Commissioner’s Comments

Commissioner’s Comments By Cynthia Bauerly MN Revenue Commissioner

A Partnership That Works - Good Times or Bad

Due to COVID-19 – among other things – 2020 continues to be an eventful year for property tax administrators, along with the Minnesotans we serve. We’ve had to juggle a range of issues at home and at work which, for most of us, have occupied the same physical space for the last several months. On behalf of the Department of Revenue, thank you for being flexible, patient, and steadfast as we worked through these issues together. We appreciate your hard work and dedication to doing your jobs while keeping yourselves, your families, and your customers safe.

Legislative Session

At Revenue, we’re preparing for next year’s legislative session. As usual, we expect property taxes will figure into the Capitol discussion. We look forward to working with MAAO on our common concerns and issues such as simplifying the classification system and assuring uniform property assessments across Minnesota. MAAO and the department agree that a simpler, flatter classification system offers many advantages. Having fewer classes and tiers would make our system more understandable to taxpayers while reducing the administrative load (and costs) for counties. For example, one of Revenue’s proposals for 2021 changes the 1b classification rate for homeowners who are blind or disabled to a value exclusion. This change provides the same benefit, or slightly more, for those who qualify for the existing program. And it simplifies how you calculate and report tax information for these properties, especially those valued over $50,000. Another department proposal updates state law to better meet the current education needs of Accredited Minnesota Assessors (AMAs) and Senior Accredited Minnesota Assessors (SAMAs). It requires 30 hours of education on property tax laws each fouryear licensing cycle, as before, but allows more flexibility. The department could provide a wider range of topics than we do now in the PACE course (Professional Assessment Certification and Education). And assessors could use other seminars – such as State Assessed Property forums – and webinars or virtual learning to meet the requirement. This update will help us provide more diverse, timely, and relevant education for assessors. It also aligns state law with the recently updated Minnesota State Board of Assessors training requirements. Each session, the department works with MAAO, other partners, legislators, and the governor to help ensure any tax law changes can be implemented as effectively as possible. Please let us know if you have ideas to improve our state property tax system, and bring us into your discussions early so we can help.

Transitions

The Revenue-MAAO partnership is built on many relationships between our organizations, even as the faces may change over time. That is happening now, due to the recent retirement of Assistant Commissioner Cynthia Rowley and my own departure. Cynthia retired in September after 18 years with the department. Many of you know her from her stint as Property Tax director from 2016 to 2018. In both roles, she focused on building relationships with property tax officials and other customers. She also oversaw efforts to improve our service to counties and the systems we use to store and share property tax information. Examples include: • Creating the annual Property Tax Services Report, based on listening sessions with local officials

• Improving eCRV to be more customer-friendly and forming the eCRV User Group • Completing and enhancing PRISM (Property Record Information System of Minnesota)

Cynthia’s successor, Sarah Bronson, brings a legal background and strong focus on customer service and relationships to the job of assistant commissioner. She joined Revenue in 2017 as the Taxpayer Rights Advocate, advising agency leadership to create policies and procedures that address the needs of taxpayers. Before joining the department, Sarah spent eight years as director of the Mid-Minnesota Legal Aid Low Income Taxpayer Clinic, providing no-cost legal representations to taxpayers with limited incomes. She earned a Bachelor of Science degree from University of Wisconsin-Madison and a J.D. from the University of Minnesota Law School. Finally, I want to thank you for welcoming me and working with me as revenue commissioner over the last six years. I have enjoyed meeting many of you and working with MAAO on important property tax issues. Your work plays a crucial role in our property tax system, helping fund services our people and businesses rely on, in good times and in bad. This year has brought unprecedented challenges to state and local governments. It has been a privilege to witness how MAAO and Revenue have risen to the occasion. My last day is October 9. Deputy Commissioner Lee Ho will lead the department until the governor names a replacement for me later this year. I know all of you will continue to work hard and do great things on behalf of the Minnesotans we serve. Thank you – again – for your partnership!

Cynthia Bauerly is the commissioner of the Minnesota Department of Revenue.