Accessibility menu
State Representative Kim Norton
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-9249
For more information contact: Matt Swenson 651-297-8406
Press/News Releases
NORTON VOTES FOR PROPERTY TAX RELIEF
ST. PAUL - The Minnesota House of Representatives passed an omnibus tax bill (HF 3149) last night that addresses the issue of skyrocketing property taxes in a fair, responsible, and balanced manner. The refund is based proportionally on the size of one's income relative to his or her property taxes. Without raising taxes, the bill provides $242 million in property tax relief to Minnesotans in the form of a state refund. Under the plan, Minnesotans paying more than 2 percent of their income on property taxes will be eligible for a property tax refund. The bill passed by a vote of 80 to 52.
"Property taxes have increased at an alarming rate - $2.3 billion over the last five years," said State Representative Kim Norton (DFL - Rochester) who voted in favor of the proposal. "If nothing is done to solve the problem, property taxes will increase by over a half-billion dollars by the end of the year - 1.5 million homeowners will see their property taxes go up. By passing this bill, we are addressing a real problem, and injecting fairness back into Minnesota's tax system."
Currently, Minnesota's highest income earners are paying less in state and local taxes than Minnesota's middle-class and lower income residents. Much of this disparity can be attributed to an increasingly regressive property tax system in Minnesota. That system is hurting those who can least afford it.
"Senior citizens on fixed incomes, young families, and small business owners are getting squeezed by an unfair tax system," said Norton. "By correcting the system, we can achieve a more balanced and responsible approach that takes into consideration an individual's ability to pay."
The omnibus tax bill passed today simplifies the property tax system by phasing out the homestead market value credit, repealing the property tax refund for homeowners, and eliminating the state income tax deduction for property taxes. It replaces all three programs with one fair and efficient Homestead Credit State Refund based on income and property value. Without raising taxes, the property tax reform bill:
§ Targets homeowners who need property tax relief the most (seniors, families, farmers, etc.);
§ Bases property taxes on one's income and ability to pay;
§ Protects home ownership and stabilize neighborhoods during times of economic hardship and escalating
home market values;
§ Provides stable and permanent property tax relief; and
§ Creates a fairer, and more progressive tax system in Minnesota.
The tax bill also provides needed increases in Local Government Aid (LGA) statewide. Olmsted County stands to gain an additional $673,935 in LGA next year. The City of Rochester would receive an additional $1.6 million in LGA.
"In recent years LGA has fallen victim to budget cuts, tying the hands of our cities, townships, and counties," said Rep. Norton. "The relief this will provide for Rochester and Olmsted County will help our local units of government provide even better basic public services for area residents; including police and fire protection, water treatment, basic infrastructure maintenance, and more."
HF 3149 will now head to conference committee where members of the House and Senate will work to craft a compromise bill before it is re-passed and sent to Governor Pawlenty for final approval.
News Items
- Rep. Norton Selected as Vice Chair of House Health and Human Services Finance Committee - (Posted: 2012-12-14 00:00:00)
- It’s Time for Legislature to Get Back to Basics, Balance the Budget Honestly - (Posted: 2012-12-11 00:00:00)
- Second Saturday Coffee Meeting Date Changed to December 9 - (Posted: 2012-12-03 00:00:00)
- Archived News Items
- Subscribe to RSS News Feeds
- Read more about RSS.