Focus on New Laws: Truth-in-Taxation Summary Budget Information

Truth-in-taxation requirements were modified during the 2023 legislative session in response to issues raised by local governments.

Included in the 2023 omnibus tax bill were modifications to requirements for truth-in-taxation statements. The new law:

• Requires that each jurisdiction’s website be listed on the statement, if they have a website.
• Removes the summary budget information from the statement.
• Requires that the overall change in levy for the county, each city in the county, and each school district in the county be included on the statement.

The new law also gives counties the option to require local jurisdictions to reimburse the county for costs related to preparing and mailing the proposed property tax statements that are not reimbursed by the Minnesota Department of Revenue.

Under current law, local jurisdictions must reimburse the county for these costs. In some circumstances the amount of reimbursement a city owes a county is not significantly greater than the cost of determining the amount of reimbursement, so in some cases counties may opt not to collect this reimbursement.

These changes are effective for property taxes payable in 2024.

Supplemental statement background

In 2021, the Legislature passed a law that required a supplemental statement to truth-in-taxation notices. This summary budget information requirement for cities with populations over 500 had to include a “governmental revenues” category separately stating revenue from property taxes, special assessments, general purpose aid from the state, and categorical aid from the state.

The summary budget information also had to include a “current expenditures” category, which included:

• Expenses from general government
• Public safety
• Streets and highways
• Sanitation
• Human services
• Health
• Culture and recreation
• Conservation of natural resources
• Economic development and housing
• All other expenditures

In many cases taxpayers found all this information confusing and local governments found the requirements that the separate statement be sent out onerous.

Taxpayers are most likely to be focused on the change in levy and to what extent it impacts their individual property taxes. As a result, the summary budget information requirement was repealed in the 2023 legislative session. Instead, the statement will include the levy change for the county, each city in the county, and each school district in the county.

View additional details on the truth-in-taxation process from the Minnesota Department of Revenue. 

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