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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 the House Omnibus Tax Bill that was passed on Friday will bring significant and permanent property tax relief to every property owner in the state.
The bill uses a combination of initiatives to provide over $544 million in permanent property tax relief and restore fairness to the state tax system. The plan includes $125 million in school levy reductions and aid in the House Omnibus E-12 Education Bill, Minnesotans will receive over $544 million in permanent property tax relief.
"After years of opening tax bills that are going up, Minnesota homeowners will finally open one next year that has actually gone down," said Ward. "Our goals with this bill were to provide significant and permanent property tax relief to every property owner in the state and increase the fairness in our tax system. This bill does that. It also provides significant tax relief for veterans and farmers."
As the result of proposals authored by Rep. Ward, the Baxter water treatment facility and the joint Baxter/Brainerd wastewater facility will receive a 50% tax exemption for construction materials.
The centerpiece of the bill is a new Homestead Credit State Refund that provides over $223 million in direct property relief to Minnesotans. Under the credit, any Minnesota homeowner whose property tax bill is more than 2 percent of their income would receive a credit on a portion of the income over 2 percent based on their income (90 percent low income filers to 25 percent for upper income filers up to $150,000.) The maximum credit is $2,500.
"Since 2002, property taxes in Minnesota have increased by $2.3 billion, " said Ward. "These increases are especially hard on seniors, young families, veterans and farmers.
With today's bill, we're delivering on our promise to property owners across the state to do something about these rising property taxes."
According to Ward, this bill represents real cuts; homeowners will see a $120 cut or 3.6 percent from 2007 and farmers will get a $7 million cut or 4.1 percent.
In addition to the Homestead Credit State Refund, the bill also includes Local Government Aid ($60 million), County Aid ($24 million) and Township Aid ($3 million). Combined with the $125 million in school levy reductions and aid in the House Omnibus E-12 Education Bill, Minnesotans will receive over $544 million in permanent property tax relief.
"This bill keeps seniors in their homes, families in their neighborhoods and farmers on their land,"
Ward said. "It builds more fairness into the system and provides relief to those who need it the most. It also reduces the reliance on property taxes to fund our schools, transportation system and local governments, which increases equality between property-rich and property-poor communities."
To pay for the property tax relief, the bill creates a new fourth tier state income tax rate of 9 percent on income over $400,000 for couples and $226,230 for single filers, both after deductions. The new tier will raise $453 million over the next two years. Only 1 percent of Minnesota filers would pay higher income taxes under the bill and 81 percent of the revenue would come from those making $1 million or more.
"Every dollar raised by the new tier will be used for property tax relief, " Ward said. " This bill restores fairness to our tax system and offers a benefit to every property owner in the state."
Other highlights of the bill include:
· Property tax exemptions for disabled veterans.
· Doubling of the military credit for members of the military serving in combat zones.
· Income Tax exemptions for National Guard members.
· The Dairy Investment Credit.
· $29.6 million cut on the property tax for Agricultural Homestead Land.
· Closes the loopholes on Foreign Operating Corporations (FOCs).
"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," said Ward.
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
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- 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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