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State Representative John Benson
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-9934
For more information contact: Charlene Briner 651-296-5809
Column/LTE
Representative Benson Asks for Input on Property Tax Relief Proposals
To the Editor,
There's been a lot in the news recently about the issue of rising property taxes across Minnesota. There's also been a lot of news about competing approaches in the House and Senate to address property taxes expected to increase by a record 8.9 percent this year if the Legislature does not act.
To clear up some of the confusion, I'd like to give a brief overview of differing strategies being proposed to offer property tax relief. Then, I'd ask you to contact me with your thoughts about which approach makes sense to you.
Governor Pawlenty proposes no income tax increase. While his plan offers $105 million in property tax relief, under his budget, property taxes would still increase by a projected $500 million dollars, in addition to the nearly $2 billion in increases since 2003. Minnesota's $2 billion budget surplus, half of which is one-time money and half of which essentially disappears when counting inflation, would provide slim funding for education, health care and other state budget needs.
The House proposal calls for a 1% income tax increase on couples earning over $400,000 per year, and single filers earning $226,000, after deductions. The $543 million generated from the increase would go toward significant and permanent property tax cuts averaging about $500 per year. The surplus would then be used to fund remaining budget areas at slightly more than the rate of inflation. For example, schools in Minnetonka would receive about $1 million in school levy aid, Hopkins schools would receive about $926,000 and Wayzata would get nearly $1.2 million in school levy relief, while another $2.2 million would go for increased county aid for Hennepin County to fund things like public safety and county services.
The Senate has proposed a 2% income tax increase for couples earning over $250,000 per year, plus a $500 million increase in business property taxes to generate a total of $1.5 billion in additional money. The increased revenue would go towards E – 12 education, tuition relief for college students and property tax relief, with the limited surplus funding remaining budget areas.
While these descriptions don't come close to providing every detail, they do give you a basic look at the debate emerging at the Capitol. It's clear there are no easy answers or perfect solutions, and I certainly haven't made up my mind about how I'll be voting. If you have an opinion about this debate, I'd like to hear it.
Sincerely,
John Benson
State Representative, District 43B
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