Bill could clear path to local tax hikes

Annual 'truth in taxation' hearings would be optional
Associated Press

Legislation advancing in the Minnesota Senate would let cities and counties raise property tax levies without state interference, published notices in newspapers or annual hearings where taxpayers vent their frustrations. Senate Taxes Committee Chairman Tom Bakk said extra state aid was supposed to help local governments cope with levy limits, but the money has dried up with the meltdown. He said Democrats held out for the aid as part of last year's budget deal with Gov. Tim Pawlenty.
Bakk's bill would nix "truth in taxation" hearings late in the year — annual meetings where taxing authorities present their budgets and taxpayers react and ask questions. Bakk said the meetings are costly but don't always draw crowds. He suggested that governments could let the public weigh in at their regular meetings instead.
The bill's next stop is the Senate Rules and Administration Committee.