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State Representative Andrew Falk
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-4228
For more information contact: Jenny Nash 651-296-4122
NEWS COLUMN
More property taxes to pay? Ask the GOP what happened to Line 4A
Minnesotans are getting their final property tax statements in the mail. Many are letting out an audible gasp when looking at Line 4A - this is where residents used to find how much tax relief they received from the state in the form of the Homestead Credit. The word “Homestead" has vanished from Line 4A – and along with it the property tax relief.
The complete elimination of the Homestead Credit, which I strongly opposed, led to $370 million in property tax increases in 2012. Southwest Minnesota was hit hard. Our cities saw property taxes hiked on average by 7.3% and our towns were slammed with double digit increases of 10.7% on average. That is what happened to Line 4A!
Now the state now has the highest property tax level in our 154-year history. Over the last ten years property taxes for homeowners increased by 92% and property taxes for farmers have increased 150%. Greater Minnesota has been unfairly hit with 64% of the new property tax increases from last year.
Some members of the majority party have claimed they were blindsided by property tax increases that resulted from the removal of the Homestead Credit. That is because they ignored statistical analysis that showed property taxes would increase if the Homestead Credit was eliminated or Local Government Aid was cut. They also refused to listen to warnings from colleagues in the minority, the Department of Revenue, and local officials around the state.
I co-authored legislation to restore the Homestead Credit. The 44-year old Homestead Credit provided direct relief to 95 percent of homeowners. It was the targeted credit that used to show up automatically on Line 4A of the property tax statement. Republicans refused to grant a hearing on the bill and will not consider restoring the Homestead Credit - making it impossible to fix Line 4A.
GOP Bonding Bill: misses the mark
The House GOP bonding bill will soon be debated on the House Floor. Bonding bills help repair and support state infrastructure, grow jobs and boost our economy.
I’m disappointed with the inadequate, geographically unbalanced, and partisan House GOP bonding bill. In addition, it fails to take advantage of record low interest rates and bargain basement construction bids. Perhaps, most distressing is that it is a missed opportunity to invest in infrastructure that would create thousands of construction and long-term private sector jobs.
I supported a Minority Report, which was offered on the House floor, to make job creation a higher priority. The Report included a robust, balanced and strategic package that focused on higher education, transportation, housing, public safety, water and wastewater systems, and regional economic development to put unemployed Minnesotans back to work and give the private sector a shot in the arm.
The Minority Report contained “shovel-ready” projects, more closely honored priority lists of state agencies and institutions of higher education, and was much more regionally balanced than the GOP bonding bill. At the amount of $775 million – what is built into the budget forecast – the Minority Report was a responsible alternative to the meager GOP bonding bill.
Unfortunately, the majority procedurally prevented the Report from getting a vote. I will continue to advocate and work with my colleagues for a sizable and fair bonding bill.
Please don’t hesitate to contact me with your questions or concerns. I can be reached at 651-296-4228 or e-mail at: rep.andrew.falk@house.mn
News Items
- Budget Forecast: Major budget problems remain for 2014-15 Fiscal crisis in Washington creates uncertainty and concerns - (Posted: Dec 5 2012 12:00AM)
- Budget Forecast: Major budget problems remain for 2014-15 Fiscal crisis in Washington creates uncertainty and concerns - (Posted: 2012-12-05 00:00:00)
- 2012 SESSION WRAP UP - (Posted: 2012-07-05 00:00:00)
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