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State Representative Tim Mahoney

591 State Office BuildingState Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-4277

For more information contact: Matt Swenson 651-297-8406

Posted: 2007-03-14 00:00:00
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NEWS COLUMN

RECORD PROPERTY TAX HIKES LOOMING: AN INJUSTICE FOR MINNESOTA COMMUNITIES


A report released by the non-partisan House Fiscal Analysis Department this week projected a record property tax increase for 2008 if nothing is done to correct the problem. According to the report, property taxes in Minnesota are expected to increase by 8.9 percent or $603 million under current law. These shocking figures accurately demonstrate the urgent need for immediate solutions and a new approach to the state budget.

After five years of rising property taxes totaling $1.7 billion statewide, the burden for many has become overwhelming. For seniors living on fixed incomes the choice has become whether or not to keep the home they have lived in for all of their adult lives or buy food and prescription medicine. Many across the state are being forced to make similar decisions – especially young families and small business owners. These choices will only get tougher if the state doesn’t lead the way in finding a comprehensive solution to the property tax crisis.

The cold hard truth is this: when the state doesn't adequately fund schools, health care, LGA, law enforcement, and transportation, local property taxes go up significantly. The past five years have proven that solid fact, and we've all paid the price for it. If we don't make the proper investments at the state level, where the investments should be made, we end up paying for the things we value at the local level.

This projected $603 million property tax increase should make Minnesota taxpayers think twice when they hear the Governor claim he will veto any tax increases this session. He obviously isn't talking about property taxes.

The fact is that under the Pawlenty administration, Minnesota taxpayers have seen record property tax increases and less bang for their buck on the services funded by those taxes, especially education and transportation. What's more is that the Governor's current budget proposal provides little property tax relief – bringing that $603 million increase to $450 million. Unless we take a drastically different approach to the state budget this time around, the budget will once again be balanced on the backs and already-tapped checkbooks of Minnesota's homeowners.

It is important for Minnesotans to understand that the budget debate this session, more than ever, needs to yield positive results for taxpayers who have owned the unnecessary and daunting burden of outrageous property taxes for far too long. It's time for the state to stand up and take the lead.

Over the course of the last few years, and especially in recent months, my legislative colleagues and I have been working diligently to find broad, community-based solutions that will provide meaningful property tax relief for all Minnesotans. We have worked with tax experts, local governments, school districts, and homeowners to examine the best possible avenues to property tax relief.

As a result, the Legislature is considering a number of proposals to permanently reduce property taxes this session, including proposed solutions suggested by citizens from every corner of the state on the recently launched State Property Tax Comment Line. We are committed to resolving this looming crisis for the benefit of seniors, small business owners, young families, farmers, and all Minnesotans who have suffered from the results of a poorly crafted state budget for far too long. The time for change is now.

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