HomeMy WebLinkAboutMetro Sewer Board/Homestead Credit Letter •el•
STATE OF MINNESOTA
DEPARTMENT OF TAXATION
CENTENNIAL OFFICE BUILDING
SAINT PAUL, MINNESOTA 55101
October 29, 1971
Dear Sir:
The Research and Planning Division of the Department of Taxation has the
responsibility of administering the 35% Homestead Credit which is paid
on the non -debt portion of property tax +evies on homestead property.
In September, you received the 1972 billing for your municipality from the
Metropolitan Sewer Board. A number of questions have arisen concerning
the billing such as the amount of money the municipality must raise, tn--
handling of the debt payment credit, and the portion of the billing that
is for debt purposes. In an attempt to clarif these questions, particu-
larly for the purpose of determining the 35% Homestead Credit when a
property,tax levy is being used to raise all or part of the requirement,
we are providing the following information:
Operating Portion Debt Portion Total
Metro. Sewer Board
Billing a, I ► — �, �S.�j/ — sa.9�
Debt Payment Credit* , V �,
Total Requirement
To Be Raised,��5,�
* The Metropolitan Sewer Board did not assume direct responsibility for the
debt obligation of certain municipal sewer facilities that they acquired
from the municipalities Therefore, those mu „ic polities who �;:srce a bond
payment directly to a bonding company for sewer facilities now owned and
operated by the Metropolitan Sewer Board are given a debt payment credit
on their Metropolitan Sewer Board billing in return for the payment.
** This amount is the total debt obligation for your municipality for sewer
facilities owned and operated by the Metropolitan Sewer Board. Therefore,
this amount should be included in the Certified Budget Levy for Indebtedness
form to be filed with the County Auditor.
-2-
To be consistent with Subdivisions 6 and 7 of Minnesota Statutes 273.13 and
Chapter 1137, Laws of 1969, if a property tax levy is used to raise all or
part of the Metropolitan Sewer Board requirement, the levy must go first
toward meeting the debt portion. In other words, if the property tax levy
is less than the debt obligation of the municipality, the entire levy is
construed to be for debt purposes. When the property tax levy is equal to
or greater than the debt obligation, the debt portion of the levy is the
amount of the debt obligation.
If you have any further questions, please feel free to contact the Research
and Planning Division of the Department of Taxation. The telephone number
is 221 -3425.
Very truly yours,
�) - -� 1 f\'j �
Wallace 0. Dahl, Director
Research and Planning Division
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