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State Representative Leon Lillie
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-1188
For more information contact: Matt Swenson 651-297-8406
NEWS COLUMN
PROPERTY TAX RELIEF BILL TO BE DISCUSSED IN HOUSE
Since 2003, property taxes have increased by $1.7 billion and are projected to go up by a record $603 million next year. Rising property taxes have weighed heavily on homeowners across the state – especially seniors, young families, and small business owners. Because of rising property taxes, owning a home is growing less and less affordable for Minnesotans.
Responding to concerns from people throughout the state about rising property taxes, members of the Legislature have been working together this session to come up with a plan to provide permanent property tax relief for all Minnesotans.
The House recently unveiled its proposal (HF3) for statewide permanent property tax relief.
If passed, HF3 would provide $543 million in significant and permanent relief for Minnesota homeowners by creating a new income tax bracket for the state's highest earners ($400,000 for married couples; $226,000 for individuals) who currently pay a lower percentage of their income than the state's low- and middle-income earners. 80% of those affected by this new bracket would be those earning over $1 million annually. All of the revenue collected from this new tax bracket would go exclusively to property tax relief. This is a much more moderate proposal than the Senate's plan that would raise income taxes significantly for those earning over $250,000 and property taxes for small businesses.
The centerpiece of the property tax relief bill is the Homestead Credit State Refund. The provision would provide $223 million in direct property tax relief to Minnesota homeowners. Refunds would vary based on income and home value. For example, under this plan a married couple living in a $280,000 home making $100,000 annually would receive a property tax refund of over $400.
This bill would reduce the reliance on property taxes to fund our schools and transportation system by buying back school levies and increasing county aid.
If the bill passes the House and Senate and is signed into law by the Governor, in addition to personal homestead refunds the residents of District 55A would yield the following benefits:
· $1.1 million in school levy relief for North St. Paul School District #622
· $800,000 in school levy relief for Roseville School District #623
· $1.2 million in increased county aid for Ramsey County
Buying down school levies and increasing county aid would provide property tax relief for every homeowner in Maplewood, North St. Paul, and throughout the state.
The bill will be taken up on the floor in the coming weeks. I encourage you to contact my office and the Governor's office to let us know how you feel about this legislation. Your input on this issue is extremely important.
In the meantime, you may be eligible for a property tax refund right now. To apply for the refund, complete form M1PR. The form is available at public libraries and at other locations where state tax forms are distributed.
Please continue to contact me with any questions, suggestions, or concerns you may have regarding property taxes or any other topic. You can reach me by phone at (651) 296-1188 or by email at rep.leon.lillie@house.mn. Together we can make our community and the state of Minnesota a better place. I look forward to hearing from you.
News Items
- SUPPORTING RESPONSIBLE HOMEOWNERS AND STABILIZING NEIGHBORHOODS - (Posted: 2012-03-01 00:00:00)
- Email Update -- Feb. 16, 2012 - (Posted: 2012-02-16 00:00:00)
- 2012 LEGISLATIVE SESSION PREVIEW - (Posted: 2012-01-26 00:00:00)
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