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BLOOMINGTON MALL WILL HAVE LARGEST PROPERTY TAX BILL OF ANY U.S. MALL

BLOOMINGTON MALL WILL HAVE LARGEST PROPERTY TAX BILL OF ANY U.S. MALL

Minnesota's Highest in the Nation Business Property Tax Means A Hidden
 Tax on Each of the 40 Million Mall of America Visitors
 MINNEAPOLIS, Aug. 10 /PRNewswire/ -- When the biggest shopping mall in the United States, Bloomington's Mall of America, opens today it will have the dubious distinction of paying the largest property tax bill of any similar retail complex in the entire country according to the Commercial Industrial Tax Equity (CITE) Group. Based on published estimates of the $625 million cost to construct the mega-mall when fully built, CITE says the new Mall of America could end up paying a property tax bill of close to $40 million.
 "Minnesota business is saddled with the highest property tax in the entire country," said Doug Jordal, IDS vice president and chairman of CITE. "That means that this magnificent new shopping complex will be forced to pay a 5.95 percent effective tax rate along with other Minnesota businesses, big and small."
 CITE says that even if you reduce the value of the center down to $600 million, the Mall of America will still face a Minnesota property tax bill of $35,700 per year. Mall of America promoters project that 40 million visitors will be attracted to the complex in the mall's first year of operations.
 "If one accepts the Mall of America estimates of 40 million visitors," Jordal said, "the property tax costs amount to an assessment of almost $1 per person in the first year alone. Because business can only pay their property taxes with the monies obtained from customers, it means that each person will be, in effect, paying a $1 hidden tax for each visit to the mega-mall, even before they've made a single purchase," Jordal said.
 CITE noted that if the Mall of America had been built a few miles to the east in the state of Wisconsin, the business property taxes would have been almost half of what they will be under Minnesota's present tax rate.
 The CITE Group was formed in 1988 to fight Minnesota's highest in the nation property tax on business. Over 300 businesses from throughout the state of Minnesota are members of CITE.
 -0- 8/10/92
 /CONTACT: D.J. Leary of MSI, 612-333-6203, for CITE/ CO: Commercial Industrial Tax Equity (CITE) Group; Mall of America ST: Minnesota IN: SU:


KH -- MN013 -- 8611 08/10/92 15:23 EDT
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Publication:PR Newswire
Date:Aug 10, 1992
Words:410
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