Why are relationships with local governments important to Minnesota businesses?

The TwinWest Chamber of Commerce has a long history of working with municipal governments in our 10 cities. TwinWest recognizes the importance of strong cities, with efficient services and solid infrastructure, in creating a healthy business climate.

A significant component of the cost of doing business in Minnesota and the TwinWest trade area is taxes and fees paid for state and local government spending to provide services. These fiscal obligations require a careful balance of the needs of government and business. Businesses need quality services at a reasonable price and local governments need a healthy business tax base.

The 2001 property tax reform was designed so that property taxes are now used largely to pay for local services. Businesses continue to pay property taxes at proportionately higher rates than homeowners. Therefore, it is important for business interests to be considered by local officials when property taxes, fees and other revenues are proposed.

What guidelines does TwinWest support in local government decision-making?

We support measures to increase accountability and responsiveness to community  businesses and residents from local government:

TwinWest supports basing city and county taxes on the need for services and real growth, rather than state-imposed levy limits. Local officials should be directly responsible to their local taxpayers.

Taxes from all levels of government should be transparent. The residents and businesses who are paying the tax should know what the tax pays for, which unit of government receives the tax revenue, and should be able to vote for or against those implementing the tax.

Fees should directly relate to the cost of services received. TwinWest opposes the imposition of fees simply as an additional revenue raising measure. Fees should not fall disproportionately on the business community.

TwinWest opposes raising general revenues through the implementation of franchise fees on utilities. If fees are imposed, they should be targeted toward offsetting the cost of managing and maintaining the public right of way that utilities operate in. Existing franchise fees should be routinely reviewed and should sunset when deemed no longer necessary.

TwinWest supports the reinstatement of the sales tax exemption for local units of government. One government taxing another government doesn’t make sense because the taxpayers ultimately pay the bill.

The local government aid system should be simplified so that taxpayers understand who is paying how much for what services. Historic spending is not a valid basis for LGA. Only basic services (streets, police, fire, sewer and water) should be considered for state equalization funding. Local taxpayers should be responsible for discretionary services.

TwinWest supports the scheduled restoration of Market Value credit cuts made in the 2003 legislative session so that the disparities between metro and greater Minnesota taxpayers are not worsened.