HomeMy WebLinkAbout4563 - ADMIN Resolution - City Council - 1972/07/03Original
JULY 3, 1972
7E
RESOLUTION NO. 4563
RESOLUTION REGARDING PENALTIES
ON DELINQUENT TAXES
WHEREAS, the State Legislature has established penalty rates
and interest charges on delinquent real estate taxes which are lower
than available commercial lending rates, and
WHEREAS, this legislative policy makes it economically advantageous
for certain land speculators, developers and large property owners to forego
payment of their property taxes in order to benefit from the interest rates
established by the State Legislature, and
WHEREAS, the levy limitation imposed by the State Legislature through
the 1971 Omnibus Tax Bill will adversely affect St. Louis Park's ability
to meet the needs of its rapidly growing population thus making it critical
that all monies levied be collected as they become due, and
WHEREAS, the collection of special assessments, which dollar -wise
often produce greater monies than ad valorem taxes, are also adversely
affected by the State Legislature's policy regarding penalty rates and
interest charges, and
WHEREAS, the policy regarding penalty rates and interest charges
on delinquent real estate taxes has encouraged the withholding of tax
monies which necessitates that the City of St. Louis Park either borrow
additional monies and/or cause a reduction in the level of municipal
services received by City residents, and
WHEREAS, special assessment delinquencies adversely affect the
City's ability to meet debt redemption schedules resulting in increased
interest charges the burden of which accrues to all City residents;
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
ST. LOUIS PARK that the City requests that the State Legislature initiate
an immediate review of its policy regarding penalty rates and interest
charges on delinquent real estate taxes so that deficiencies can be
remedied during the 1973 Legislative Session to create a policy which
encourages the prompt payment of real estate taxes and special assessments.
Att st:
,/,i if
_City Cler
Reviewed for administration:
Apprd as to form and legality:
City Hamner City ttorney