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NAIOP Minnesota Attends Business Day at the State Capitol
Wednesday, March 18, 2009

NAIOP Minnesota members met with state leaders on critical legislative issues impacting the commercial real estate industry during the Minnesota Chamber's Business Day at the Capitol on March 18. One of the crucial issues that was addressed with the legislators was property taxes. This year, Minnesota businesses are slated to bear the burden of increased taxes or split roll taxation as the businesses and the commercial real estate industry strive to create jobs during the current economic crisis. Specifically, the industry is concerned with being taxed twice on the property they own or occupy – first by their local city, county and school district and a second time by the State of Minnesota with a special tax paid only by owners and tenants of business properties, cabin owners and utilities. These taxes are set to increase by 6.1 percent, for a combined state and local increase of 8 percent statewide in 2009.

The Minnesota Chamber, along with the Minnesota Business Partnership (an organization representing Minnesota's largest 100 employers) and the Coalition of Minnesota Businesses, partnered with NAIOP Minnesota to produce and distribute a property tax flyer detailing the Statewide Property Tax Rates and the detrimental effect these taxes have on the state’s employers, many who are already struggling to meet their payrolls. Sixty-thousand flyers were distributed across the state through various methods and are now found on many business organization and local chamber Web sites.

In addition to voicing their concerns on property taxes, NAIOP members also voiced their opposition to the Street Utility Fee, where cities are seeking authority to impose special taxes on property owners to fund street improvements. This new authority is in addition to other methods of funding street improvements: special assessments, special service districts and the general property tax.

Minnesota Day at the State Capitol members and participants also attended a luncheon featuring an address by Governor Tim Pawlenty.