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89-185 WHITE - C�TV CIERK �+ _ PINK - FINANCE .��� G I TY OF SA I NT PA U L Council Q` /�J�/� CANARV - DEPARTMENT ,;� � Flle NO. Q�� � ✓ BLUE - MAVOR \�� - Cou cil R lut 'o Presented By � � � Referred To Committee: te Out of Committee By te WHEREAS the mor gage registry and deed tax was not applied to local units of overnment until 1987 ; and WHEREAS , the 19�7 Legislature amended the law by now requiring local units of �overnment to pay the taxes ; and WHEREAS , the mo tgage registry tax and the deed tax were increased appre iably; and WHEREAS , the st te' s commitment to providing funding for a trust fund dedi ated to promoting affordable housing ; and WHEREAS , the fe eral government has dramatically reduced federal funding to promote the building and maintenance of affordable housing; THEREFORE, BE IT RESOLVED, that the City of Saint Paul supports legisl tion that will dedicate the mortgage registry and deed tax to a housing and redevelopment trust fund. COUNCIL MEMBERS Yeas Nays Requested by Department of: Dimond �_ ��s. I�� In Favor coswitz Rettman � B Scheibel �_ Against Y r-�6ewrrn �''�°° FEB - ? 1989 Form Approved by City Attorney Adopted by Council: Date Certified Pa: e il Se r BY ��`�"� ��' -���� f�Z�J �� By � � Approv y �Vlavor: Da � � ' ���� Appro d by Mayor for Su i Council B PI1�L1S#�D :--,- ;- 1 _;_ 1989 � ' ' BR �FI�G_F�PEP__'i�hTG.AGE rEGISTRI` r'�VD DEED TAX �� . - - �� ' ISSliL � 'I'1-ie 1987 St�ate Legislature amended tihe mortgage re�istry a�id deed tates ! ti�� requiring local uni_ts of government to pay tl�ie t;a�es . In i:he same ,year, the Legislature i_ncreased t:he morLgage r gistrv ta� from l:i cents to `L3 cents upon each $100 or� fractio ,of ttie mortga�e ' s principle deUt . Iii addition, the deed t� �: iilcreased from $2 . 21 Per �1 , 000 of �•alue to $3 . 30 per $1 , 000 of �-al.uc . The deed and mortga,�e registr�� taxes are noca apport ' oned mont}�lv to the counl:�� in Lhe following manner: - 97% of ttie receipLs attributable to the ta::es are credited to the county welfare costs - this a�rlount is deducted from the count5' s claim for Faelfar� reirnbursement STATUS If a count� collects $100, 000 per month in deed and mortgage registry t xes, and claims a monthly welfare reimbursement of $200 , 000 , i�he state would reimburse the county as follows: Claim � $200 ,000 97% of tax s 97 .000 State reiml�ursement $103 , 000 The tax re�eipts remain with the county of collection. The tax procee s are used to reduce the state' s welfare pa,yments to the cour�ty. CITY OF SAINT PAUL POSITION Since stat funds for statewide housing trust funds are extremelv �limited, the City of Saint Paul supports legislation � that would dedicate the mortgage registry and deed tat to a housing ancl redevelopment trust fund. The trust fund would be used by houjsing and redevelopment authorities. � �•�� � � �� . i 8�' � � . WHEREAS th mortgage registr�� and deed ta� was not applied to local unit of government until 1987 ; and WHEREAS , tl�e 1987 Legislature amended the law by now requiring local unit� of government to pay the taxes ; and _ WHEREAS , t�e mortgage registry tax and the deed tax were increased ppreciably; and WHEREAS, t e state' s commitment to providing funding for a trust fund dedicated to promoting affordable housing; and WHEREAS, t e federal government has dramatically reduced federal fu ding to promote the building and maintenance of affordable housing; � THEREFORE, IBE IT RESOLVED, that the City of Saint Paul � supports 1 gislation that will dedicate the mortgage registry and deed t x to a housing and redevelopment trust fund. � � � I , 9�i�� � S COMMITTEE REPORT - City Council Legislation Committee Page Two January 23, 1989 Recommenda ions of the Governor's Commission on Affordable Housing COMMITTEE ECOMMENDED APPROVAL Interest R 'duction Program COMMITTEE ECOMMENDED APPROVAL ed Tsx . � t'�"�'.�_�'� Fiscal Dis arities COMMITTEE ECOMMENDED APPROVAL Category: En ironment and ualit of Life Regional P rk Operation and Maintenance Funding COMMITTEE ECOMMENDED APPROVAL Regional P rk Capital Improvement Funding COMMITTEE ECOMMENDED APPROVAL CSO Fundin COMMITTEE ECOrIIr1ENDED APPROVAL Solid Wast COMMITTEE ECOMMENDED APPROVAL Water Rate COMMITTEE ECOMMENDED APPROVAL Category: Tra s ortation Airport La d-Banking COMMITTEE ECOMMENDED APPROVAL, AS AMENDED Transporta ion, Transit and Light Rail Transit Funding COMMITTEE ECOMMENDED APPROVAL, AS AMENDED (4-1 vote) Category: Mis ellaneous Saint Paul School Board COMMITTEE ECOMMENDED APPROVAL Comparable Worth COMMITTEE ECOMMENDED APPROVAL Fingerpri ting of Firefighters COMMITTEE ECOMMENDED APPROVAL THE FOLLOWING MAT�ERS LISTED FOR CONSIDERATION AT THE MEETING WERE LAID OVER AND WILL BE DISCU SED AT THE FEBRUARY 6, 1989, MEETING OF THE COMMITTEE: �jyrl1f�g� CITY O F SAINT PAUL �r�d a,; OFF`ICF OF TITF, CITY COIINCIL James Scheibel, Chair Committee-of-the-Whole JAMES SCHEfBEL Council President Date: January 23, 1989 COMMITTEE REPORT To: SAINT PAUL CITY COUNCIL From: CITY COUNCIL LEGISLATION COMMITTEE 1. "A" Priority Issue Fire Protection Sprinklers COMMITTEE RECOMMENDED NO ACTION BE TAKEN 2. Support Issues Category: Health and Human Services Community Health Services Funding COMMITTEE RECOMMENDED APPROVAL Co�unity Residential Facilities COMMITTEE RECOMMENDED APPROVAL Child Care COMMITTEE RECOMMENDED APPROVAL Alternate Test Site Funding (AIDS) COMMITTEE RECOMMENDED APPROVAL Minnesota Health Care Access COMMITTEE RECOMMENDED APPROVAL Maternal Child Health Funding COMMITTEE RECOMMENDED APPROVAL Category: Economic Development and Housing Arts High School Funding COMMITTEE RECOMMENDED APPROVAL CITY HALL SEVENTH FLOOR SAINT PAUL, MINNESOTA 55102 612/298-5679 a�ac