For more information contact: Joan Nichols 651-29X-XXXX
The House DFL Property Tax Relief Committee has a plan that will offer Minnesotans $543 million in property tax relief for next year. If passed, our proposed bill will benefit the average Minnesotan homeowner with a 3.4% tax cut.
The House DFL Plan ensures significant and permanent property tax relief by developing a number of key building blocks: A Homestead Credit State Refund, increased Local Government and County Aid, a buyback and indexing of School Levy Aid, and the creation of a 4th tier of income tax.
The Homestead Credit State Refund will be extended to all homeowners who receive a property tax bill that's higher than 2% of their income. The refund will be a percentage of the amount over 2% and based solely on a homeowner's income and ability to pay.
Increases in Local Government and County Aid will be used to make local improvements to roads, infrastructural needs and police departments.
The buyback and indexing of School Levy Aid will distribute $133 million statewide over the next two years. This will mean a total decrease in school district levy of $478,000 for Columbia Heights, $355,000 for Fridley, and $133,000 for St. Anthony.
The House DFL Plan works to balance the state's tax burden and pay for property tax relief by creating a new income tax tier that will only impact married couples earning $400 thousand or more, after deductions, and singles earning $226,000 or more, after deductions.
The House DFL Plan has drafted legislation that delivers a more fair and progressive tax system to give Minnesotans what they need – property tax relief. I look forward to working with the Governor and my colleagues on this important issue.
As always, if you have any questions about the meetings or any other issue, please contact me at 651-296-4331 or by e-mail at rep.Carolyn.laine@house.mn.