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State Representative Sarah Anderson

237 State Office BuildingState Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-5511

For more information contact: Jodi Boyne 651-296-0640

Posted: 2007-03-30 00:00:00
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NEWS COLUMN

ANDERSON: PROPRTY TAX RELIEF PLAN GOOD, BUT NOT WITHOUT HOLES




Since the start of session it has been clear that the one “must have” accomplishment for the 2007 legislature is property tax relief. It was the number one most talked about issue on the campaign trail and it continues to get brought up in almost every meeting I have with constituents.

One part of the plan bases property taxes on your ability to pay. Our bill would provide refunds for a part of your property taxes if they exceed 2 percent of your household income. This piece was designed to prevent situations where people are forced out of their homes because property taxes have risen faster than their ability to pay them.

As the new refund is phasing in, the current property tax refund system for homeowners will phase out. During this transition period, you would be guaranteed a minimum refund and receive it directly on your property tax statement.

In addition, the bill gives property tax relief to homeowners by helping our schools. There is a provision in the proposal that would have the state assume a portion of the school operating capital levy debt that is currently paid for by property tax payers.

Lastly, the plan protects the current renter’s rebate. In fact, renters would see a higher maximum refund under our plan.

Overall I believe our plan is a good one. It lowers property taxes now and in the future while making some much-needed reforms. I do, however, disagree with the use of higher income taxes to pay for the plan. We have a $2 billion surplus and can afford to increase state spending by nearly 10 percent without raising taxes. We can use part of the surplus for property tax relief and still accomplish the other things we aim to achieve.

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