For more information contact: Sandy Connolly 651-296-8877
St. Paul, MN – Rep. John Ward (DFL-Brainerd) joined his colleagues in the House on Monday to pass a property tax relief bill that is designed to lower property taxes for those who need it the most – seniors, families and farmers. The key reform component of the legislation is a new "Homestead Credit State Refund", which links property taxes to an owner's ability to pay.
"At last, thousands of Minnesotans will feel some relief from drastically rising property taxes," said Ward. "Any homeowner in the state who earns under $200,000 and pays more than 2% of their income in property taxes will be eligible for this refund."
According to Ward, over the last six years, statewide property taxes in Minnesota increased by 59%, for a total of $2.7 billion; homeowner's property taxes increased by over 81%.
"If nothing is done this session, they will increase by another $559 million next year," said Ward. "Homeowners are hurting - this bill offers them some relief."
The legislation offers relief to property owners who pay high property taxes in relation to their income. It also increases Local Government Aid (LGA) by $30 million, and offers $20 million in new aid to counties and $3 million to townships.
An amendment offered by Rep. Ward to repeal the tax-exempt status for seasonal property for school operating levies failed to get support needed to pass.
"The tax exempt status of seasonal properties has had a huge negative impact on the schools in our district," said Ward. "Our schools, and our kids, could have used this additional tax money."
Other provisions in the bill include foreclosure assistance to homeowners and communities, Bovine TB tax credits, and homestead expansions. It also helps protect homeowners during tough economic times.
"If someone loses their job, or a spouse dies, their property taxes will go down to reflect the change in income," said Ward. "This bill is fair and progressive, and gives help where it is needed most."
Homeowners who are interested in knowing how this bill will affect them are encouraged to check out the Property Tax Calculator on the House web page at http://www.house.leg.state.mn.us/hrd/issinfo/hmvccalc5a.xls
"This is a solid bill that will provide property tax relief to those who need it the most, and does it without raising taxes," said Ward. "It meets the benchmarks the Governor has set for property tax relief, and I believe he should sign it into law."