Property Taxes, State Funding & Fiscal Issues

Funding of city government operations in Minnesota is derived primarily from property taxes and state aids and credits, including local government aid (LGA). The League provides a variety of resources to help cities and others understand complex state-aid formulas, trends in state funding and property taxes, and a host of other fiscal issues.
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State budget deficit
The state is facing a $4.6 billion deficit for the 2010-2011 biennium. This is the largest deficit the state has had since 2003, when it slashed local government aid.
Read more about the state budget deficit and how it may affect cities
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Property tax reports
Each year the League prepares an annual property tax report containing levy and rate information for all Minnesota cities. (The report and property tax data are also published in Minnesota Cities magazine.)
Read more about LMC Property Tax Reports (2001-2009)
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Revenue recapture authority for cities
Under 2008 Session Law chapter 154, cities are given more general authority to contract with the Department of Revenue (DOR) to collect certain unpaid debts (article 16, section 6). Cities had a limited use of this tool prior to passage of this legislation. Now cities can use the tool for such debts as unpaid taxes, interest and penalties on the unpaid taxes, criminal and petty misdemeanor fines, and court-ordered restitution. The new authorization makes changes to Minnesota Statutes, section 270A.
Learn more about revenue recapture from the Department of Revenue web site
View the form to contract with the DOR for revenue recapture (pdf)
View a DOR fact sheet about revenue recapture (pdf) ___________________________________________________________________________

Tax increment financing (TIF) decertification
TIF is a tool for economic development. When TIF districts are decertified, it can affect a city's tax base and LGA distribution.
Read more about TIF Decertification
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Property Tax Calculator
Our Property Tax Calculator is an interactive tool that allows users to compare cities with each other and over time.
Access the Property Tax Calculator
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View other key League resources

LGA resources

Property tax resources

City budgeting resources