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Page 1 of 1 Sandy Peine From: Jennifer Simota [ Jennifer . Simota@co.crow - wing.mn.us] Sent: Monday, September 19, 20114:10 PM To: Jennifer Simota Cc: Doug Houge; Paul Thiede; Phil Trusty; Rachel Nystrom; Rosemary Franzen; Tim Houle Subject: Market Value Credit Exclusion - Meetings Follow Up Flag: Follow up Flag Status: Completed Attachments: MVC Date Time (email).pdf; copy of letter from Tim Houle. pdf Greetings City /School/Township Officials: In the last Legislative Session, the Legislature and Governor sunset the Market Value Credit program, which was a relief program targeted to homeowners, in an effort to reduce the State's expense for this program. Across the state, that is a reduction of over $100 million in state paid aids to reduce local property tax burdens. Those funds that you may have received in past years will not materialize in 2011, which, on a statewide basis, means a "built -in" property tax escalator of over 3 %, unless you reduce your levy to offset this loss of state aid. This reduction in state aid is likely to increase taxpayer sensitivity as property taxes will likely rise. In an effort to provide some continuing relief to homeowners, however, the Legislature and Governor established a market value exclusion that excludes a certain amount of a homeowner's value from property taxes. Because the two programs use different methods to calculate how much relief a particular homeowner received under the old program compared to the new, there are winners and losers. Compounding the issue, those winners and losers will vary widely from one jurisdiction to another and from one tax class to another based on your historical tax rate and the unique mix of property classes within your jurisdiction. This "shift" of tax burden will be more of a substantial shift in property tax burden from one property tax class than any shift that has occurred in recent memory. We are inviting you to attend a special session (see attachment) for local public officials to explain how the two approaches work and what types of shifts are most likely to occur. Feel free to bring other staff or elected officials that you deem most appropriate to this topic. With regards, Timothy J. Houle County Administrator This message has been scanned for malware by Websense. www.websense.com 9/28/2011