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State Representative Ann Lenczewski
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-4218
For more information contact: Jenny Nash 651-296-4122
NEWS COLUMN
FINAL CERTIFIED 2012 LEVIES CONFIRM THAT REMOVING HOMESTEAD CREDIT SENT PROPERTY TAXES THROUGH THE ROOF Statewide property taxes up by $370 million to all-time record high
Final certified 2012 property levy tax numbers are in – and the report is distressing. As forewarned last year, the complete and permanent elimination of the Market Value Homestead Credit has led to an increase in property taxes across the state to a tune of $370 million. This means Minnesota now has the highest property tax level in the 154 year history of the state. Our homeowners, renters, farmers and small businesses are paying the price for the legislative budget deal brokered by the Republican majorities last summer.
“We are at a critical juncture in a fragile economic recovery and imposing $370 million in new property tax increases has hurt senior citizens on fixed incomes, working families, farmers and small businesses struggling to make ends meet. The Republican majority insisted on solving the state’s budget deficit on the backs of local property taxpayers. Our local residents and businesses are bearing a heavier burden as they fight to survive in an uncertain economy," stated Rep. Paul Marquart.
Marquart said Republicans continue to blame local governments for their property tax hike, but the facts do not bear this out. While property taxes will increase by $370 million in 2012, local levies were held to their lowest amount in over 10 year – less than 1%. In addition, many cities kept their levies exactly the same or lowered them and property taxes went up due to the elimination of the Homestead Credit.
The non-partisan House Research report (#12A6) based on final certified levies as reported by the counties to the Department of Revenue confirms that property taxes shot up on homeowners by $71 million, farmers by $52 million and businesses by $133 million due to the elimination of the Homestead Credit. The overall property tax increases are $8.1% in greater Minnesota and 2.6% in the Metro area. Again, these are final numbers based on certified levies.
“The elimination of the Homestead Credit really punishes rural Minnesotans. Rural Minnesota picks up 64% of the new property tax tab and is hit with THREE times the property tax increases as the metro area. Rural homeowners’ property taxes rise 7 and a half times higher than metro homeowners – that’s right – 7 and a half times higher. Rural businesses saw their taxes rise THREE times higher than in the metro area,” stated Rep. Marquart. “The certified numbers don’t lie; greater Minnesota is hit extra hard and it must be fixed,” added Marquart.
“Today, Representative Marquart and I renew our call for a complete restoration of the Homestead Credit to lower property taxes,” stated Rep. Ann Lenczewski. “The 44-year old Homestead Credit benefited 95 percent of all homeowners. We ask the majority to join us and our local communities to restore the Homestead Credit and provide real tax relief to Minnesotans,” concluded Lenczewski.
To see the non-partisan House Research report #12A6, click below:
http://www.house.leg.state.mn.us/hrd/issinfo/csim12A6.pdf
Rep. Marquart is the former House Property Tax Division Chair and the current DFL Lead.
Rep. Lenczewski is the former House Tax Committee Chair and the current DFL Lead.
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