of the bill. Laurie Miller, Lawyer with Fredrickson and Byron Law Firm, testified in favor of the bill. Tom May, Hennepin County Assessor, testified in opposition to the bill. Bob Rudy, Assistant Hennepin County Attorney, testified in opposition to the bill.

Representative S. Anderson, Member of the Division, laid over HF1947 for possible inclusion in the Property Tax and Local Sales Tax Division Report.


HF956(Lenczewski) Bloomington fiscal disparities pool contribution obligation eliminated.

Representative Lenczewski moved that HF956 be heard and laid over for possible inclusion in the Property Tax and Local Sales Tax Division Report.

Representative Lenczewski testified on behalf of the bill.

Representative S. Anderson, Member of the Division, laid over HF956 for possible inclusion in the Property Tax and Local Sales Tax Division Report.


The meeting was adjourned at 3:01 P.M.


Representative Paul Marquart, Chair


Paul Cumings, Committee Legislative Assistant
More Info On This Meeting..

Bills to be heard at 8 a.m.:
HF1518 (Brown) Local government aid programs and appropriations modified, and school finance equalizing factors indexed
HF1534 (Hilstrom) Local government aid distribution modified, and appropriation increased.
HF1115 (Norton) Local government aid distribution mechanism amended to decrease volatility.
HF1381 (Atkins) Local government aid inflation adjustment provided.
HF346 (Severson) City aid local government aid base increased for certain cities.
HF1746 (Gottwalt) Local government aid city aid base increased for specified cities.
HF54 (Mullery) City aid base additions provided for certain cities, city aid appropriation limit increased, and aid required to be used for certain purposes.
HF1774 (Kalin) Local government aid payable to a specified city increased.
HF1881 (Bigham) Local government aid city base adjustment modified for certain cities has been added to the agenda.
HF1933 (Marquart) Local government aid distribution formula modified has been added

Bills to be heard at noon:
HF390 (Rukavina) Disabled veteran or surviving spouse homestead property tax exemption provided
HF2108 (Dettmer) Payment in lieu of taxes; allowing a town that incorporates into a city to continue receiving certain payments
HF2096 (Eastlund) Providing a valuation exclusion for homesteads of certain disabled military veterans
HF956(Lenczewski) Bloomington fiscal disparities pool contribution obligation eliminated.
HF1924 (Lenczewski) Metropolitan fiscal disparities program study required, and money appropriated.
HF1632 (Tillberry) Homeowners property tax refunds increased, and household income modified for persons age 65 or older.
HF1648 (Gottwalt) Senior citizen's property tax deferral program modified.
HF1260 (Severson) Taxable market value increase prohibited for homesteads owned by persons at least 65 years of age and within certain income limits
HF2150 (Hilstrom) Low-income rental housing required to participate in the crime free multihousing program to receive a reduced property tax class rate.
HF142 (Wardlow) Property tax refund household income definition modified to exempt the amount of any military disability pay received by a veteran from the federal government.
HF1234 (S. Anderson) Supplemental refund provided under the additional property tax refund program.
HF1372 (Ward) Homeowners' property tax refunds maximum amount increased.
HF2052 (Atkins) Seasonal recreational property tax refund provided.
HF61 (Sviggum) Property tax rebate provided, and money appropriated
HF2122 (Brod) Property tax refunds; removing the maximum from the homeowner refund; implementing an income phaseout for the special refund
HF1947 (Marquart) Property tax petitions 60-day rule modified.
HF777 (Lesch) A bill for an act relating to taxation; property; providing a housing opportunity area tax abatement program

Bills Removed from Agenda:
HF1918 (Wagenius)