Metro Affairs

Two nearly identical bills that would have abolished a metropolitan area property tax sharing program may not go anywhere this session, despite a pair of committee hearings.

HF514, sponsored by Rep. Ann Lenczewski (DFL-Bloomington), and HF495, sponsored by Rep. Jeff Johnson (R-Plymouth), would abolish the metropolitan area fiscal disparities program. Both were heard by the House Taxes Committee March 27 and April 1, but neither was acted upon.

Rep. Ron Abrams (R-Minnetonka), chair of the taxes committee, said the bills are "dead for this year." In doing so he implied that the state budget crisis would not allow the bills, either one of which would lead to a $6.9 million tax loss to the state between fiscal years 2004 and 2005.

Under the program, in place since 1975, cities contribute 40 percent of their growth in commercial and industrial tax base since the 1971 assessment to a distribution pool. The money is then appropriated to contributing cities based on a formula accounting for population and property values.

HF514 lacks a Senate companion bill. The Senate companion bill to HF495 is SF635, sponsored by Sen. William Belanger (R-Bloomington). It awaits action before the Senate.

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