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State Representative Paul Marquart
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-6829
For more information contact: Jenny Nash 651-296-4122
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Renters’ Credit targeted again for deep cuts in House Omnibus Tax bill 99% of property tax relief for corporations and large businesses; less than 1% for homeowners
Today, the Omnibus Tax bill (HF 2337) was heard in the House Tax Committee. The bill raises taxes on Minnesota renters, including seniors and the disabled, by cutting an additional $160 million over two years from the Renters’ Credit program to pay for property tax relief to big corporations. The Renters’ Credit is a property tax refund program that helps about 300,000 Minnesotan households. It refunds part of the property taxes that renters pay via rent payments to landlords; the bill reduces the refund.
“This approach is problematic," stated Rep. Paul Marquart. “Over 25% of those who receive refunds are seniors and people with disabilities. Many live on fixed incomes and use their refund to buy medicine and groceries. Just last year the Renters’ Credit was slashed by $26 million and resulted in nearly 300,000 Minnesota households seeing an $87 cut on average per refund and almost 7,300 households losing the refund entirely. Enough is enough,” said Marquart.
This proposal means another 74,000 households would lose their entire property tax refund, about 1 in 4 participants. Those still receiving the credit would lose $221 on average, which would be devastating to seniors living on a fixed income, college students paying tuition and anyone who lives paycheck to paycheck.
“This Tax bill forces Minnesota renters to give huge subsidies to businesses,” stated Rep. Ann Lenczewski. “A more balanced alternative to providing property tax relief that doesn’t pit property owners against each other is desperately needed. That is why Rep. Marquart and I have authored a bill to restore the Homestead Credit, which is a much better method to property tax relief. Unfortunately, our bill has not been scheduled for a hearing.”
“The 44-year old Homestead Credit provided direct relief to 95% of homeowners. It was a targeted credit that showed up automatically on property tax statements and its removal led to substantial property taxes hikes for homeowners, businesses, farmers and renters alike. We ask the majority to please join us in getting the Homestead Credit restored to provide relief to all property owners,” concluded Marquart.
News Items
- Marquart Selected to Chair House Education Finance Committee - (Posted: 2012-11-16 00:00:00)
- 2012 SESSION UPDATE - (Posted: 2012-05-15 00:00:00)
- May 15th deadline to pay property taxes stings Greater Minnesota homeowners, business owners and farmers - (Posted: 2012-05-15 00:00:00)
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