For more information contact: Ted Modrich 651-296-5809
ST. PAUL, MN – State Representative Ann Lenczewski (Bloomington) recently unveiled a bill to restore the Homestead Credit for Minnesota homeowners. Rep. Lenczewski is the chief author of the bill.
Last session, Rep. Lenczewski voted against and fought against the elimination of the Homestead Credit. Unfortunately, the majority of state legislators did vote to eliminate the Homestead Credit and Governor Dayton signed the elimination as part of the final negotiation to end the state shutdown.
"95 percent of homeowners in Minnesota were receiving the Homestead Credit — and sadly, now it’s gone," said Rep. Lenczewski.
The bill being proposed by Representative Lenczewski would reverse that action and give Minnesotans their Homestead Credit back.
The Homestead Credit reduces property taxes by as much as $304 a year for homeowners. The credit will be eliminated next year and the property tax increase will be reflected on the Truth-in-Taxation statements that go out this fall.
“The Homestead Credit is the only state aid that suburban homeowners receive – and now every homeowner in Minnesota with a house valued below $414,000 will lose their credit because of this action," added Rep. Lenczewski.
The Homestead Credit was replaced by a complicated, non-transparent program called the Homestead Market Value Exclusion. The exclusion program allows some homeowners to exclude some of the value of their home from their tax assessments, but will then force other property taxpayers to make up the difference. The exclusion will simply shift who pays property taxes and will disproportionately hurt small business already struggling with high property taxes.
“This is common-sense tax relief and I’m pleased that over 40 members of the Minnesota House have already signed on as co-authors,” said Rep. Lenczewski. “As chief author, I will continue to invite members from both parties to join me in finding a way to bring back the Homestead Credit."
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Representative Ann Lenczewski is the state representative for District 40B, representing Bloomington. She is in her 7th term at the Minnesota House of Representatives.