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NAIOP Minnesota's 2013 Property Tax Talking Points
For Minnesota’s thousands of job-creating small businesses, our dozens of Fortune 500 employers, and our tens of thousands of entrepreneurs innovating and working to build a brighter economic future...
--COSTS MATTER--
...and the costs that matter most are the fixed costs they cannot control, such as the property taxes they must pay on the buildings they own or in which they lease space to office or operate.
Read more.
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“As our members talk to their business tenants across the state, the message they hear over and over is loud and strong: Costs matter...and among the costs they must deal with, Minnesota’s business property taxes continue to be the single major expense over which they have absolutely no control.”
David L. Kordonowy
President/CEO, Steiner Development
2013 President, NAIOP Minnesota
Read more
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The Amazing Power of a Penny: Ongoing Support from Current Contributors
"The Penny Per Square Foot Fund has proven itself over the years since its start to be one of the best investments we can make..."
~Pat Mascia, Duke Realty Corporation
"Without NAIOP’s Penny Per Square Foot Fund our tenants would still be paying the highest property taxes in the nation."
~Stew Stender, Stewart Capital Partners
Read more
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A Message to Governor Dayton and Minnesota's Legislators
“As we listen to our tenants every day, one message remains constant: costs really matter to them…and new, friendlier policies regarding business property taxes and regulation would go far in assuring their success and speeding Minnesota’s economic recovery, especially with regard to employment.”
Pat Mascia, Senior Vice President–Minneapolis/St. Paul Operations, Duke Realty, 2012 President, NAIOP Minnesota
NAIOP Minnesota introduces its 2012 president and public policy team, along with its legislative priorities.
Read more
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NAIOP Minnesota's 2012 Property Tax Talking Points
For Minnesota’s thousands of job-creating small businesses, our dozens of Fortune 500 employers, and our tens of thousands of entrepreneurs innovating and working to build a brighter economic future...
--COSTS MATTER--
...and the costs that matter most are the fixed costs they cannot control, such as the property taxes they must pay on the buildings they own or in which they lease space to office or operate.
Read more
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Q: What does greater transparency in government spending have to do with property taxes?
A: Everything!
It's time to unveil the drivers behind the rising cost of public services and the demand for increasing local tax revenues.
Read more
Transparency Proposal Talking Points for NAIOP members
Transparency Proposal FAQ
Transparency Proposal Press Release, Initiative to Spur Greater Transparency in Local Government Spending Launched by NAIOP Minnesota
Ultimately local government spending drives property tax levies and, in turn, property taxpayers’ bills. This is the most influential piece of the property tax system. It is also the most important and—in many ways—the most challenging element for taxpayers to understand.
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The place will be filled with new people.
Referring to the state capitol on January 4th, the opening of the 2011 legislative session.
Who are these “Newbies”?
In all, an amazing 60 new legislators—24 new Senators and 36 new members in the House.
To introduce them to NAIOP Minnesota and our issues, we have sent to each of them, along with their returning incumbent counterparts this publication. NAIOP’s story and priorities are told through the words of our own members and our public policy team leaders. Read our latest publication.
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2010 Comparative Tax Study
An urgent message to our state’s policymakers … Minnesota’s job-creators are eager to go back to work!
NAIOP’s 23rd annual Comparative Tax Study shows that the property tax burden under which Minnesota businesses labor tops all other states in our study but one.
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NAIOP President's Message to Minnesota Business Leaders and State Policymakers:
"Supporting Minnesota's economic recovery and assuring future job growth in our state will require policies that restore business confidence and assure investors, risk-takers and employers."
-- Doug Fulton, Senior Director, Cushman & Wakefield of Minnesota, Inc., 2010 NAIOP Minnesota President
Click here to read the balance of NAIOP's message sent to 2000 businesses across the state, members of the Minnesota Legislature, Governor Pawlenty and constitutional officers.
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2010 Property Tax Education Flyer
Increasing fixed costs, such as property taxes, on any Minnesota employer in this tough economy will only make it even more difficult for them to retain existing employees and keep them working, let alone create new jobs or bring back workers who have already been laid off.
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Influencing the Process – the 2009 Legislative Session
Cover memo from Director of Public Policy on 2009 Legislative Session
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In this special Situation Report, NAIOP Minnesota “connects the dots” with an assessment of the 2009 Legislative Session.
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2009 Comparative Tax Study
An urgent message to Minnesota's policymakers...
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2009 Property Tax Education Flyer
It is likely that a proposal to increase business property taxes over and above the already projected statewide increase of 8% for 2009 will be on the legislative agenda again this year. In preparation for that debate, it is important that business property taxpayers fully understand Minnesota's dual system of taxing commercial and industrial property. NAIOP in partnership with the Coalition of Minnesota Businesses, the Minnesota Business Partnership and the Minnesota Chamber of Commerce has developed a special educational flyer explaining that system.
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Setting the stage for the 2009 legislative session.
This issue of TaxWatch provides NAIOP members with talking points, facts and figures to use when communicating with policymakers about business property taxes.
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2008 TaxWatch, Issue 2
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Everyone who benefits from reduced C/I property taxes, won by NAIOP’s efforts, should be contributing to the PPSF fund. Your pennies are needed to keep this momentum going.
Remember the PPSF fund in your budgets
Read what contributors to the PPSF fund are saying.
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NAIOP's 21st Annual Comparative Tax Study
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“Our primary obligation to our PPSF contributors, to our members, and to our tenants is to not give up any of the property tax gains we have worked so hard to achieve.”
--Murray Kornberg, 2008 President of NAIOP-Minnesota, interviewed in TaxWatch.
Read the entire article in NAIOP’s most recent issue of TaxWatch.
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“Sharing the Wealth” A New NAIOP Publication Designed To Educate Metro Area Commercial And Industrial Property Taxpayers About The Fiscal Disparities Program
Click here to read the press release about the Fiscal Disparities publication
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NAIOP's Business Taxation Study, based on a new study from the Minnesota Taxpayers Association.
The full study can be found at ENTIRE STUDY
Read MTA Press Release
Read Star Tribune Editorial on MTA Study
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Meet NAIOP Minnesota's Legislative Team
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Kaye Rakow
Director of Public Policy
(952) 928-7461 |
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Rich Forschler
Lobbyist
(612) 766-6902 |
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Doug Fulton
Public Policy Chair
(952) 465-3333 |
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Brian McCool
Land Use Subcommittee Co-Chair
(612) 492-7309 |
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Greg Munson
Land Use Subcommittee Co-Chair
(651) 633-5050 |
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Paul Reinke
Nexus Task Force Chair
(651) 330-1737 |
Backing up the team are the many members of NAIOP's public policy committee and board of directors, all of whom are active in the commercial real estate industry on a daily basis. Dozens of other individual members regularly devote personal time, energy, and resources to supporting the work of the committee and the board at the grassroots level.
Thank you Penny
Per Square Foot Contributors
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Issue Card #4 | Do the Math: Minnesota Education Spending by the Numbers
The fourth in a series of six issue cards, which will be sent to all candidates for the state legislature.
Since 2003, state directed K-12 education funding has kept pace with CPI (as shown below); the most widely used measure of inflation, and one that is viewed as an indicator of the effectiveness of government economic policy.
Education is so important to Minnesotans that we put it in our Constitution. And for at least the last quarter-century, K-12 funding has made up the largest share of the state General Fund (40% of the budget in 2012-2013). This commitment to education crosses party lines and has helped make Minnesota students some of the highest-performing in the country.
Money is important, but how we use those resources to educate our children is more important.
Read the cover letter sent to legislative candidates.
For more information on the Coalition of Minnesota Business (CMB) and to see all issue cards, visit www.MNBusiness.com.
(posted 9.13.12)
The July-August edition of the Minnesota Taxpayers Association’s Fiscal Focus is now available.
In this issue:
- State Labor Agreements Beyond the Numbers: If there was one area of strong bipartisan agreement in the state labor hearing, it was that it is imperative to reward excellence among state employees and retain talent. However, the best methods for accomplishing this are a source of significant dispute.
- MTA 2012 Accountability Index is Down on the Farm: Rising land values stemming from record prices have created both real and paper fortunes. Booming cash rents have made farmland an attractive alternative investment with returns that have destroyed conventional stock and bond options.
Read more
(posted 9.13.12)
Wednesday, October 3 MTA’s 86th Annual Meeting of Members
Rising land values stemming from record prices have created both real and paper fortunes. Booming cash rents have made farmland an attractive alternative investment with returns that have destroyed conventional stock and bond options.
- St. Paul River Centre, 9:00 am 1:30 pm
- For you policy wonks - The Policy Sessions will be on tax reform, an issue that is sure to be a focus of the Minnesota legislative session in 2013.
- Speakers include Commissioner Myron Frans,Minnesota Department of Revenue; Doug Lindholm, President and Executive Director of the Council on State Taxation (COST); and Tracy Gordon, Brookings Institution Fellow.
- If you’re interested in attending, contact Kaye Rakow at kayerakow@harringtoncompany.com.
(posted 9.13.12)
Eric Anderson to Hand Off Leadership of An Energized, Even More Activist Public Policy Committee to Doug Fulton
He will also be handing off a supercharged committee - one that has moved far beyond its long established role as legislative watchdog and defender of Minnesota's business property taxpayers to a new, more activist role as a highly visible and influential player in the legislative and political arena as a public policy "think tank" and, even more dramatically, as an aggressive catalyst for positive legislative change.
"I've been astounded," said Eric, "at how far we have been able to go in addressing the challenge of encouraging greater local government transparency in reporting on local spending."
Nice work, Eric. And thanks, on behalf of all of the members of NAIOP and local taxpayers everywhere!
Read more
(posted 8.24.12)
Issue Card #3 | Spend Smart: MN Property Taxes by the Numbers
The third in a series of six issue cards, which will be sent to all candidates for the state legislature.
Business Property Carries Large Tax Burden and Subsidizes Other Properties in the Same Jurisdiction
Effective tax rates - taxes payable as a percentage of market value - have actually been lowered for every class of property since reforms were enacted in the late 1990s. But even after reforms, the effective tax rate for business property is three times higher than for homes.
Property Tax Classification System Shifts the Burden to Business Properties
Business property comprises 13% of total state market value but pays 31% of all property taxes - paying 2.4 times more in tax than its value.
Read the cover letter sent to legislative candidates.
For more information on the Coalition of Minnesota Business (CMB) and to see all issue cards, visit www.MNBusiness.com.
(posted 8.24.12)
Editorial: St. Joseph fails in transparency
Did you ever have an experience that restores your faith in something while simultaneously reinforcing your frustrations with the topic at hand?
I've had such an experience in recent weeks, and it culminated last week ... I hope. The good news: It restored my faith in everyday residents paying attention to their government. The frustration it restored? Leaders of government resistant to transparency.
Mike McDonald, referred to in this editorial, has been an early and consistent supporter and advisor to NAIOP's transparency proposal. He is a CPA and a former city council member.
Read more
St. Cloud Times, July 14, 2012
(posted 8.24.12)
We need the city to help us understand Faribault's finances
"...the Minnesota Taxpayers Association and NAIOP Minnesota, the commercial real estate development association, have been talking with local governments, and community newspapers and chambers in an effort to get volunteer participation ... in a City Budget Transparency Project."
"The Chamber Board of Directors recognizes the opportunity this provides the city: To be a leader in the state in engaging its residents. We do, too."
"Now, we need the city to see that and jump on board."
Read more
(posted 8.9.12)
State Revenues Exceed February Forecast by $336 million
- Minnesota's net general fund receipts for FY 2012 are now estimated to total $16.450 billion, $336 million (2.1%) more than forecast in February.
- Receipts from the individual income tax, the sales tax, and the corporate income tax were all above projections.
- Net general fund receipts in fiscal 2012 are now estimated to be 5% greater than fiscal 2011.
Read the four page report
(posted 8.9.12)
2012 Coalition of Minnesota Businesses Issue Cards
Educating legislative candidates on fiscal issues
Even though the recession's impact is a little less severe in Minnesota, the projections for FY 2013 and the 2014-15 biennium are less optimistic than earlier in the year.
In order to grow and compete globally, Minnesota needs a business climate that encourages companies to innovate, expand and create jobs.
Issue Card #2 | Spend Smart: Minnesota Taxes by the numbers
The second in a series of six issue cards, which will be sent to all candidates for the state legislature.
Read the cover letter sent to legislative candidates.
For more information on the Coalition of Minnesota Business (CMB) and to see all issue cards, visit www.MNBusiness.com.
(posted 7.30.12)
Don’t forget about the primary elections!
Tuesday, August 14
All 201 seats in the Minnesota House and Senate are up for election on November 6. The process begins with the August 14 primary elections with many important seats at stake.
(posted 7.30.12)
Details on New Laws Effective August 1, 2012
- Business and commerce
- Energy
- Environment
- Health and human services
- Housing
- Military
- Public safety
- Transportation
(posted 7.30.12)
From the July 10th edition of NAIOP Source, the weekly e-newsletter from NAIOP Corporate:
Transparency in local government moving forward in Minnesota in spite of Governor's veto
NAIOP Minnesota is now working with local municipalities to establish pilot programs that will demonstrate the benefits of reporting local budgets based on spending type.
Read the article
(posted 7.19.12)
2012 Coalition of Minnesota Businesses Issue Cards
Educating legislative candidates on fiscal issues
The next legislature must be ready to make tough decisions right away.
Some of the state fiscal pressures (slowing economic growth, the global economy, an aging population, government spending trends) have been building for decades. More recent pressures brought about by the Great Recession and a projected $1.1 billion state deficit mean immediate tough decisions for the 2013 legislature.
Issue Card #1 | Spend Smart: Because we can't afford not to
The first in a series of six issue cards, which will be sent to all candidates for the state legislature.
For more information on the Coalition of Minnesota Business (CMB), visit www.MNBusiness.com.
(posted 7.19.12)
Do rising property taxes irritate you?
Don't let others worry about the decisions that determine your tax bill.
When taxes have our attention, chances are higher that we will check up on how those tax dollars ($8.6 billion statewide in property taxes in 2012) are being spent.
Understanding Your Property Taxes: 2012 Edition, an easy question-and-answer format
- Is it true that every time spending rises or revenue from non-property tax sources falls that my property tax bill goes up?
- Shouldn't there be protection from tax bills growing faster than value increases?
- How can I know how much my local governments should be spending?
Published by the Center for Public Finance Research, the research arm of the Minnesota Taxpayers Association.
(posted 7.19.12)
The St. Paul Pioneer Press appreciates NAIOP’s work to advance Expenditure Type Reporting: Asking Better Budget Questions
“...five years of cuts have left us very few places to look to cut further.”
Message from Mayor Chris Coleman, St. Paul
“All the more reason, it seems, to take a long and serious look at what’s driving costs higher...we appreciate work to advance legislation to requiring cities and counties to report more information in a way that helps residents understand local spending trends...championed by the Minnesota Taxpayers Association and the Minnesota chapter of the commercial real estate organization, NAIOP.”
St. Paul Pioneer Press Editorial, Thursday, July 12th
Read the St. Paul Pioneer Press Editorial
(posted 7.13.12)
From the front page of the July 5th Independent Review, Litchfield Minnesota:
Groups seek transparency in local government.
Several Litchfield business leaders and members of the Chamber of Commerce met on June 28th with representatives from NAIOP Minnesota to discuss a possible demonstration project modeled after proposed legislation and aimed at creating more transparency in local government.
"...the project will show the Litchfield spends taxpayer dollars wisely. What better way to demonstrate that Litchfield and Meeker County are great places to do business."
--Dee Schutte
Executive Director, Litchfield Chamber of Commerce
Read the article
(posted 7.6.12)
Floor debate of the 2012 tax bill and the governor's subsequent veto letter provided clear evidence that property taxation will be a major issue in both the November elections and 2013 tax reform proposals.
A Blueprint for Property Tax Understanding
To address this concern, NAIOP Minnesota and MTA have been working to develop an analytical tool that would provide greater understanding of why property taxes change using the information generated through expenditure type reporting. The tool is based on four key concepts:
Details on New Laws Effective July 1, 2012
- Business and commerce
- Education
- Environment
- Health and human services
- Military and veteran affairs
- Public safety
(posted 6-28-12)
How did your legislator vote on issues tracked by the business community?
The Minnesota Chamber of Commerce posted 2011-2012 voting records for both the House and the Senate, focusing on issues of importance for you and your business.
Minnesota Chamber 2011-2012 Voting Records
(posted 6-28-12)
Frank Dutke, President and CEO of United Properties, briefed Metropolitan Council members on May 2nd on commercial real estate development in the region.
The Met Council is in the process of working on the next generation of the Regional Development Framework and asked regional stakeholders to give their perspectives.
Frank gave a historical, current and projected overview of the commercial real industry, educating Council members on how the business works and what’s important to its ease and success.
To cite a few of his points:
- Cost and regulations really mattermust be supported by market rents
- Developers don’t create markets, they react to them
- Scarcity of public resources demands more cost-effective and efficient government service delivery
- Allocate resources to alternatives that are most likely to result in economic expansion
- The interplay between risk and a reasonable rate of return
- The impact of technology on job creation and the demand for space Thanks to Rick Collins and Pat Mascia for helping Frank prepare his remarks.
More information on the Met Council’s Regional Development Framework
(posted 5-31-12)
Matt Van Slooten, President of Carlson Real Estate Company, represents business property taxpayers on the Property Tax Working Group.
The Property Tax Working Group was established by the Minnesota Legislature in 2010. The specific goals of this working group are:
- to simplify the property tax system and make it more understandable;
- to shorten the two-year cycle from assessment through property tax collection; and
- to determine the cost versus the benefits of the various property tax components and to suggest ways to achieve some of the goals in simpler and more cost-efficient ways.
More information on the Property Tax Working Group
(posted 5-31-12)
David Bade, Director of Land Development Services at RLK Inc., represents commercial real estate developers on the Minimal Impact Design Standards (MIDS) Work Group, the next generation of storm water management.
The group must report its findings to the Legislature by February 1, 2013.
Historically, the goal of storm water management was to move water off the landscape quickly and reduce flooding concerns. Now the focus is on keeping the raindrop where it falls.
The development of MIDS is based on low impact development (LID) an approach to storm water management that mimics a site’s natural hydrology as the landscape is developed. Using the LID approach, storm water is managed on site and the rate and volume of predevelopment storm water reaching receiving waters is unchanged.
The Minnesota Legislature allocated funds to “develop performance standards, design standards or other tools to enable and promote the implementation of low impact development and other storm water management techniques.”
Members of the MIDS workgroup will provide guidance and recommendations to the MPCA on the MIDS project.
More information on MIDS
(posted 5-31-12)
Brandon Champeau, Development Manager at United Properties, represents commercial real estate developers on the MIDS Linear and Redevelopment Technical Team, which is a sub-group of the MIDS Work Group, formed in February 2012.
More information on the MIDS Linear and Redevelopment Technical Team
(posted 5-31-12)
Testifying at the Capitol:
Representing the Nexus Task Force and all property tax payers in support of NAIOP’s expenditure type reporting legislation:
- Paul Reinke, Senior Director Development at Haugland Company, provided the perspective of a commercial property owner as well as a city council member.
- Mark Haveman, Executive Director of Minnesota Taxpayers Association, provided the perspective of good tax policy and transparency for all taxpayers.
Representing the business property taxpayer in support of the phase out of the State General Property Tax:
- Mark Reiling, Senior Vice President, Principal, Cassidy Turley, provided the perspective of an owner/investor.
- Doug Fulton, Executive Director, Brokerage Services, Cushman & Wakefield/NorthMarq, provided the perspective of a site selector/lease negotiator.
- Pat Mascia, Senior Vice President-Minneapolis/St. Paul Operations, Duke Realty, provided an overview of the market both in Minnesota and nationally.
- Adding the perspective of a business owner and business property taxpayer, were Kevin Bador, Executive Vice President, Japs Olson Company, in St. Louis Park and Steve Wise, President of Cass Screw Machine Products in Brooklyn Center.
(posted 5-31-12)
State view: Access to details would make local government budgets easier to trim
From the Duluth News Tribune, Wednesday, May 23, 2012
“Last week I wrote a letter to the lawmakers who sponsored a great idea that was included in the tax omnibus bill vetoed by Gov. Mark Dayton last week. The great idea was requiring cities and, I hope, all units of government, including school boards, eventually to post four years of budgets by expenditure type on their websites.”
“This would make city and other local government spending so much more comprehensible to voters and, frankly, to city council members. I know as a former city council member how dependent councilors can be on staff; you have to push to get behind the numbers. I could have done a better job with this kind of reporting. I can see greater accountability and leaner budgets as clear outcomes.”
Kim Crockett is chief operating officer, executive vice president and general counsel for the Center of the American Experience, a nonpartisan, tax-exempt, Minneapolis-based public policy and educational institution.
(posted 5-31-12)
Editorial boards across the state continue to support NAIOP's expenditure type reporting proposal
A provision for transparency in local government
St. Paul Pioneer Press, Thursday, May 10, 2012
- "A bill in the Minnesota Legislature to require cities and counties to report more budget information -- in a way that helps citizens spot local spending trends -- could become law as part of a renegotiated tax bill. If it fails, it will be one of the 2012 session's missed opportunities."
- "Dayton's signature on the tax bill will mean many things to Minnesotans. We hope it also will mean new transparency for local government units and the citizens who want answers that now are buried deep in city budgets."
- The St. Paul Pioneer Press has been supportive of NAIOP's Expenditure Type Reporting since day one.
- Read the entire editorial.
A little more transparency in Faribault is a good thing
Faribault Daily News, Thursday, April 26, 2012
- "It's a good bill, one that empowers taxpayers and that deserves to be law."
- "Far be it for us to suggest another state government mandate is a good thing, but the measure looking for more local government transparency may very well be just that."
- Read the entire editorial.
(posted 5-10-12)
From the Capitol - Tax 2 Bill
On May 9, both the House and Senate passed the second tax bill, after Governor Dayton vetoed the first tax bill.
NAIOP's provisions remaining in the tax bill:
- A one year freeze on the State General Property Tax escalator.
Originally, both the House and Senate tax bills had a complete phase out of the tax. However, in conference committee that was changed to a permanent freeze on the statutory escalator on the tax, which ultimately became a one year freeze on the escalator.
- Expenditure Type Reporting proposal.
This proposal requires cities and counties to break down spending by expenditure types in addition to program areas, which is the typical way budgets are presented.
It is possible that Dayton has or will have the Tax 2 bill on his desk today or tomorrow. He then has fourteen days to either sign or veto the bill. So, we wait.
Thank you to all NAIOP members who provided great back up support by communicating with the governor's office.
Read NAIOP President Pat Mascia's letter to the Governor.
Win or lose, we still have a lot of work to do and will continue with a vengeance.
(posted 5-10-12)
Duluth, St. Louis County retirees see six-figure pensions
A Chicago-based watchdog group shows that 17 retired city or county workers receive pensions of more than $100,000 a year.
- "At present, Public Employees Retirement Association of Minnesota (PERA) is only 76 percent adequately funded to meet its future commitments. The system would need another $4.4 billion to become fully funded."
- "Solvency - or the assurance that 100 percent of potential pension payouts have money behind them - is mandated by state law by 2031. PERA is on track to reach that goal...."
- According to David Montgomery, chief administrative officer for the city of Duluth: "Minnesota is not the worst out there, by far. But there is an issue... It's not an imminent, crisis-tomorrow issue, but if you let it go, the less time you have to make up any shortfall. And time is your best friend to make the impact of any change more moderate."
From the Duluth News Tribune, April 22, 2012
MNDOT's New Corridor Investment Management Strategy (CIMS)
In the event you have an interest in MNDOT's CIMS, which will be rolled out this spring, the following links provide necessary information:
From the Capitol (as of Thursday morning, April 26)
With the intent of adjourning three weeks early on Monday or Tuesday at the latest of next week, all negotiations are focused on the Omnibus Tax bill, the Vikings Stadium and the bonding bill.
Omnibus Tax Bill
The conference committee appointed to work out the differences between the Senate and House tax bill hasn't met for three weeks. In the meantime, behind the scenes negotiating on the tax bill continues between legislative leadership and the governor.
- Both the Senate and House tax bills contain the phase out of the state general property tax.
- NAIOP's expenditure type reporting provision is in the Senate tax bill, but not the House tax bill.
Expenditure type reporting legislation
We're being out gunned at the Capitol on this one. Simply put, cities and counties do not want this legislation passed. They strongly resist taxpayers having easy access to the expenditure type information called for in the bill. They have significantly stepped up their lobbying efforts over the last few weeks, bolstered by the efforts of AFSME lobbyists.
- In the House, the bill remains in the Ways and Means committee.
- In the Senate, again, the bill's language is in the tax bill with hopes that the House accepts the language as part of the final omnibus tax conference report.
(posted 4-26-12)
Eric Anderson, Vice President of Development & Facilities at New Perspective Senior Living and chair of NAIOP’s public policy committee, writing to Senator Julianne Ortman, chair of the Senate Tax Committee on the Expenditure type reporting provision:
“The result of this bill will allow taxpayers to better understand not just the costs of ‘programs’ that local government provides, but also how they spend the money to pay for the programs (salaries, services, equipment, etc.) ... The opposition to this appears to be more about not wanting the public to ask questions about how governments operate."
Read Eric's letter.
(posted 4-25-12)
Please take time to write a letter to Governor Mark Dayton and as soon as you can. Your message to the Governor can be as short and simple as "I'm writing to ask you to support the phase out of the State General Property Tax."
Talking points and background information
The Governor's contact information:
The Honorable Governor Mark Dayton
130 State Capitol
75 Rev. Dr. Martin Luther King Jr. Blvd.
St. Paul, MN 55155
(651) 201-3400
(posted 4-12-12)
It’s time for NAIOP members to contact Governor Mark Dayton:
It's likely that the phase out of the State General Property Tax will end up in the Omnibus Tax bill and be presented to the Governor for his decision.
- Pat Mascia, Senior Vice President-Minneapolis/St. Paul Operations, Duke Realty, and 2012 NAIOP Minnesota president, sent a letter to the Governor asking him to support the phase out of the state general property tax. Read his letter
- A group of influential NAIOP leaders and members, experienced in commercial real estate ownership and management, are sending letters to Governor Dayton.
- From the Capitol
HF 389/SF 270, Interim zoning provided, municipal development contracts provisions modifications, and municipal development land dedication and fees provided.
Fails on the Senate on a close vote after passing on the House floor. BATC will keep pushing this legislation next session.
HF 1954/SF 1741, a bill for an act relating to local governments; requiring counties and certain cities to report additional budgetary information.
Is still alive and well. In the Senate, the bill language is in the Senate Omnibus Tax Bill. In the House, the bill is in the House Ways and Means Committee.
(posted 4-12-12)
- Ramsey and Hennepin County Mortgage Registry and Deed TaxEnvironment Response Funds
Both the Hennepin and Ramsey taxes are set to expire and the extension of these two taxes isn’t getting enough traction at the Capitol.
At the April 5th public policy committee meeting, the committee agreed that the money raised and spent on cleaning up polluted and contaminated land is important for redevelopment.
If you have utilized or plan to utilize these funds and feel that the money raised by the tax is vital to contamination cleanup and economic development, you should contact the Tax Chairs at the Capitol and urge them to continue to impose the mortgage registry and deed tax.
Lorrie Louder, St. Paul Port Authority, provides a background of the tax, its status at the Capitol, and other words of help in an April 5th email. Read her email on Environment Response Funds (ERF).
A meeting at the Capitol with Representative Davids is scheduled for the 16th and Lorrie asks that you send your emails as soon as possible.
Letter from the St. Paul Port Authority to Ramsey County re: ERF
Ramsey County ERF talking points
Facts about Ramsey County's ERF
(posted 4-12-12)
- The last day before Minnesota legislators left the Capitol for their spring break, Senator Terri Bonoff (DFL), Assistant Minority Leader, shared her views on the status of some key issues and major legislation with NAIOP’s Public Policy Committee.
Read her update on issues including taxes, light rail, prevailing wage, and the Vikings.
(posted 4-12-12)
- 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.
- 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
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
(posted 3-29-12)
- 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.
- Regionally, Minnesota’s tax burdens are higher compared to all other Upper Midwestern states.
Link to Executive Summary
Link to Press Release
(posted 3-29-12)
- NAIOP Minnesota’s expenditure type reporting proposal continues to gather momentum
- From the Capitol
The bill is making its way through the legislative process. It’s been heard three times in the House and two times in the Senate. Amendments have been made to address issues related to timing requirements for reporting the information.
- Two articles came out in support of NAIOP Minnesota's expenditure type reporting legislation, calling for more transparency in local budgets.
- Minnesota State Rep. Keith Downey wants local governments to more clearly report the types of things they are spending money on. He thinks business owners and others with issues over property taxes would then be better informed.
Read more.
- Based on current policies and historical trends, city expenditures are expected to grow at a 5.5% annual rate through 2025 - a whopping 49% faster rate than city revenues, according to the League of Minnesota Cities.
And the first two questions of every newly involved citizen should be, "just what expenses are growing and exactly why are they growing so fast?" Read more.
(posted 3-15-12)
- More information on expenditure type reporting:
- 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.
The committee invites all NAIOP members to join them. 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.
(posted 3-15-12)
- Legislation of interest to NAIOP members:
- Bills phasing out the state general property tax in both the House and the Senate will most likely be included in the final tax bills. This week, the House put out the first draft of its tax bill: “State general levy reduced and eliminated, additional property tax refund modified, and money appropriated.”
Link to status of HF2337.
- Interim zoning provided, and municipal development land dedication and fees provided.
Link to status of HF389.
- Hennepin county; watershed districts required to get municipal approval before acquiring property in the municipality.
Link to status of HF2589.
(posted 3-15-12)
- Two recent editorials came out in support of NAIOP Minnesota’s expenditure type reporting legislation, calling for more transparency in local budgets.
- The pitter-patter of bipartisan feet
“It’s an itty-bitty piece” of legislation, if anything that “could be a baby step toward bigger bipartisan moves … this could be it.”
Lori Sturdevant, Star Tribune Opinion Exchange, Sunday, February 19, 2012
- Truth in Budgeting
The legislature may require standardized reporting by counties and most cities beginning in fall.
“Regardless of the political bickering and the hidden agendas-be they fictional or real-all sides should support greater transparency in government spending.”
Dale Kurschner, Editor’s Note, Twin Cities Business Magazine, March 2012
- FOR IMMEDIATE RELEASE
From NAIOP Minnesota, the Commercial Real Estate Development Association
Proposed legislation would require “aggregated expenditure type” reports by cities with a population over 2,500 and counties.
Read the full press release.
- More information on expenditure type reporting:
- NAIOP members shine at the Capitol this week
Testifying in front of the Senate Tax Committee meeting on Wednesday morning in support of the phase out of the State General Property Tax:
- Mark Reiling, Senior Vice President, Principal, Cassidy Turley, providing the perspective of an owner/investor.
- Doug Fulton,Executive Director, Brokerage Services, Cushman & Wakefield/NorthMarq, providing the perspective of a site selector/lease negotiator.
- Adding the perspective of a business owner and business property taxpayer, was Kevin Bador, Executive Vice President, Japs Olson Company, in St. Louis Park.
- Rounding out the presentation was Kaye Rakow, Director of Public Policy, NAIOP Minnesota, giving a brief overview of business property taxes in Minnesota.
- Providing observation and support was Kim Ihle, CBRE.
- Testifying previously in the Senate Jobs and Economic Development and House Tax Committees was Pat Mascia, Senior Vice President-Minneapolis/Saint Paul Operations, Duke Realty, along with Doug Fulton and Steve Wise, President of Cass Screw Machine Products in Brooklyn Center.
(posted 2-23-12)
- From the Director: Returning to Our Transparency Roots
Based on current policies and historical trends, city expenditures are expected to grow at a 5.5% annual rate through 2025 a whopping 49% faster rate than city revenues, according to the League of Minnesota Cities.
And the first two questions of every newly involved citizen should be, “just what expenses are growing and exactly why are they growing so fast?”
“One of my public policy heroes, Dr. John Brandl, commented long ago that ‘government organizations and the people in them can be entirely devoted to serving the public. They can also be self-serving, putting the convenience of the organization and its employees ahead of the interests and needs of its citizens.’”
Read more.
(posted 2-23-12)
- Property tax system needs reform, not quick 'fixes'
Column from Eric Wieffering on the phase out of the state general property tax.
“Minnesota’s property tax system doesn’t need to provide relief for one particular group. It needs real reform, and our best hope for that may come from the property tax working group. Its recommendations are due a year from now. Until then, let’s resist the urge to bolt on any more ‘fixes.’”
Read more. (Star Tribune, February 18, 2012)
(posted 2-23-12)
- The Fiscal Disparity debate will be heating up again.
Read the recent Star Tribune article, "Tax-share program receives scrutiny," from January 31, 2012. A study of this program was required by 2010 laws and conducted by TischlerBise.
The study provides information and analysis on:
- Growth trends in the Twin Cities metro region;
- Fiscal and economic conditions in the region;
- The basics of the Fiscal Disparities program, including what has been said about it in the past and today, what the trends have been regarding the program’s impact on taxes and what the changes would be if the program were eliminated;
- The potential “overburden” on jurisdictions cities, counties, schools from different types of land uses both under the current taxation system (with Fiscal Disparities) and a hypothetical scenario if the program were eliminated; and
- Major policy considerations addressing criticisms, issues and praise for the program.
Here are links to all aspects of the study:
- The amount and number of development fees-especially park dedication fees-were identified as they issues by the Land Use Sub-Committee.
Read more about their discussion.
(posted 2-16-12)
- Changing the rules, mid-game
Land use spat pits developers against cities, environmentalists against business
Imagine you’re a business owner, looking to construct a new building on property you’ve owned for many years. You spend several months and tens of thousands of dollars planning it. Finally, you submit your land use application to the city.
Then you find out there’s a problem. Someone on the city council doesn’t like your project. They vote to adopt a one-year moratorium on new land uses, and while it’s in effect, they change the land use regulations so that your building can never be built.
Does this seem fair to you?
Rep. Mike Beard (R-Shakopee) sponsors House File (HF) 389 which would severely limit the abilities of cities, counties and townships to adopt what are known as “interim ordinances.”
Sen. Warren Limmer (R-Maple Grove) sponsors the Senate companion, Senate File (SF) 270.
Read the article. (Session Weekly, February 3, 2012)
(posted 2-16-12)
- Star Tribune Editorial Board comes out in favor of the phase out of the state general property tax
We are working on many fronts and in many ways to support legislation to phase out the state general property tax. However, we're going to need everyone's help to get it done. So when asked to communicate with your legislator or the governor, please do so.
Editorial: GOP has a better business tax idea (Star Tribune, February 5, 2012)
- “Republican legislative majorities say now's the time to begin a multiyear teardown of the 11-year-old statewide business and seasonal-recreational property tax.”
- "Dayton would do well to give the GOP alternative serious consideration.”
However, Governor Dayton has a different proposal. (Star Tribune, February 5, 2012)
- "After the disastrous first two weeks of the 2012 legislative session and another recital of business complaints, this session already feels the same as the last one. If those tactics and attitudes continue, there is little to look forward to."
- "Bipartisan 'Jobs Now' legislation should be the Legislature's top priority. Other bills can wait until we have done our job to help put Minnesotans back on their jobs."
(posted 2-16-12)
- Help Minnesota residents see what drives public cost increases
The St. Paul Pioneer Press editorial board supports NAIOP Minnesota’s transparency initiative.
“A bill in the Minnesota House ... helps understand better what’s driving costs higher and could change taxpayers’ ‘why bother’ attitudes.”
This supportive editorial is based on interviews with Paul Reinke, Senior Director Development at Haugland Company, Oakdale City Council Member and NAIOP member; Rep. Keith Downey of Edina, chief author in the House; and Kaye Rakow, Director of Public Policy NAIOP Minnesota.
Some highlights from the editorial:
- Rep. Downey: "We need to understand the spending behind tax increases to understand what can be done."
- Paul Reinke: “With good information, ‘citizens can plug in constructively and help us’ serve the needs of the community.”
- “Property taxes are an issue of deep concern for local businesses, and we appreciate the work done by the Minnesota chapter of the commercial real estate organization NAIOP and the Minnesota Taxpayers Association.”
Read the editorial.
(posted 2-1-12)
- The GOP and the DFL have declared job creation as their number one priority of the 2012 session. While they share that goal, they differ in their approaches.
- Senate Tax committee chair Julianne Ortman and House Tax committee chair Greg Davids are united behind a push to phase out the State general property tax in the 2012 session.
Read the Finance & Commerce article, “GOP seeks phase-out of business property tax”
Finance & Commerce, January 18, 2012
Bills to phase out the state general property tax were introduced last week. NAIOP will be offering testimony in favor of the bill in front of the Senate Jobs and Economic Growth Committee.
- NAIOP Minnesota's 2012 Property Tax Talking Points
For Minnesota’s thousands of job-creating small businesses, our dozens of Fortune 500 employers, and our tens of thousands of entrepreneurs innovating and working to build a brighter economic future...
--COSTS MATTER--
...and the costs that matter most are the fixed costs they cannot control, such as the property taxes they must pay on the buildings they own or in which they lease space to office or operate. Read more.
(posted 1-27-12)
- NAIOP Minnesota’s transparency initiative
Developed by the Nexus Task Force, NAIOP Minnesota’s transparency initiative requires local units of government to report certain cost drivers in their budgets, and has been adopted and made a part of the House majority Reform 2.0 initiative.
Read the Reform 2.0 highlights.
A separate bill, HF 1954, has been introduced on NAIOP’s transparency initiative. This bill requires counties and certain cities to report additional budgetary information.
Read the bill.
(posted 1-27-12)
- With all of the energy and information available, shouldn’t it be easier to understand the who, what and why of property taxes?
According to Jim Mulder, retired executive director of the Association of Minnesota Counties, and the Independence Party’s candidate for lieutenant governor in 2010, the entire tax system needs to be redesigned.
Your property-tax calculation is here
Star Tribune, January 14, 2012
(posted 1-24-12)
- “A Worse-Case Scenario”
If Minnesota’s pension plans assumed an 8% return instead of an 8.5% return over the “forever” timeline, the biggest three statewide pension plans would immediately report an additional $2.9 billion in unfunded pension liabilities.
Read more about the status of Minnesota’s public pension fund obligation and the necessary elements for reform.
By Mark Haveman, Minnesota Taxpayers Association (MTA)
MTA is NAIOP Minnesota’s research partner for the Nexus Project.
Star Tribune, January 22, 2012
(posted 1-24-12)
- Metropolitan Council offers grants for Transit-Oriented Development (TOD)
The purpose of this new program is to assist Livable Communities participants to implement transit-oriented development that demonstrates how increasing density around transit stations can reduce dependence on automobile ownership, vehicular traffic, and associated parking requirements that would otherwise be necessary to support a similar level of more traditional development, and encourage more transit ridership. Building on prior regional public investment in its transit infrastructure, the Metropolitan Council is requesting proposals for development sites that are located in the following areas:
- Within a DEED designated Transit Improvement Area (TIA) or area eligible for TIA designation.
- Within a one-quarter mile radius along designated high frequency local bus lines.
- Within a one-half mile radius of a bus stop or station on designated high-frequency express routes.
- Maps of eligible areas
More information about TOD grants
Applications for this first funding round are due February 15, 2012.
(posted 1-24-12)
- A Message to Governor Dayton and Minnesota's Legislators
- “As we listen to our tenants every day, one message remains constant: costs really matter to them…and new, friendlier policies regarding business property taxes and regulation would go far in assuring their success and speeding Minnesota’s economic recovery, especially with regard to employment.”
- Impact of Market Value Exclusion on C/I Property Tax Burdens in the Metro Area
The average change in C/I property taxes payable is 1.71% or $1,842 for the hypothetical $3,000,000 C/I property. Increases range from a low of $930 to a high of $4,900. On a percentage basis, increases range from 0.88% to 4.51%.
These numbers are based on the following assumptions:
- No levy increases over payable 2011.
- No changes to distribution of tax burden due to market-based valuation changes across property types.
- Gary Carlson, director of intergovernmental relations for the League of Minnesota Cities, said the effects of the switch to the market value exclusion system will vary from city to city. But in general, he said, communities with many lower-value homes and small commercial-industrial bases will see the biggest tax shifts to commercial properties.
See the chart prepared by the Minnesota Taxpayers Association showing the impact based on a $3million C/I property for selected metro area cities.
(posted 1-12-12)
- More on the Impact of the New Market Value Exclusion Law
“As a result of this exclusion, a bigger share of the property tax burden in many cities is falling on owners of office and retail buildings who in turn pass along the tax increases to their tenants.”
Pat Mascia, Senior Vice PresidentMinneapolis/St. Paul Operations, Duke Realty, 2012 President, NAIOP Minnesota
Read the full article from the Star Tribune, January 6, 2012.
(posted 1-12-12)
- “What NAIOP is proposing in terms of legislation requiring cities of a certain minimum size to apply object code breakouts to their spending reports is really key.”
Representative Keith Downey, House District 41A, Edina.
Read about Representative Downey’s conversation with NAIOP Minnesota’s public policy committee at a recent meeting.
(posted 1-12-12)
- Have you found yourself complaining about the quality of candidates running for office?
Have you found yourself complaining about the direction your political party is taking?
Attend your precinct caucus on February 7, 2012.
Precinct caucuses are meetings organized by Minnesota’s political parties to begin the process of selecting candidates for the 2012 election and policy positions to shape the party platform.
Who can attend a precinct caucus and what do attendees do at these caucus meetings?
Precinct caucus locations will be available soon; check back for details.
(posted 1-12-12)
- Will Pension Plans Run Out of Money?
A new research report using GASB proposed metrics reveals risks of “depletion”
“…The burden of proof now empirically resides with the elected officials and these plans’ officials to show that they have a strategy in place (or at least underway) to put their house in order.” The Minnesota Teachers fund is included in the list.
This demonstrates the need for greater transparency in local budget reporting in Minnesota.
Read Girard Miller’s article from Governing.com, December 8, 2011.
(posted 1-12-12)
- A report released in November suggested that Hennepin County fix a “piecemeal” system of watershed management in order to simplify the current water governance structure.
The Minnesota Center for Science, Technology and Public Policy (CSTPP) made the following recommendations to the Hennepin County Board of Commissioners on November 3, 2011:
- Consolidate the 11 existing watershed districts and water management organizations into 4 divisions based on hydrological boundaries.
- Grant taxing authority to all water organizations in Hennepin County.
- Improve coordination of water management planning between watershed districts/water management organizations and cities.
- Implement coordination, oversight or enforcement between watershed organizations and the state.
Read the full report.
(posted 1-12-12)

(posted 12-20-11)
- For NAIOP Members who have asked for clarification on the new Medicare tax on “unearned” net investment income
Beginning January 1, 2013, a new 3.8 percent tax on some investment income will take effect. Since this new tax will affect some real estate transactions, the National Association of Realtors (NAR) has prepared materials to clarify the new tax.
Understand that this tax WILL NOT be imposed on all real estate transactions, a common misconception. Rather, when the legislation becomes effective in 2013, it may impose a 3.8% tax on some (but not all) income from interest, dividends, rents (less expenses) and capital gains (less capital losses). The tax will fall only on individuals with an adjusted gross income (AGI) above $200,000 and couples filing a joint return with more than $250,000.
NAR frequently asked questions
Examples of different scenarios in which this new tax applies
(posted 12-20-11)
- The 8.5% dilemma
Minnesota’s current 8.5% annual assumed rate of return on pension fund investments in the highest in the nation, according to a public fund survey conducted by the National Association of State Retirement Administrators. Last fall the Minnesota Pension Commission heard extensive testimony on whether the current 8.5% is too optimistic and what the implications would be if this assumption was lowered.
How big of a deal would this be?

MSRS: Minnesota State Retirement System
PERA: Public Employees' Retirement Association
TRA: Teachers’ Retirement Association
It is only in pension finance that the discount rate for a liability is based on the expected return. Not in banking, not in investment banking, not in project finance, not in home mortgages of consumer financeand not in government finance. No one else; nowhere else; nothing else.”
--M Barton Waring, Pension Finance: Putting the Risks and Costs of Defined Benefit Plans Back Under Your Control
Read more from the Minnesota Taxpayers Association on page three of their Fiscal Focus, November-December 2011, Volume XXXVII No. 6
(posted 12-15-11)
- New Laws Effective January 1, 2012
Source: Minnesota House of Representatives, Public Information Services
(posted 12-15-11)

On September 2, 2011, the Federal Transit Administration (FTA) granted approval to begin preliminary engineering (PE) on the region’s third light-rail transit project, the Southwest Corridor. The FTA blessing represents a significant step toward winning federal matching funds and building the 15-mile LRT line between downtown Minneapolis and Eden Prairie.
Speaking to a standing-room only crowd, Hennepin County Commissioner Gail Dorfman and Patrick Connoy, Hennepin County Community Works and Transit Department, addressed the Public Policy committee and answered questions of particular interest to NAIOP members in regards to the Southwest Corridor, including:
- What are the possible development opportunities along the line?
- Why is the building of this line important to the region, economic development, over all transportation plan, etc.?
- Where will the money come from for the capital costs of the line?
- What are the anticipated operating costs and what are the proposed sources of that money?
- Is anticipated that value capture methods or money from TIF districts will be used for any part of the financing? If so, how will that work? What approvals are necessary?
- What are political, financial, and other challenges at this time and moving forward?
Click here to download materials addressing many of these questions.
(posted 12-2-11)
- On the Frontlines at the Capitol for NAIOP Members and their Business Tenants
Early in the session, Senator Geoff Michel, district 41/Edina, introduced a bill to reduce and ultimately phase out the state general property tax on business properties, a remarkable change in legislative tenor in and of itself.
- Senator Michel immediately called NAIOP, as the first line of defense for business property taxpayers at the Capitol, to arrange solid supportive testimony for his bill.
- NAIOP turned to Pat Mascia, whose testimony was “an important step in the demonstrating to many legislators the serious impact of property taxes on Minnesota businesses’ ability to compete and create jobs.”
On behalf of all NAIOP members and business property taxpayers, we would like to acknowledge Pat for his dedication and advocacy. Read more.
(posted 12-2-11)
- Greater MSP CEO Michael Langley Briefs Public Policy Committee on Plans, Invites NAIOP to Serve on Group’s Advisory Council
With an annual budget of $5 million (most coming from the private sector), Greater MSP’s charge is to recruit new companies to the 13-county region’s “economic ecosystem,” while encouraging those already located here to stay and expand.
New Image for the Twin Cities: Prosper
Star Tribune, October 11, 2011
(posted 10-12-11)
- Business Group Calls for More Transparency in Local Tax Data
Kaye Rakow, Director of Public Policy, made a presentation to local business and government leaders in Willmar on NAIOP’s transparency proposal. A recap of the presentation was on the front page of the West Central Tribune the following day. The article captures the essence of our transparency proposal.
West Central Tribune, September 23, 2011
NAIOP members get the opportunity to see our transparency presentation on Thursday, November 10 at 7:45 am. Details to follow in future Universe This Week emails.
(posted 10-6-11)
- Snapshots: 2011 Legislative Session
- Local view: Share government spending information with taxpayers
“I realize property taxes are essential in delivering the local services we all need and want. I also fully recognize the serious nature of our city’s financial problems and the need to find ways to solve them. But our year-after-year increases in property taxes when property values, both commercial and residential, continue to fall, frankly, baffle me. As a taxpayer, I find it increasingly difficult to find out what these higher tax payments are actually buying for Duluth’s residents. Without having that information, it’s becoming harder and harder to sympathize with local officials when they call for even more revenue because of higher costs, even though inflation is flat and has been for several years."
Bill Wilson of Duluth is an investor and the owner of several commercial properties.
Duluth News Tribune, September 4, 2011
Read the article.
(posted 9-7-11)
- More useful government spending reports needed
“To intelligently cope with the influence of spending on property taxes, taxpayers must be able to quickly and easily understand the cost drivers behind local government spending. Financial reporting by object code would provide greater spending transparency for taxpayers."
Dee Schutte is the executive director of the Litchfield Chamber of Commerce.
Crow River Business, September 2011 edition
Read the article.
(posted 9-7-11)
- Rep. Linda Runbeck: Standardized reporting needed for property taxes/Legislator Lingo
“What are the cost drivers that are constantly increasing property taxes? What stands in the way of taxpayers addressing the spending issues at the local level? A “transparency” proposal from the folks at NAIOP (commercial property owners) points to some answers."
PressPubs.com, August 16, 2011
Read the article.
Read the transparency proposal.
(posted 8-19-11)
- Our view: Minnesota failing to make grade on transparency
“As Minnesota rebounds from their budget crisis, they need to put a priority on making their government more transparent and accountable to the people,” according Michael Barnhart, president of Sunshine Review, a nonprofit, nonpartisan, pro-transparency group.
Duluth News Tribune, August 8, 2011
Read the article.
(posted 8-9-11)
- "Cities of every size, in every region, will be broke by 2015..." according to a 2010 report by the League of Minnesota Cities.
See a simple flyer on object code reporting.
(posted 8-8-11)
- It's time for more useful government spending reports
"To intelligently cope with the influence of spending on property taxes, taxpayers must be able to quickly and easily understand the cost drivers behind local government spending. Financial reporting by object code would provide greater spending transparency for taxpayers."
Dee Schutte, executive director of the Litchfield Chamber of Commerce, writing in the Litchfield Independent Review, on July 28, 2011.
Read the article.
(posted 8-1-11)
- Your Turn: Details help taxpayers identify costs
“Property taxes are necessary to maintain local services, but taxpayers should be able to clearly understand what our money is buying.”
Mike McDonald of St. Joseph, MN, writing in the July 9, 2011 St. Cloud Times in support of NAIOP’s Object Code Reporting proposal.
Read the article.
(posted 7-21-11)
- Joe Weis: What is your property tax money actually buying
NAIOP and MTA believe reporting spending by object code would also greatly improve the quality of public debate over all spending and taxing decisions, eliminating the finger-pointing and blame passing that has dominated public discussion in the past.
Read the commentary by Joe Weis, Weis Builders.
Read more about standardized object code reporting.
Rochester Post Bulletin, June 23, 2011
(posted 6-23-11)
- Minnesota House of Representatives announces new laws effective July 1, 2011
Laws passed include the areas of agriculture, education, environment, and public safety.
Read a quick summary of the laws.
(posted 6-23-11)
- Sewer Access Charges (SAC) Working Group
John Ryden, Senior Vice President at CB Richard Ellis and Gary Lally, Senior VP of Development at Hoyt Properties, have agreed to represent NAIOP members on a SAC (Sewer Access Charges) working group.
The Association of Metropolitan Cities and the Met Council environmental services plan to convene an informal working group to discuss issues related to SAC charges applied at the time of retrofitting space or redeveloping property. In addition to Messrs Ryden and Lally, there will be representatives from cities, the St. Paul Port Authority, the Met Council, and the general business community. Please contact either Mr. Ryden (john.ryden@cbre.com or 952-924-4641) or Mr. Lally (garyl@hoytproperties.com or 612-746-5021) if you have any pearls of wisdom for them when representing building owners on this working group.
Background
SAC applied by the Met Council Environmental Services (MCES) at the time of retrofitting space or redeveloping property have been causing a lot of frustration and confusion among NAIOP members.
They have expressed a notable change, an inconsistency in the way charges are currently being implemented and a significant increase in cost.
Read about the problem, the impact for the commercial real estate industry, and a quick summary of how the MCES operates.
From the conversation with Jason Wilette, finance director for the Met Council's Environmental Services, at the May 5th Public Policy Committee meeting.
Issues related to SAC will also be discussed at the Met Council Industrial Waste Customer Forum
The main topic: Met Council Environmental Services (MCES) rates and Industrial Rate System information
Tuesday, June 21, 2011
8:00-9:30 a.m.
MCES meeting room at the Metro 94 Business Center, 455 Etna Street, Suite 32, St. Paul
RSVP: 651-602-4711
Read the full meeting notice
(posted 6-20-11)
- NAIOP Minnesota wants to acknowledge and thank Twin Cities Business and Dale Kurschner, Editor in Chief, for supporting our efforts on government transparency.
Past TCB coverage of our initiative includes:
- Goal to Uncover the Drivers Behind Property Tax Rates
“While taxpayers, including businesses, and elected officials can debate the proper levels of taxes, having a good understanding of the ways in which tax dollars are spent should be an idea on which all sides agree.”
Big Fat Finance Blog, Karen Kroll, June 1, 2011
Writing about NAIOP Minnesota’s transparency project and OpenGovernmentMN.com
(posted 6-8-11)
- Is Tax Relief Still a Possibility?
“Real estate industry backers were rewarded with a receptive audience at the Capitol. For the first time most legislators largely agreed the general levy not only shouldn’t be raised, but indeed be rolled back.” Kaye Rakow, NAIOP Minnesota and Rich Forschler, Faegre Benson talked with MNCAR members.
Read the recap article in the business section of the Star Tribune, June 6, 2011 by Don Jacobson
(posted 6-8-11)
- The Sunlight Weekly Roundup in Washington, DC, writes on NAIOP’s transparency initiative
“There is a group improving local government transparency in Minnesota by pushing for standardized financial reporting with details of the state’s spending including public officials’ salaries and expenses. OpenGovernmentMN.com is proposing a business-like approach “Object Code”, to provide access to data that can be used to create an open public discussion.”
Read the article.
(posted 6-8-11)
- Dissecting city spending
I don’t think I’m unique in not recalling a single time when my tax statementwhether the value of my home was up or downdid not call for more money than I paid the year before … my puzzlement over what caused those constant increases was shared by my equally baffled neighbors. When we asked our elected officials, we were greeted with the usual finger-pointing: the city blamed it on cutbacks in state aid, the state fingered the city for excessive spending. As a result, taxpayers have great difficulty understanding what underlies local spending decisions, including what is mandated by state and federal governments and what local government can control itself.
Read the commentary by Michele Foster, Foster Real Estate Services.
Read more about standardized object code reporting.
SouthWest Journal, May 2, 2011
(posted 5-3-11)
- More details, more power to the people
Property taxes are necessary, hard to fathom and sometimes painful to pay. They can increase when our property values go down? And the opposite can also be true? Say what?
Hard to fathom is right. But one constant in property taxes is spending by local governments the cities, counties and school districts whose levies make up most of the property tax bill. Keeping a foot on the brake of local spending is one important way to keep property taxes within reason.
Pioneer Press, April 27, 2011
(posted 5-3-11)
- 50-State Property Tax Comparison Study
The Minnesota Taxpayers Association just updated their 50 state property tax rankings for payable 2010. Again, their study continues to show a high burden for business properties in Minnesota. A couple of key findings from that report for business property taxes include:
- Homestead taxes remain modest compared to neighboring states and are below the national average.
- Urban and rural $25 million commercial properties and rural $1 million commercial properties are all still ranked well within the top 10 nationally.
- Industrial burdens generally range from 10% below national averages to 20% above national averages depending on property values and location within the state.
- And, even though commercial properties in Minnesota have experienced significant competitive improvement since 1995, when comparing three different property values of commercial buildings in Minneapolis, property taxes payable are still 12-44% above the national average. When comparing three different property values on commercial buildings in Glencoe, property taxes payable are 19-54% above the national average.
(posted 4-29-11)
- Minnesota Organizations Push for Transparency in Government Spending
NAIOP Minnesota, the Minnesota Taxpayers Association, and the Minnesota Chamber of Commerce plan to draft legislation requiring all government entities to use the same structure to report how they budget and then spend taxpayer dollars.
Twin Cities Business, April 19, 2011
(posted 4-20-11)
- Minnesota Senate passes a cut in business property tax bills
Ending state tax would return $700M to payers; odds of passing slim.
Finance & Commerce, April 6, 2011
(posted 4-18-11)
- Q: What does greater transparency in government spending have to do with property taxes?
A: Everything!
It's time to unveil the drivers behind the rising cost of public services and the demand for increasing local tax revenues.
Read more.
Transparency Proposal Talking Points for NAIOP members
Transparency Proposal FAQ
Transparency Proposal Press Release, Initiative to Spur Greater Transparency in Local Government Spending Launched by NAIOP Minnesota
Ultimately local government spending drives property tax levies and, in turn, property taxpayers’ bills. This is the most influential piece of the property tax system. It is also the most important andin many waysthe most challenging element for taxpayers to understand.
(posted 4-11-11)
- NAIOP introduces OpenGovernmentMN.com
OpenGovernmentMN.com has been established as an online resource and central repository of research, news and other information useful in informing Minnesota taxpayers and encouraging public debate and involvement.
(posted 4-11-11)
- Report finds the cost of providing government services should be reformed.
The research provided in NAIOP’s Compensation report is presented by the Minnesota Taxpayers Association (Aaron Twait) at a forum organized by the Willmar Chamber of Commerce. “This is not a public employee bashing exercise”, said Twait, as a preface to his summary of the study, which was funded by the Minnesota Chamber of Commerce and NAIOP Minnesota, the commercial real estate development association. But Twait said fringe benefits, like public pensions and health benefits that have “exploded” in the past decade need to be reformed. Published in the West Central Tribune on Saturday, April 2, 2011.
(posted 4-8-11)
- Local government aidrules flow in, money flows around.
The time for political posturing is long gone, and it is time for people to get to work on the real issue: What does government really need to do at each level? And, when we get that figured out, what is the fairest way to pay for it? Appearing in the Star Tribune on March 16, 2011.
Read more.
- Steven Dornfeld: Local government aid counterpoint. Republican state lawmakers have proposed slashing the 40-year-old program of state aid to Minnesota cities, while DFL Gov. Mark Dayton wants to preserve the status quo. Nobody seems to be talking about a more thoughtful and constructive optionredesigning the program to make it more equitable, efficient and effective.
(posted 3-24-11)
- A myth-busting look at property taxes.
Think local levies punish mainly outstate regions and central cities, leaving suburbs unscathed? New data could make you think again. Appearing on the front page of the Opinion Exchange section of the Star Tribune, Sunday, March 6.
Read more.
- Monthly columns in Finance and Commerce and Capitol Report feature topics raised by research managed by NAIOP Minnesota’s Nexus Task Force (NTF) and conducted by the Minnesota Taxpayers Association (MTA). These columns are orchestrated by NAIOP Minnesota and authored by Mark Haveman, MTA.
Read the February column, Claims of a property tax crisis outstate may be overblown, appearing in the February 11th issue of Finance & Commerce.
The ability to pay taxes is a function of how the economy is doing, and at least in some outstate areas, communities have appeared to weather the recession reasonably well. Department of Revenue data indicates that from 2008-2010 representing the heart of the Great Recessiontotal commercial and industrial property values fell by over $3.2 billion just in Hennepin County alone. Commercial-industrial property values in Anoka, Washington, Dakota, and Ramsey counties declined by an additional $1.7 billion. But 54 of Minnesota’s 87 counties experienced commercial-industrial property value increases during this period and 13 counties actually experienced double digit growth. This is important because Minnesota businesses are finding themselves in the political crossfire on the controversial issue of aids to local governments.
(posted 2-24-11)
- What’s in your budget? We need to better understand how government is spending our money.
Imagine, the ability to easily understand how your taxes are being spent and how those using them are being held accountable. But the efforts by NAIOP, MTA, and the chamber at least point us in the right direction.
Read more.
(posted 2-24-11)
- An alert to NAIOP members:
For release from the Nexus Task Force on February 15, 2011:
the Open Government in Minnesota Report
The many publications and resources designed to help taxpayers navigate and understand Minnesota’s property tax system do a great job of discussing the interconnected pieces of the system and how they work. But the most influential part of the property tax system is local government spending. It ultimately drives property tax levies, and in turn, property taxpayers’ bills.
This 16 page report examines the issues impacting the ability of property taxpayers to make informed judgments about local spending and the use of their property tax dollars and identifies three requirements to enhance those judgments.
Read more
(posted 2-15-11)
- Orchestrated by NAIOP’s Nexus Task Force and authored by Mark Haveman was the headlining commentary from the Opinion Exchange section of Sunday, January 30th’s Star Tribune. Material for this article was taken from the Minnesota Public Sector Compensation Report, released by the Nexus Project in December.
Read commentary: To Break the Cycle of Failed Government Reform, Address Civil-Servant Productivity
Public-worker pay is disconnected from results. Without change, we consign ourselves to lower services, higher taxes, or both.
(posted 2-4-11)
- Applause for bill to limit business property tax and bipartisan support on plan to reduce ‘burdensome’ levy.
“The proposed reduction in state property taxes was hailed by the Commercial Real Estate Development Association."
Read the article on Senate File 1, appearing in Finance and Commerce on February 2nd.
Read the bill.
(posted 2-4-11)
- Senate File 1 reduces the State General Property Tax to 2009 levels and eliminates the automatic annual increase
As a point of reference, the State General Property Tax has increased by 34% since the first year payable, 2002. For taxes payable 2011, the tax will raise $795 million for the state general fund. If passed, the amount payable will be fixed at $757 million beginning in payable 2012. As in current law, of the total amount, 95% ($717 million) will be paid by C/I properties and 5% ($40 million) will be paid by seasonal recreational properties.
See the history of the State General Property Tax Levels (2002-2011).
Authored by Senators Amy Koch and Geoff Michel, the bill also reduces the corporate income tax by 50% over the course of six years, provides for more efficient DNR permitting and modifies environmental review requirements. The biennial cost of the bill is roughly $200 million.
Read the bill.
(posted 1-11-11)
- Monthly columns in Finance and Commerce and Capitol Report feature topics raised by research managed by NAIOP Minnesota’s Nexus Task Force (NTF) and conducted by the Minnesota Taxpayers Association (MTA). These columns are orchestrated by NAIOP Minnesota and authored by Mark Haveman, MTA.
Read the January column, Property owners see shifting tax burdens during recession, appearing in the January 5th issue of Finance & Commerce.
The basic math of classification causes commercial taxable value to rise faster than residential taxable value in good times but fall faster in bad times, putting pressure on homeowners’ property taxes.
(posted 1-7-11)
- Department of Revenue (DOR) announces a 2.6% increase in the State General Property Tax, a property tax paid to the state by business and cabin properties, only.
- A chart showing the history of increases in the state general property tax - a 34% increase since 2002.
- The DOR's calculation of the state general property tax.
(posted 12-14-10)
- Released to the General Media on Thursday, December 9
Discussions over the cost of government swiftly move to the cost of labor, as government at all levels is a labor intensive enterprise. NAIOP Minnesota partnered with the Minnesota Chamber of Commerce to produce the study, Minnesota Public Sector Compensation, the first report which examines state and local government employee compensation levels and design. The research was conducted by the Minnesota Taxpayers Association.
Read the press release, report and highlights.
(posted 12-9-10)
- Monthly columns in Finance and Commerce and Capitol Report feature topics raised by research managed by NAIOP Minnesota’s Nexus Task Force (NTF) and conducted by the Minnesota Taxpayers Association (MTA). These columns are orchestrated by NAIOP Minnesota and authored by Mark Haveman, MTA.
Read the December column, Transparency in Budgeting: "More than Just a Data Dump," appearing in the December 2nd issue of Finance & Commerce.
Truth in taxation statements, just delivered to property owners across Minnesota, are undoubtedly triggering shock and frustration. The shock comes from the numbers they contain; the frustration comes from the absence of any information on just why taxes are going up.
(posted 12-3-10)
- NAIOP’S Greg Munson Part of Planning Task Force for Innovative MnDOT/DEED Transportation Economic Development Program
An innovative pilot program that will make $39 million available to Minnesota communities for highway improvements and public infrastructure projects that support economic development, road improvements and job creation has been launched jointly by the Minnesota Department of Employment and Economic Development (DEED) and the Minnesota Department of Transportation (MnDOT). Read more.
More information about the TED program, including the solicitation and application forms, is available at http://tinyurl.com/PositivelyMinnesotaTED.
(posted 11-9-10)
- Monthly columns in Finance and Commerce and Capitol Report feature topics raised by research managed by NAIOP Minnesota’s Nexus Task Force (NTF) and conducted by the Minnesota Taxpayers Association (MTA). These columns are orchestrated by NAIOP Minnesota and authored by Mark Haveman, MTA.
Read the November column, Public-sector management needs private-sector tactics, appearing in the November 4th issue of Finance & Commerce.
Cost and competitive pressures have forced private-sector organizations to jettison hierarchical, bureaucratic workforce-management practices and rethink compensation systems. But public sector human resource systems are still highly command and control oriented …
(posted 11-5-10)
- A Counterpoint to Council Member Betsy Hodges’ commentary
Minneapolis Council Member Betsy Hodges’ commentary (Oct. 4th) attributes part of the increases in homeowners’ property tax bills to “disproportionate” relief granted to business property owners by the Legislature.
Read Mark Reiling’s letter to the editor, appearing in the November 1st issue of the SouthWest Journal.
(posted 11-1-10)
- 2011 Business Day at the Capitol
Save the date!
Wednesday, March 16
Crowne Plaze, St. Paul Riverfront
(posted 10-25-10)
- We’ve dug ourselves into a really big hole
That’s Legislative Auditor James Nobles’ take on the state’s pension system. How did it happen? And how long a ladder might taxpayers need to provide?
Read article published in Twin Cities Business, November 2010 edition.
Thanks to the ground work laid by the Nexus Task Force, NAIOP was able to arrange for this article to be written and placed in Twin Cities Business.
(posted 10-20-10)
- Dave Sellergren hangs up his jersey as chair of the Land Use Subcommittee...
Dave Sellergren, Fredrikson & Byron, has played the role of smart policy analyst and wise advisor to a succession of chapter presidents and public policy committee chairs. According to one past president, "Dave was able to take complex legislative language, think it through, eliminate the junk, and fluff, and tell us how it might affect us in the commercial real estate development industry."
....while Brian McCool and Greg Munson step up to fill the big shoes he left behind.
Brian McCool, Fredrikson & Byron, is particularly concerned about what he describes as the unpredictable "fallout" from the state's fiscal crisis, which would have an impact on land use. "We can expect a variety of new or increased regulatory costs, like impact fees, storm water fees, the costs of new infrastructure, as well as new approaches to 'smart growth' to be imposed directly on developers and their projects."
According to Greg Munson, McGough Development, continuing issues must be monitored closely-particularly the planning of infrastructure by the Met Council and new sources and levels of transportation funding, "because of the close way in which transportation and land use are intertwined."
Read interviews with these illustrious NAIOP leaders.
(posted 10-15-10)
- NAIOP commentaries in Star Tribune and Finance & Commerce
We were successful in placing two commentaries authored by Mark Haveman, Minnesota Taxpayers Association.
- Local Government Aid: There’s a Catch. “It creates perverse incentives. It goes to the wrong places and pays for the wrong things. And we can’t afford it.” Star Tribune, Wednesday, October 6, 2010
- Redesigning State Government Isn’t Easy. “Will our legislators and our next governor have the political courage to take on the serious public administration reforms needed to allow government redesign to thrive and prosper?” Finance and Commerce, Wednesday, October 6, 2010
(posted 10-15-10)
- As if the terrible state of the economy were not enough, a recent decree on the granting of variances has heaped additional fuel on the already stressed state of commercial and residential real estate development in Minnesota.
Linda Fisher, Larkin Hoffman, has agreed to represent NAIOP members in the coalition assembled by the League of Minnesota Cities to "fix the situation."
From the League of Minnesota Cities:
Supreme Court Decree on Variances is Confusing to Developers
(posted 10-15-10)
- Is it true that Grandma will have to pay a 3.8% tax when she sells her house?
This rumor is floating around concerning one of the provisions of the recently passed Health Care bill. Grandma will not have to pay a 3.8% tax when she sells her home. However, the new 3.8% tax does apply to "unearned income" for individuals making $200,000 plus or couples making $250,000.
According to Toby Burke, NAIOP Corporate, "The implications of this new tax as part of the health care bill are still being reviewed."
- The Changing of the Guard
Thank you Pat Mascia, Senior Vice President, Twin Cities Operation, Duke Realty, for chairing the public policy committee for a two-year term. "We have been focusing our attention, over the past two years, on positioning ourselves for the battle ahead. We've launched the Nexus Project, a big step toward broadening the availability of information available to taxpayers, have proactively created new partnerships, built broader coalitions, and worked hard to make more friends among key legislators."
Stepping in to chair the committee for the next two years is Eric Anderson, Director of Development, Ryan Companies, US, Inc. Anderson agrees that NAIOP should continue to develop "more active partnerships with key legislators. We need to help them begin looking at government differently, focusing on the cost side, on the high degree of duplication of services and bureaucracies at every level--literally turning government on its head."
Replacing Eric Anderson as chair of the Nexus Task Force is Paul Reinke, Senior Director of Development for the Haugland Company. Reinke sees his role as the new leader of the landmark Nexus project as one of "significantly increasing the level of understanding of our members, taxpayers, and policy makers of the realities that drive local government spending decisions."
Read interviews with these three illustrious NAIOP leaders
(posted 10-6-10)
- Will the legislature raise business property tax?
Published in Finance and Commerce, September 9, 2010

Click here to view full chart
Why would legislators single out business owners and their buildings for a big tax hit as part of the budget fix?
The simple answer is that they are politically safe targets. Businesses do not vote. Therefore, some legislators may be eager to turn to the easiest, and politically most safe, solution: let the state’s businesses pick up a substantial portion of the budget shortfall by increasing the statewide “general” tax (a tax paid directly to the state only by businesses, public utilities, and cabin owners) or by upping the classification rate on commercial-industrial properties.
Read full article
(posted 9-13-10)
- If there is an homeowner property tax affordability crisis, it’s much more likely to be in the metro area, not outstate. A recent report by the Minnesota Department of Revenue provides an important perspective on how significant the ability-to-pay problem really is.
Read the latest Nexus Notes from the Nexus Project, written by Mark Haveman, Executive Director, Minnesota Taxpayers Association and appearing in the July 15th issue of Finance and Commerce.
The short article includes a chart comparing homeowner property tax burdens between metro regions and greater Minnesota regions.
(posted 8-10-10)
- NAIOP Minnesota's Nexus Task Force: The Way Forward - Comprehensive Government Redesign
"Government works in a very different way - it is like a dance. 'I will give you what you want, if you give me what I want.' In business, on the other hand, you set an objective, a strategy for achieving it, and the tactics needed to get there. The difference makes changing government really difficult."
- Senator Terri Bonoff meeting with NAIOP's Nexus Task Force
Click Here to read the conversation NAIOP Minnesota had with State Senator's Terri Bonoff and Ann Rest.
(posted 5-21-10)
- State view: Legislators: Please listen
By: Michael Norby, Duluth News Tribune
Duluth news tribune commentary cites NAIOP comparative tax study.
“Legislators in St. Paul have seen this data for years, showing the disparity in business climate. But the graph showing tax burdens really struck me this year.”
Read the full article
(posted 4-13-10)
- Study: Minneapolis is among pricier cities for corporate HQs
Minneapolis' property taxes were the main reason for its relatively high ranking.
Read more
(posted 4-13-10)
- A Conversation with Dr. Cy Smythe
“I believe that real change in how cities and government bodies operate will come, not because of political will, but because they are out of money. That’s the glimmer of hope in all this that we are going to run out of money!”
The Nexus Task Force has a conversation with Dr. Cy Smythe.
(posted 4-13-10)
- Nexus Notes: Public Pensions in Minnesota A Primer for Taxpayers and Policymakers
Among the many challenges facing Minnesota’s policymakers and taxpayers is what to do about underfunded public pension plans. It’s worth taking a closer look at these retirement plans to better understand how they work, their current condition, and the potential costs to taxpayers of repairing them.
Read full report.
(posted 2-18-10)
- Snapshot of 2009 Public Policy Activities, spearheaded by the Public Policy Committee and Chair, Pat Mascia, Duke Realty Corporation. Thank you to the Board of Directors and all NAIOP members who participated and contributed to our success this past year.
(posted 12-8-09)
- "It's ironic that a program (Local Government Aid, or LGA) intended to foster greater equity in local government service delivery across the state creates greater inequity among public employees with respect to health care benefits," notes Mark Haveman, Executive Director of the Minnesota Taxpayers Association. "Based on one year of data, LGA is a far greater determinant of differences in health care benefits than any other revenue source."
Press Release
Full Report
www.mntax.org/cpfr
(posted 6-10-09)
- State Aid to Cities Enables Greater Spending on Employee Health Care Benefits
On June 9, the Minnesota Taxpayers Association release their report, "Health Care Spending By Minnesota's Cities - Costs, Efficiencies, and the Role of Local Government Aid."
- The 2009 Legislative Session: Forschler and Rapp 'Wrap It Up' for the Public Policy Committee
Read a summary of the energetic discussion in front of a standing-room only crowd at the Public Policy Committee meeting on June 4.
(posted 6-10-09)
- “We are entering an area of policy and politics in Minnesota that is absolutely unique.”
--Todd Rapp, Himle Horner
-
“Expect a big fight.”
--Rich Forschler, Faegre & Benson, speaking of the statewide property tax.
On January 8th, Todd Rapp and Rich Forschler led a discussion at the public policy committee meeting on the state budget outlook and the 2009 legislative session.
Read a brief summary of their presentation.
(posted 1-14-09)
- “Minnesota has a long-term structural budget problem, with long term expenditure growth likely to outpace revenue growth.”
--Budget Trends Study Commission Report released on January 12th.
The Budget Trends Study Commission was charged by the 2007 legislature to examine changing demographics and the subsequent fiscal impact on the long-term stability of the state budget. These demographic trends are about to transform Minnesota’s public sector, permanently changing our expectations for economic growth and government services.
Full Report
Executive Summary
(posted 1-14-09)
- Falling Revenues and Higher Spending Drive State Budget Outlook
FY 2010-11 revenues will be 1.8% below levels forecast for the 2008-09 biennium, while current law spending is expected to grow by 6.1 percent over FY 2008-09 levels. Projected expenditures are concentrated in health care programs
Highlights of the November Budget Forecast prepared by Minnesota Management & Budget.
(posted 12-9-08)
- The Election Is Over. Now What?
Read a summary of the lively presentation and discussion lead by Rich Forschler, Faegre Benson and Todd Rapp, Himle Horner, from the Public Policy Committee meeting last week.
(posted 11-11-08)
- Fiscal Rarity
A pioneering system of public financing survives an unusually tough test.
Read Dave Beal's Capital Beat article, written for Twin Cities Business, on the fiscal disparities challenge during the 2008 legislative session.
(posted 11-11-08)
- We are pleased to announce that Pat Mascia, Duke Realty, will take over as chair of the Public Policy Committee when the 2-year term of Steve Schwanke, RLK, Inc. expires on September 1st.
“The greater our focus, I believe the easier it is for us to become involved and the more likely we are to have a significant impact on the course of the debate,” according to Pat. Read more.
(posted 8-4-08)
- Eric Anderson, Ryan Companies, will chair the Economic Development Incentive Task Force established to thoroughly and thoughtfully study the issues surrounding development incentives and subsidies and to help determine the most effective contribution NAIOP can make to the debate. The task force is encouraged to “think big” with a 360-degree perspective in a series of research and study sessions.
Read the executive summary of the project.
(posted 8-4-08)
- Big Challenges Ahead
Obviously, what happens in Washington next year depends on who gets elected. But lobbyists say a few things are certain: A new president will enter with an ambitious legislative agenda and Congress will continue its work on large complicated bills, like climate change.
Read how the K-Street lobbyists are preparing for 2009 on issues such as climate change, transportation, ethics, regulations, and labor protection.
(posted 7-2-08)
- Doug Fulton Named Chair of Minnesota Chamber of Commerce's Transportation Policy Committee
Doug Fulton, currently serving NAIOP’s 1,000 plus members as second vice president, member of its board of directors, and 2010 “president-to-be" has been named chair of the Minnesota Chamber of Commerce’s important Transportation Policy Committee. “With the passage of the landmark transportation funding bill in the 2008 legislature, the focus of the committee will be on the efficient implementation of work and investment in the state’s infrastructure."said Fulton, senior director of Cushman & Wakefield.
Read more about Doug and the work of the MNCC Transportation Policy Committee.
(posted 6-17-08)
- Speaking to the Minnesota Chamber’s transportation committee, on April 14th, Bob McFarlin, Acting Commissioner of the Minnesota Department of Transportation (MnDOT), made the following points concerning transportation funding and HF2800:
- “The nature of HF2800 mandates that the state’s bridges are examined and repaired within 10 years, and also returns MnDOT to bread and butter workpreservation of pavement, preventative maintenance.”
- “Efficiency in transportation means getting to contracts quickly and getting projects done ASAP, not just the amount of construction costs.”
- “HF2800 is going to really, really good things for the state, but setting realistic expectations is very important. There is a lot to invest in but we won’t be able to solve everything for everyone.”
- “We accomplished great things with the 2003 bonding bill and contrary to what some legislators say, the debt from that bonding isn’t an albatross around our necks.”
(posted 4-17-08)
- “The truth is, as a department, we do want to support the economic development of local communities and of the state,” but, in this new reality, “all of us may have to lower our expectations” in terms of highway speed, driving times and congestion.
Peggy Reichert, MnDOT, spoke to the public policy committee at their April meeting.
Click here for a summary of her presentation.
(posted 4-11-08)
- Triple Five Again Seeks MofA Expansion Rebate
(posted 4-11-08)
- "Real estate groups spar with Mall of America over funding"
Article from Minneapolis/St. Paul Business Journal, April 4, 2008
(posted 4-7-08)
- "We respectfully request that legislators oppose the use of the metro fiscal disparities pool to subsidize the MOA Phase II."
Letter from the Citizens League to members of the Minnesota Senate, April 2, 2008
(posted 4-7-08)
- "Spend Smart and Live Within Your Means" message for the state's projected
$935 million budget shortfall.
(posted 3-11-08)
- February 2008 State Budget Forecast for FY 2008-09
Quick snapshot prepared by the CMB (Coalition of Minnesota Businesses)
(posted 3-11-08)
- NAIOP's 3-Point Position on Fiscal Disparities
(posted 3-5-08)
- Chapter Wins Publication of the Year Award
The Minnesota chapter won "Publication of the Year" at the NAIOP Chapter Merit Awards in Washington, D.C. on February 11th for "Family Night at the Movies!".
"Family Night at the Movies!" is a publication detailing how business property taxes are a regressive tax that every Minnesota family pays through the products and services they buy.
Download the full publication
(posted 2-13-08)
- Short Bonding Session to Convene on March 12th Amid Budget Shortfall Concerns
Minnesota Session Preview prepared by Faegre Benson.
(posted 2-11-08)
- Bonding Session? What is a Bonding Session?
(posted 2-11-08)
- “Business seems to be getting a tainted view of the economy from the media reports they read, at the same time that they see their own businesses receiving solid orders and enjoying steady growth.” Toby Madden, Regional Economist for the Federal Reserve Bank of Minneapolis, speaking to a standing-room only group of NAIOP members at the January public policy committee meeting.
Read a summary of Mr. Madden’s comments.
(posted 1-16-08)
- Governor Pawlenty announces 2008 bonding proposal - Transportation/infrastructure accounts for the largest portion of the proposal nearly 40% of the entire package.
Read the key points.
Read the summary of recommended projects
(posted 1-16-08)
- Behind the numbers: A simple one-page look at the November 2007 State Budget Forecast for FY2008-09 (7-01-07 to 6-30-09).
(posted 1-16-08)
- A task force of savvy NAIOP members was formed to develop a policy position on the Fiscal Disparities Program, funded entirely by C-I property taxes in the seven-county area, in preparation for the 2008 legislative session. Read their final report.
(posted 12-11-07)
- NAIOP members in Senate District 60 met with their state legislative delegation: Speaker of the House, Margaret Anderson Kelliher, Senator Scott Dibble and Representative Frank Hornstein.
Read quotes taken from the meeting concerning the Minnesota’s economic climate, the budget, transportation, public pensions, education, government spending, etc
(posted 12-11-07)
- “The business community has a responsibility to get educated and involved in the fiscal disparities debate.”
--Representative Ann Lenczewski, DFL, Bloomington and Chair of the House Tax Committee speaking to the Minnesota Chamber Fiscal Policy Committee on November 1, 2007.
Read a quick snapshot of her comments to the committee.
(posted 11-5-07)
- "Border battle for business is going strong"
St. Paul Pioneer Press, Dave Beal, October 7, 2007
NAIOP's Comparative Tax Study referenced in article.
(posted 10-16-07)
- Clean Water: An Emerging Challenge to NAIOP Developers
Mike Robertson, Policy Consultant on Clean Water to the Minnesota Chamber of Commerce, spoke at the October 1st Public Policy Committee Meeting
(posted 10-16-07)
- Transportation Now A ‘Front & Center Issue’ For NAIOP
(posted 9-11-07)
- Governor Pawlenty continues to hold the position that scheduling a potential special session will be contingent upon detailed agreement being reached between legislative leadership and his office.
Read his latest letter to DFL Legislative Leadership
(posted 9-11-07)
- On August 22, a select group of NAIOP members held a fundraiser for Governor Tim Pawlenty to thank him for supporting our organization and the business community.
View event highlights & photos
(posted 9-4-07)
- Who Says The State Isn’t Spending Enough?
$55.4 billionTotal State Spending For The 2008-90 Biennium
View General Fund spending by department as enacted by the 2007 legislature
(posted 7-17-07)
- Craig Patterson and Kaye Rakow send letters to Senator Coleman and Senator Klobuchar regarding the amendment to the Clean Energy Act of 2007.
Read letter
(posted 6-21-07)
- Statewide, the 2007 taxable market value for commercial industrial properties increased by 11% from 2006 with a property tax increase of 7.3%
Click here for the full report from House Research.
(posted 5-4-07)
- The statewide market value for commercial industrial properties is projected to increase for taxes payable in 2008 by 9.6% with a projected property tax increase of 6.8%
Click here for the full report from House Research.
(posted 5-4-07)
- Letter to NAIOP Members from Governor Pawlenty
(posted 4-5-07)
- "Spend our tax dollars wisely. Pay for those things that work. But stop paying for the things that don't."
Read the complete commentary as published in the Minneapolis Star Tribune on April 3, 2007 by Glen Dorfman, CEO, Minnesota Association of Realtors and Kaye Rakow, Director of Public Policy, NAIOP
(posted 4-4-07)
- NAIOP members joined hundreds of Minnesota business leaders at Business Morning at the Capitol on March 14.
Click here to read comments from the Governor's address.
(posted 3-20-07)
- NAIOP 2007 Property Tax Talking Points
This simple bullet point format makes it easy for you to communicate NAIOP's property tax points to legislators and colleagues.
(posted 3-8-07)
- Minnesotans Believe State Legislature Needs To Spend Smarter And Set Better Priorities, Rather Than Propose Tax Increases
First ever "Citizen Compass," a survey conducted by the Coalition of Minnesota Businesses, identifies property tax relief, local schools and health care as State's key issues.
Cover Memo to State Legislators
Press Release
Executive Summary
Full Report
(posted 3-8-07)
- Spend Smart
NAIOP and the Minnesota Association of Realtors have partnered on the Spend Smart campaign and will be placing ads in targeted legislative districts across Minnesota. Click on the links below to see the ads.
Squeeze every penny out of the surplus. Not the taxpayer.
Spend the $2.2 billion wisely and keep the economy on a roll.
What tax increases will do to the Minnesota economy.
(posted 3-8-07)
- Spend Smart Principles
(posted 3-8-07)
- Defending Eminent Domain article by Susan Feyder from the Minneapolis Star Tribune
(posted 3-9-06)
- NAIOP Minnesota partners with area associations to develop
Ten Guiding Principles of Eminent Domain
(posted 2-28-06)
- Toward a Lean and Less-Mean State Government: Dan McElroy, Senior Advisor on Innovation to Governor Pawlenty, speaks to NAIOP's Public Policy Committee
- Public Policy Committee Announces "Feedback Forum", Real World Experiences from the Leading Edge of Economic Growth, chaired by Peter Kordonowy, Steiner Development.
- Snapshot: State Building Permit Surcharge - A "Hidden" Tax on Minnesota Developers and Businesses
- Snapshot: 2004 Effective Property Tax Rates
- Read the Coalition of Minnesota Businesses 2005 Legislative Wrap Up on Fiscal, Education, and Health Care policies. NAIOP and other CMB members coordinated grassroots efforts on property taxes and other fiscal issues during the 2005 legislative session.
- In the Press David Kordonowy, President, Steiner Development and Jeff Eaton, Senior Vice President of Real Estate Services, United Properties submitted letters to the editor in community newspapers opposing increases to the Statewide Property Tax:
Read Dave Kordonowy¹s letter: "Raising property taxes not the right move"
Read Jeff Eaton¹s letter: "Senate should ax the business tax"
"Getting the Job done-right," Read Representative Barb Sykora¹s editorial in the July 7th issue of the St. Paul Pioneer Press. Refer to the highlighted areas for her response to attempts to increase taxes on businesses, particularly the Statewide Property Tax. Approximately 35 NAIOP members live in Representative Sykora¹s district, (33B) and they have been communicating with her during the legislative session.
- Becky McDaniel retires as Chair of Public Policy Committee. Read More.
- Study Released: Minnesota's "Hidden" Funds Originally created by Minnesota legislative action to serve special needs, "Hidden" Funds today represent more than $9 billion in annual spending, much of it, according to the Minnesota Taxpayers Association, "hidden" from taxpayers and largely unexamined in the press and by the legislature. Read More.
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