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State Representative David Dill
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-2190
For more information contact: Sandy Connolly 651-296-8877
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HOUSE TAX BILL BRINGS TAX RELIEF, TAX FAIRNESS
ST. PAUL – State Representative David Dill of Crane Lake said the House Omnibus Tax Bill that was passed last Friday would bring significant and permanent tax relief to every property owner in the state. When combined with the $125 million in school levy reductions and aid in the House Omnibus E-12 Education Bill, this bill will provide Minnesotans with over $544 million in permanent property tax cuts.
"Property taxes in our state have increased by over $2 billion in the past five years and are projected to go up by another $500 million next year," said Dill. "With this bill, the majority of Minnesotans will actually see a property tax cut."
To offer these cuts, the bill includes a series of initiatives including increased Local Government Aid, county and township aid, and a new Homestead Credit State Refund, among other provisions.
The Homestead Credit State Refund provides over $223 million in direct property relief to Minnesotans. Under the credit, any Minnesota homeowner whose property tax bill is more than 2 percent of their income would receive a credit on a portion of the income over 2 percent based on their income (90 percent low income filers to 25 percent for upper income filers up to $150,000.) The maximum credit is $2,500.
In addition, the bill also includes Local Government Aid ($60 million), County Aid ($24 million) and Township Aid ($3 million). Cities in District 6A will see the following amounts in increased LGA:
· Babbitt $75,000
· Cook $22, 978
· Ely $281,420
· Grand Marais $44,321
· Orr $8,147
· Silver Bay $120,985
· Tower $24,406
· Two Harbors $85,074
· Winton $5,890
School levies will also decrease by significant amounts:
· Cook County $21,211
· Lake Superior $232,532
· Ely $84,044
· Nett Lake $4,424
· Duluth $1,710,702
· St. Louis County $353,670
"This bill will provide needed relief to senior citizens trying to stay in their homes, young families trying to keep up with rising costs, and farmers who have seen rising land values raise their taxes while their income is the same," said Dill.
To pay for the property tax relief, the bill creates a new fourth tier state income tax rate of 9 percent on income that exceeds $400,000 for couples and $226,230 for single filers, both after deductions, the fourth tier does not change the rate on the income below 400,000 for joint filers or 226,230 for single filers. The new tier will raise $453 million over the next two years. Only 1 percent of Minnesota filers would pay higher income taxes under the bill and 81 percent of the revenue would come from those making $1 million or more.
"Every dollar raised by the new tier will be used for property tax relief," Dill said. " This bill restores fairness to our tax system and offers a benefit to every property owner in the state."
Other highlights of the bill include:
· Property tax exemptions for disabled veterans.
· Doubling of the military credit for members of the military serving in combat zones.
· Income Tax exemptions for National Guard members.
· The Dairy Investment Credit.
· $29.6 million cut on the property tax for Agricultural Homestead Land.
· Closes the loopholes on Foreign Operating Corporations (FOCs).
"This bill is revenue neutral - the same amount of money will be coming into the state, only it won't be coming from the lower and middle class through increased property taxes," said Dill.
"I hope Minnesotans realize that the middle class is a big winner with this bill."
News Items
- Budget Forecast: Good news for this year, bad for the coming two Fiscal crisis in Washington creates uncertainty and concerns - (Posted: Dec 7 2012 12:00AM)
- MOLPUS LANDS STATUS QUO FOR NOW - (Posted: 2012-10-18 00:00:00)
- Rep. David Dill encourages hunters and trappers to apply for wolf license - (Posted: 2012-08-17 00:00:00)
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