The referendum stated that a set percentage of local option sales tax revenue must be used for property tax relief. How can that be shown in the city budget?
On the Resources page of the state budget forms there is a line in the very first column of line nine where the amount of revenue for property tax relief from local option taxes must be placed. However, this does little to show a corresponding reduction in property taxes. The easiest way to show a reduction in property tax is to credit the referendum s required percentage to the city s debt service fund for payment of a general obligation debt. It is then easy to show that without this local option sales tax revenue, the city would have had to tax, and, therefore, the property tax burden was lowered. However, if the city does not have any outstanding general obligation debt, then the city could consider the same type of reduction in another levy. This may be from one of the permissible, non-voted levies such as the employee benefits levy or liability, property and self-insurance levy. If the city has no other levy than the regular general levy, this may require the city to lower this l
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