ST. PAUL, Minn. (AP) - Many Minnesota cities and counties will see a big bump in their state aid, and for that they're being required to tamp down property taxes.
A wide-reaching tax bill finalized late Saturday includes a 1-year limit on local levies. It is designed to keep rates from rising at a rapid clip for 2014 property taxes.
The cap is somewhat complicated because it bases the limit on the amount of new aid a local government gets. Except in rare cases, new local levies will be held to three percent or less,. Many cities could have to freeze their tax rates.
As part of the bill, cities and counties won't have to pay sales taxes on purchases for the first time in decades.
The bill also includes some direct-to-homeowner relief mechanisms.
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