NAIOP Pulse

From the Capitol

HF 389/SF 270, Interim zoning provided, municipal development contracts provisions modifications, and municipal development land dedication and fees provided.

This land use reform bill remains alive and is poised for floor votes in both the House and the Senate.
Substantive changes amending out the moratorium provisions protecting completed applications and requiring a super majority vote to enact a temporary moratorium are likely to face strong opposition from DFL members in both bodies.

The two remaining provisions of the bill provide important reform to applicants proposing development projects, aimed at creating a more efficient and equitable approval process for land use applicants.

• The first major change requires park dedication fees to be negotiated with an applicant or be based on a current fair market appraisal of the underlying land value.
• The other change in the bill requires that no term or condition may be included in a development contract which isn’t authorized by law or is mutually agreed upon by both parties.
• Finally, the bill would require that the amount of financial security for work authorized under the development contract must have a rough proportionality to the work to be completed by either the municipality or the applicant.

Link to HF 389
Link to SF 270

Thanks to James Vagle, Public Policy Director, Builders Association of the Twin Cities (BATC) for providing this summary.
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HF 1954/SF 1741, a bill for an act relating to local governments; requiring counties and certain cities to report additional budgetary information.

NAIOP Minnesota’s expenditure type reporting proposal continues to gather momentum.

Amended bill language is in the Senate Tax Bill, which awaits floor action. The bill itself, SF 1741, remains in the Senate Tax Committee and can travel separately if necessary.

In the House, the bill has had hearings in the following committees: Government Operations and Elections, State Government Finance, Property and Local Taxes, and Taxes. The bill has been re-referred to State Government Finance and after passage in that committee, it will be sent to the House floor with a recommendation to pass.

Conversations with the Governor’s office regarding the legislation are in the works.

Paul Reinke, Haugland Companies, and Nexus Task Force Chair, Mark Haveman, Minnesota Taxpayers Association, and Kaye Rakow, NAIOP, have been providing testimony, along with the bill’s authors, Senator Ted Daley, District 38 and Representative Keith Downey, District 41A.

Link to HF 1954
Link to SF 1741
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HF 2337/SF 1972, Omnibus Tax Bills, financing state and local governments, making changes to individual income taxes, property taxes, sales and use taxes, mineral taxes, liquor taxes, corporate franchise taxes, exemptions and deductions, and other tax related items.

As reported frequently by the press, both of these bills contain a phase out of the state general property tax.

HF 2337 has passed on the House floor and SF 1972 is waiting action on the Senate floor. After passage on the Senate floor, a conference committee will be appointed to work out the differences between the two bills before ultimately going to the Governor’s desk for action.

Link to HF 2237
Link to SF 1972

March 29, 2012 at 3:17 pm

Minnesota Taxpayers Association announces the release of its annual 50-state property tax comparison study for taxes payable 2011

State property tax rankings jump; commercial property tax rankings among nation’s highest

• Urban commercial rankings and relative tax burdens rose significantly in 2011 and now rank among the top five in the nation, their highest level since 2000.
• Both urban and rural industrial tax burdens increased relative to national averages. Industrial property taxes are 10% or more above the national average for all but the lowest valued parcels.
• Complete elimination of the statewide levy in 2011 would have dropped Minnesota’s urban rank 11 spots (from 5th to 16th nationally for a $1 million-valued commercial property and 11th to 22nd for a $1 million-valued industrial property).
• Regionally, Minnesota’s tax burdens are higher compared to all other Upper Midwestern states.

Link to Executive Summary
Link to Press Release

March 29, 2012 at 3:16 pm

From the Public Policy Committee

Sen. Tom Bakk, Senate Minority Leader from Cook, MN, will be the guest at the next Public Policy Committee meeting. He’ll give his perspective on what’s going on at the Capitol.

You are welcome to join the conversation with Senator Bakk. Here are the details:

• Thursday, April 5, 7:45 – 9:00 am
• NAIOP’s offices at The Harrington Company (directions)

Want to attend? RSVP to Kaye Rakow at kayerakow@harringtoncompany.com.

House Deputy Minority Leader Debra Hilstrom was the guest at March’s meeting. She urges NAIOP members to get involved, and says that in her experience there has never been a time when “state government needed smart people as much as it does today.”
Read a synopsis of their discussion.

March 29, 2012 at 2:52 pm