The County Board will consider a letter opposing a piece of legislation proposed by the House that would allow a reverse referendum on property tax levy increases.

The provision, based on Gov. Tim Pawlenty’s proposal, is in the House’s omnibus tax bill, which is to be on the floor for final discussion this week.

It would give voters in counties and cities larger than a 2,500 population the right to initiate a petition to have a referendum when the local government’s tax levy exceeds the previous year.

The voters can file the petition within 21 days after the Truth in Taxation Hearing with signatures of at least 5 percent of the number of votes cast in the county or city in the last general election. If that is completed, a special election for the referendum would be held on the fourth Tuesday in January.

Existing law mandates a referendum only when county or city taxes are beyond the levy limit calculated by the state.

Though the forecast for state aid reduction shrank from $400,000 to $200,000 for the June 2003 payment period and the county has been working on trimming its budget, it may still have to increase local property taxes.

The county’s prepared resolution says, “Other than raising fees, county governments in Minnesota have only the property tax levy available to meet the inflationary and population-driven demands of the mandated and essential services delivered to citizens.”

Rep. Dan Dorman said he would try to eliminate the reverse referendum and impose no levy limit for the local governments to cope with the state aid reduction.