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State Representative John Ward
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-4333
For more information contact: Sandy Connolly 651-296-8877
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HOUSE BILL OFFERS FIRST PROPERTY TAX CUT IN YEARS Bill brings more tax fairness to state's tax system
ST. PAUL, MN – State Representative John Ward wants his constituents to know that if the House Property Tax Relief Bill becomes law, every property owner in the state will receive significant and permanent property tax relief.
The bill introduced by the House Property Tax Relief Committee offers $543 million in total property tax relief across the state and increases the fairness of Minnesota's tax system. According to Ward, this legislation is an important step forward in returning balance to the state property tax system, which has been overused in the past few years.
"We need to stop asking property owners to bear the brunt of services that have historically been funded by the state," said Ward. "Instead of the projected 8.9% property tax increase next year, this bill will provide the average Minnesotan with a property tax cut of 3.4%."
The bill provides the relief through a series of initiatives, including increased LGA, which towns and cities use to fund local improvements, such as roads and infrastructure, as well as police and fire departments. Additional LGA will be available for each city in the following amounts:
Brainerd - $266,781
Crosby - $71,174
Ironton - $46,641
Riverton - $3,147
The plan also includes $133 million for the buyback and indexing of School Levy Aid, which will decrease the levy for each school district by the following amounts:
Brainerd School District - $1,013,271
Crosby – Ironton - $148,889
One other source of additional revenue provided under this plan is County Program Aid. As the result, Crow Wing County would receive over $101 thousand in additional funding.
The legislation also includes a component designed to build more fairness into the tax system. Under the new Homestead Credit State Refund, if a person's property tax bill is more than 2% of their income, they will get a certain percentage of the amount over 2% refunded to them, based on income. This provision will provide $223 million in direct relief to Minnesota homeowners.
"This bill has something for everyone in it," said Ward. "Property taxes have increased by close to $2 billion over the past five years; this legislation will reverse that trend-and it's about time."
To pay for this property tax relief, the state will work to collect every dollar of unpaid state taxes (estimates put this somewhere between $100-$200 million a year), and close the tax loopholes from foreign operating corporations. In addition, the bill would create a 4th tier state income tax bracket. This new tier would affect married couples who earn more than $400 thousand a year, after deductions, and individuals who earn more than $226 thousand, again after deductions. Every penny of revenue generated by this 4th tier will go directly into property tax relief.
"A recent report from the Minnesota Department of Revenue shows that the highest earners in our state actually pay a smaller percentage of their income in taxes than middle-earners," said Ward. "This bill will ask the top 1% of earners to pay a closer percentage to that being paid by the rest of us – not more, just closer.
Property taxes hit our seniors, small businesses and young families just starting out the hardest - this plan would spread the state tax burden fairly to earners at every level, which seems pretty reasonable."
If you have questions about this legislation, you can contact Rep. Ward at (651) 296- 4333, or 1-800-683-4205, by mail at 533 State Office Building, 100 Martin Luther King Blvd., St. Paul, MN 55155 or via e-mail at rep.john.ward@house.mn.
News Items
- 2013 Legislative Session Preview - (Posted: Jan 11 2013 8:39AM)
- Assistant Majority Leader Rep. John Ward Sworn-In as Legislative Session Starts - (Posted: Jan 8 2013 2:39PM)
- Rep. John Ward Elected Assistant Majority Leader and Selected to Serve as Vice Chair of Capital Investment Committee - (Posted: 2012-12-19 00:00:00)
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