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State Representative Paul Marquart
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-6829
For more information contact: Michael Howard 651-296-8873
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House GOP passes huge property tax increase on middle class
$1.2 billion statewide property tax increase hits seniors, renters, and small businesses
St. Paul, MN – House Republicans passed their first piece of their budget plan today, relying on huge property tax increases on middle class Minnesotans in their omnibus tax bill. According to the non-partisan Department of Revenue, the GOP tax plan will increase property taxes by $1.2 billion over the next four years due to large cuts to local government aid, the renters’ property tax refund and the elimination of the market value homestead credit. State Rep. Paul Marquart (DFL – Dilworth) said the bill takes Minnesota backwards by increasing taxes on seniors, renters, homeowners and small business owners.
“This is a whopper of a property tax increase," said Marquart. “The Republicans are choosing to balance the budget by adding more hardships on middle class Minnesotans who have already paid enough over the last eight years. More property tax increases burdening our seniors, businesses, and homeowners are a step backwards for our state and the wrong way to create jobs and strengthen our economy.”
“This bill completely takes away your homestead credit,” said Marquart. “It’s beyond belief the Republicans would take this long time and cherished benefit away from homeowners.”
The property tax increases included in the bill will hit seniors on fixed income and renters particularly hard. The average tax increase due to the cut to the renters’ refund will be $300 per person. 38,000 Minnesotans will lose their entire refund altogether. Rural communities that receive LGA will also experience property tax increases. Over the past eight years property taxes have increased $3.5 billion, an 86% increase on homeowners. Marquart said the latest property tax increase would add another $1 billion in more property tax increases.
“This just continues the past policies that push our state responsibilities onto the backs of property tax payers, on the backs of farmers, and on the backs of our local businesses,” said Marquart. “Adding another $1 billion in tax increases isn’t just more of the same - it’s far worse.”
DFL legislators attempted to amend the bill in order to prevent huge property tax increases for middle class Minnesotans. Their proposals included a restoration of LGA and the renters refund as well as property tax relief for small businesses. The DFL amendments offset the property tax relief for Minnesotans by closing tax loopholes for corporations that shelter earnings overseas. Republicans defeated each amendment.
“The Republican priorities are clear – they would rather increase property taxes on seniors, renters, and small businesses instead of closing a tax loophole that big corporations use to maximize their profits,” said Marquart. “These are the wrong priorities for a successful and thriving Minnesota.”
Specific property tax raising cuts in the bill include a $247 million cut to local government aid, $72.7 million cut to county program aid, $360 million to eliminate the Market Value Homestead Credit, and a $186 million cut to the Renters’ Credit.
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