For more information contact: Sandy Connolly 651-296-8877
It is estimated that more than 270,000 people in Minnesota are renters. Changes that are included in the Governor's budget proposal will have a negative impact on them in two ways.
First, he is proposing a $113 million cut to the renters' credit over three years, reducing about one-fourth of their returns. While this is not called a tax-increase, it is a direct loss of income for renters in the state.
Secondly, the Governor's "turbo-charged" truth in taxation proposal would give property owners -- and only property owners -- the right to weigh in on proposed property tax increases by mailing in a postcard that proclaims their dissatisfaction with the level of taxation.
Renters, who in fact do pay property taxes as part of their rent, do not have a voice in this method. Their landlords, however, get a postcard for each unit of property they own.
Renters clearly come out on the short end with both of these proposals. Making this even more serious is the fact that nearly a third of the recipients of the renters' credit, about 90,000 Minnesotans, are senior citizens or are disabled. In 15 counties in Greater Minnesota, low-income seniors make up more than half of the renters receiving the credit. All have incomes below $46,000 a year.
At a time when medical costs are rising and medical coverage is shrinking, when fuel prices continue to rise and just making ends meet is getting tougher for most of us, this new budget proposal is not good news. If these pass, 2005 could turn out to be a bad year for renters.
Please feel free to call or write if you have ideas or concerns you want to share about state or local issues. I can be reached by phone at 1800-292-0012 or 1-651-296-8237, by mail at 231 State Office Building, 100 Martin Luther King Blvd., St. Paul, MN 55155 or via e-mail at rep.patti.fritz@house.mn.