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State Representative Tim Faust
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-0518
For more information contact: Michael Howard 651-296-8873
NEWS COLUMN
The Truth about Property Tax Increases: Minnesotans Need Relief
Hundreds of cities across Minnesota held their Truth in Taxation hearing earlier this month to provide a forum for citizens to discuss yet another year of significant property tax increases. The truth is Minnesotans are already facing numerous other rising costs, and another year of major property tax increases is something few can afford.
When I've been out door knocking, I keep hearing heart-wrenching stories from families that are selling their homes because they can't afford their property taxes. It’s the home where they raised their children and the home where they watched them grow up and go to school. Now, after several decades, it's the home they cannot afford because of rising property taxes. Living on fixed incomes, their property tax increases have been a large contributor that has forced them to move into nursing homes or assisted living homes.
Members of our community, many who lived here nearly their entire life, shouldn’t be forced into these terrible situations. Minnesota property taxes have increased by well over $2 billion in the last five years, and its time we take an honest look at how we can reverse this troubling trend that is affecting communities like ours across the state.
Property taxes began skyrocketing in 2003, when the state legislature slashed local government aid (also called property tax relief aid) dramatically. Local government aid is used by cities and counties to fund state mandates in a wide variety of services. When the state cut this aid, the mandates remained in place. As a consequence, cities and counties needed property tax increases to make up the difference. Since 2003, over $1.1 billion of this local government aid has been slashed for cities and counties across the state. This marked the beginning of a trend that has shifted significant funding responsibility onto local governments for things like, education, law enforcement, and road and bridge maintenance.
This has been especially difficult for many schools, because along with deep cuts in property tax relief, the 2003 education bill slashed state education funding for the first time in Minnesota's history, forcing a $614 million property taxes increase for Minnesota schools. In addition, local property funds for roads and bridges in Minnesota have doubled, soaring to an estimated $1.6 billion in 2006. The result is that property taxes have now become the state's single largest funding source for our roads.
In total, Minnesota property taxes have increased $2.2 billion since 2003 and are projected to increase another $500 million next year. It's clear that irresponsible state budget decisions over the past four years have been a direct contributor to the cycle of yearly property tax increases. If we are to break the cycle, we must acknowledge this basic cause and effect, and work toward a corrective solution.
Property tax relief was one of my top priorities during this year's legislative session. With the need for property tax relief so pressing, I am disappointed we were unable to make permanent property tax relief a reality this year. I helped shape and pass not one, but two property tax relief bills that would have delivered permanent property tax relief to nearly every Minnesotan, whether you are a homeowner, farmer, renter, or small businessperson. Unfortunately, the Governor vetoed this very important legislation.
For decades, Minnesota has been a national leader on issues like education and health care, largely because of our commitment to these most vital of priorities. If we are to remain a national leader, we must restore our commitment by developing a more balanced and fair funding approach that does not leave local property tax payers shouldering such a hefty burden to fund the priorities our community value most.
Funding these community values like education and law enforcement should never come at the cost of a home where a family has raised their children. And it is unfair that city, county, and school leaders have taken heat for property tax increases that were forced by funding decisions made by the Governor and past legislators. Enacting permanent property tax relief will remain a top priority for me, and if you feel strongly as well, I encourage you to call the Governor's office (651-296-3391) to ask him to support permanent property tax relief.
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