Turbo-Charged Tax-Hike Protection
By Chuck Muth (03/22/05)
Property owners who are not happy with their current property tax situation should take a serious look at a new proposal being considered in Minnesota.
Every year, Minnesota property owners receive a "Truth in Taxation" notice from the government showing the taxable market value of their home along with the current property tax being levied against their property by their local governments. The notice also discloses the proposed market value of the home for the next year, including the proposed new tax levy. In addition, it computes and shows the percent your taxes will be raised or lowered by the proposed new levy.
This disclosure alone is tremendously valuable to beleaguered property owners; however, Minnesota Gov. Tim Pawlenty is proposing a "turbocharged" truth in taxation notice which would really give taxpayers some say in the amount of property taxes they pay to local and county governments. And it's an idea Nevada's legislature ought to consider as part of any property tax bill which may come out of this year's session.
Just as businesses regularly gauge customer satisfaction through the use of surveys, Gov. Pawlenty is proposing that a "Taxpayer Satisfaction Survey" be added to the annual Truth in Taxation notice. In short, the survey would disclose the current property tax levy for the city and/or county where your home sits, next to the proposed levy for the following year, including the percent change. Below that information would be a perforated tear-off card where property owners are asked to respond to one simple question: "Are you satisfied with the proposed property tax levy for your city and/or county?"
Now here's the kicker.
If the number of survey responses marked "No" exceeds 20 percent of total parcels in the jurisdiction, state law would automatically require voter approval before the new levy could be imposed. The voter referendum would take place within 60 days of the deadline for submitting the Taxpayer Satisfaction Surveys. Voters would then be given the simple choice of keeping the existing tax levy or the new, proposed one.
In announcing the legislation, Gov. Pawlenty said, "When it comes to spending the people's money, we shouldn't be afraid of the people," noting that the surveys "will give citizens another opportunity to make their voices heard."
Elected officials in other states, currently weighing their own property tax changes, shouldn't be afraid of the people either. Indeed, they ought to give their citizens the bullhorn of a Taxpayer Satisfaction Survey just like the one being considered for Minnesota's property owners. It's an idea whose time is long overdue.
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