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Dear Neighbors,
In my last email update I wrote about the DFL Jobs Plan. After introducing our plan, DFL members toured the state speaking to local educators, local business owners and other local leaders. Time and time again we heard that businesses want a highly-skilled workforce and a strong infrastructure with frequent investment.
Another issue that been on a lot of folks’ minds these past few months is property taxes. As you know, the majority proposed and voted for the elimination of the Homestead Credit in last year’s final budget agreement. The Homestead Credit — which benefited 95 percent of homeowners — was the only property tax relief that many homeowners received and its elimination drove up property taxes across the state.
This week, a very important report was released by the non-partisan House Research Department on the final certified property tax levy numbers. The tax numbers are really significant because they confirm that eliminating the Homestead Credit caused statewide property taxes to skyrocket. Minnesota now has the highest property tax level in the 154 year history of the state.
The report findings show that property taxes increased across the state by $370 million. Homeowners pick up $61 million of the tab, farmers in Greater Minnesota pick up $52 million and businesses pick up $133 million.
On Wednesday, in the House Property Tax Division, DFL committee members offered an amendment to fix the property tax problem by restoring the Homestead Credit. It was met with staunch resistance. In fact, members of the majority opted to cut the Renters’ Credit even more to pay for relief to big businesses. The GOP passed a bill that does very little for homeowners and the deeper cut to Renters’ Credit is devastating to almost all seniors, the disabled, and virtually all renters. These are folks living on fixed incomes who can least afford property tax increases.
Minnesotans have had to suffer from skyrocketing property taxes for far too long. I remain committed to restoring property tax relief and broader tax fairness.
As session continues to move along, I welcome input on these or any other legislative issues. Thank you again for the honor of serving you in the legislature.