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The GOP Tax bill (HF 2337) was passed by the Minnesota House of Representatives last night on a party line vote of 72-62. Below is a news statement issued by State Representative Carly Melin:
“The GOP Tax bill provides millions of dollars in new tax breaks for wealthy corporations by making deep cuts to the Renters’ Credit program – a property tax refund program that helps hundreds of thousands of low and moderate-income renters. I voted against the GOP Tax bill because funding tax relief to big business on the backs of the middle-class renters, many who are seniors or disabled living on fixed incomes, is unconscionable."
The cut to the Renters’ Credit means taxes will rise on 97% of our senior and disabled renters, and all other renters, by cutting an additional $70 million a year to pay for property tax relief to big corporations. The Renters’ Credit property tax refund program helps about 300,000 Minnesotan households – 86,900 of them are seniors or disabled renters. This cut comes on top of taking $261 million from homeowners, businesses, renters and farmers by eliminating the Homestead Credit last year.
Under the bill, another 74,000 households would lose their entire property tax refund, or 1 in 4 participants. Those still getting the credit would lose $213 on average - a significant amount to seniors living on a fixed income, college students paying tuition, and working families struggling to make ends meet. In St. Louis County, 11,598 refunds were filed by renters in 2010 and 42.8% participants were seniors or people with disabilities.
I co-authored a bill to restore the Homestead Credit because it is a better approach to property tax relief. Unfortunately, it was not included in the GOP Tax bill passed last night. The 44-year old Homestead Credit provided direct relief to 95% of homeowners. It was a targeted credit that showed up automatically on property tax statements and its removal led to substantial property taxes hikes for our area.
Unfortunately, the majority refused to restore the Homestead Credit; instead they prioritized wealthy corporations over middle-class citizens.”