For more information contact: Jenny Nash 651-296-4122
This week at the State Capitol, a very important report was released certifying property tax levies. The tax numbers are really significant because they confirm that eliminating the Homestead Credit caused statewide property taxes to skyrocket. MINNESOTA NOW HAS THE HIGHEST PROPERTY TAX LEVEL IN THE 154 YEAR HISTORY OF THE STATE.
The report shows that property taxes increased across the state by $370 million. Homeowners pick up $61 million of the tab, farmers pick up $52 million and businesses pick up $133 million. Particularly distressing is that greater Minnesota, Northern Minnesota in particular, is hit disproportionately harder than the metropolitan area.
Here are the facts:
· Overall property tax increase by $8.1% in greater Minnesota;
· Rural Minnesota is burdened with 64% of the new property tax tab, which is THREE times the property tax increase in the metro;
· Rural homeowner property taxes rise 7 and a half times higher than metro homeowners;
· Rural business property taxes rise THREE times higher than metro businesses.
Again, these are final numbers from certified levies and prove that Minnesota homeowners, renters, farmers and businesses are paying the price for the budget deal brokered by the Republican majority during the special session last summer.
On Wednesday, in the House Property Tax Division, DFL committee members offered an amendment to fix the property tax problem by restoring the Homestead Credit. It was opposed by the Republican majority. Instead, the GOP passed a bill that does very little for homeowners and makes deeper cuts to the Renters’ Credit, which is devastating to most senior and disabled renters and all non-senior and non-disabled renters. These are people living on fixed incomes who can least afford property tax increases. Unfortunately, rural Minnesota gets hit disproportionately again.
The Republican majority continues to favor special interests over middle class Minnesotans struggling to make ends meet. I am committed to the complete restoration of the 44-year old Homestead Credit, which provided direct property tax relief to 95% of homeowners in Northern Minnesota.