FROM THE CAPITOL
The Tax Conference Committee met the morning of Wedneday, May 8 at 8:30 and until 10:30 that night. Time was spent on four economic development projects: 3M in Maplewood, Emerson in Shakopee, Baxter in Brooklyn Park, Mayo in Rochester and MOA in Bloomington.
- In the morning session, they compared the differences in the Senate and House approaches to the projects.
- In the evening session they dug into the Mayo project and after asking if committee members had questions on the other projects, which no one did, they moved on to the tobacco provisions.
- They might reach agreement before the weekend, but on the other hand, this could go on into the following week. At this point, only a few people really know what’s going on.
- The State General Levy business property tax increase hasn’t come up in discussion.
A comment on the unifying themes of more money and more progressivity in the current tax plans at the Capitol:
“If nothing else, Minnesota appears to be positioned to become a popular research destination for scholars interested in investigating the timeless question of how far this lever (more money and more progressivity) can be pulled before creating collateral damage to economic growth, the stability of the tax system, and general state competitiveness.”
Minnesota Center for Fiscal Excellence
“Taxation and the Session Homestretch,” Fiscal Focus, March-April 2013
On behalf of all business property taxpayers, thank you to the impressive number of NAIOP members who are contacting their legislators and members of the Tax Conference Committee regarding the business property tax increases in HF 677.
“Costs matter to Minnesota businesses and job-creators. These tax increases fail the test of government supporting job creation and incentivizing businesses to expand in Minnesota.”
NAIOP Minnesota’s board of directors sends a letter of concern to Tax Conference Committee members and Governor Dayton
“Taxing business properties too aggressively will cause our tenants to invest elsewhere or disinvest here, causing stagnation or a decline in job creation and economic development.”
NAIOP applying pressure through op eds
House and Senate tax bills misuse “fiscal disparities”
“Office absorption rates for the region have just turned positive in 2011-2012 after showing a net loss in occupancy from 2008-2010. The word used by those who understand this market is ‘fragile.’”
“Legislators are proposing to subsidize one competitor in a way that removes much of the risk for that developer and does not require the accountability to the public that should come with such a large subsidy.”
“What kind of policy would make office owners, who may already have challenges with vacancy, subsidize a competitor that might actually take one of their existing tenants?”
“From the Citizens League perspective,” this is “a bad policy.”
Bob DeBoer, Project Director, Citizens League
St. Paul Pioneer Press, Thursday, May 9, 2013
Tax break for MOA is a hard sell for some
“It’s an appealing funding source at the Legislature because the money doesn’t go through the state budget. But it worries others. In its 42-year history, opponents say Fiscal Disparities never has been used to subsidize this sort of private development, but if the Mall of America opens the door, others will surely follow.”
“But who draws the line of who’s worthy of a subsidy?”
Bob DeBoer, Project Director, Citizens League
St. Paul Pioneer Press, Monday, May 6, 2013
Taxpayers asked to subsidize Mall of America expansion
The Mall of America is looking to double in size and taxpayer money could be used to cover some of the costs.
KARE 11, May 6, 2013
Mall plan riles CRE leaders
“Requiring businesses to finance their competitor’s projects through an increase in property taxes is a serious misuse of the pool.”
David Kordonowy, President of Steiner Development & 2013 President of NAIOP Minnesota
“Fiscal disparities was never set up to be a funding mechanism. … It wasn’t meant to be used like TIF as a funding mechanism. We just think that’s bad policy.”
Pat Mascia, Duke Realty, NAIOP board member and past president
Finance and Commerce, May 7, 2013
You, every other business property owner, and your tenants should be concerned
Fiscal disparities again a target at the Minnesota legislature
As the demand for more local revenue sources has grown, proposals to tap the program for favored local public or private projects have grown more frequent and more creative. In 2013, the fiscal disparities program will redistribute approximately $565 million worth of tax base levy dollars around the metro area, according to the program’s administrative auditor and the Department of Revenue.
Minnesota Real Estate Journal, April, 2013
Job Growth Is the #1 Driver of Commercial Real Estate
Working hard on your behalf-from NAIOP Corporate
According to a new Cassidy Turley report, for every 100,000 net new office-using jobs created, vacancy typically falls by 60 basis points six months later.
Top 10 Non-Farm Job Growth Markets
February 2013/February 2012
To members of the Senate Tax Committee from NAIOP Minnesota President David Kordonowy
“We are concerned that regardless of how any diversion from the fiscal disparities program might be structured, metro area business properties will ultimately bear the burden of financing these projects, private or public, through an increase in the area-wide rate.”
Proposed street fees rile property owners
“I just think it’s very disingenuous to say we want to provide property tax relief but then take it out of the other pocket and call it something else.”
Kaye Rakow, Director of Public Policy, NAIOP Minnesota
Finance and Commerce, Wednesday, April 24, 2013
United for Jobs Launches Campaign Across Minnesota with TV, Radio, Newspaper, and Online Ads
Effort Will Focus on Spending Accountability
“Before the Governor and legislators ask for more from taxpayers, they need to go line-by-line through the budget, make sure they have cut the waste, and are accountable for every single taxpayer dollar they spend,” said David Olson, president of the Minnesota Chamber of Commerce. “If they could save just two cents on every dollar spent, they would save over $700 million ($36.7 billion times .02), thus wiping out the deficit.”
To learn more visit www.UnitedforJobsMN.com or follow @UnitedforJobs on Twitter.
Watch a TV ad “Highest”
Press release
Messaging document
Spending reform items
List of United for Jobs Coalition members
“Minnesota has a lower margin for error in being a significant outlier on business taxes and costs than other ‘high tax, high service’ peer states.”
Finding Our Balance: Taxes, Spending and Minnesota Competitiveness
Analysis of 10 national competitiveness studies offers perspective on striking a balance between public investments and business costs.
Minnesota Center for Fiscal Excellence
Mark Haveman’s PowerPoint presentation to the Public Policy Committee
Press Release
Executive Summary
How much ‘fairness’ is too much?
The state’s income tax system is already among the nation’s most progressive
“Fairness often is ‘politically convenient as an argument to raise more revenue,’ the Center’s executive director, Mark Havemen, told us. ‘It’s a lot easier to raise revenue by saying somebody else is not paying their fair share.’ “
Read the editorial
St. Paul Pioneer Press Editorial, April 10, 2013
