ST. PAUL, MN – Today, the House DFL will release details on a $250 million property tax relief package for Minnesotans that includes direct property tax relief to homeowners, renters and modernizes the state's local government aid formula.
The House DFL plan will provide direct property tax relief to middle class Minnesotans by providing $157 million for the Homestead Credit Refund. More than 300,000 homeowners will see a refund increase through the Homestead Credit Refund program and the average homeowner will see their refund increase by $212. In addition, Minnesotans will be notified if they are eligible for a refund to ensure that more homeowners are taking advantage of the program. Property taxes have risen 86% in the last decade and last year the GOP-controlled legislature eliminated the Homestead Credit, causing property taxes to increase by $370 million.
“After a decade of skyrocketing property taxes that have squeezed middle class families, it’s time that we provide some real property tax relief to Minnesotans,” said Speaker Paul Thissen (DFL-Minneapolis). “This proposal will provide much-needed direct property tax relief to middle class homeowners and renters across the state and boost job creation and economic growth.”
In addition to providing middle class homeowners a refund, the DFL proposal includes $15.5 million for the Renter’s Credit. The Renter’s Credit is a refund that provides direct property tax relief to low- and middle-income renters. The previous legislature raised property taxes on renters who earn less than $55,000 a year by cutting the Renter’s Credit and renters saw their property taxes increase by an average of $87. The new proposal enhances the renter’s credit by increasing the maximum refund allowed for renters. Renters with household incomes less than $17,930 will see their maximum refund increase between $130 and $380. All other renters will see an increase between $10 and $80.
“Middle class families across Minnesota have seen their property taxes rise year after year for too long,” commented chief bill author Rep. Jim Davnie (DFL-Minneapolis). “Providing comprehensive property tax relief will put more money in the pockets of middle-class Minnesotans and help to move our state forward on more sustainable and reliable financial ground.”
The DFL is proposing the most significant reform in Local Government Aid in over decade, including $60 million for Local Government Aid and $28 million for County Program Aid. A broad coalition of cities representing metro, urban, and rural interests reached a compromise on LGA reform and the result is a new formula that is stable, easier to understand, and predictable. The new formula is need-based, and provides the most aid to the communities with the greatest need.
“Rural Minnesota has been hit especially hard in recent years with rising property taxes and cuts to local government and county program aid,” said bill co-author Rep. Ben Lien (DFL-Moorhead). “Property taxes for Rural Minnesotans have increased eight times more than metro homeowners’ property taxes. In addition, Greater Minnesota businesses have also seen a significant increase. It is time that we provide some real property tax relief and a new, reliable LGA formula that our local governments can count on to provide essential services to our communities. This proposal will help local governments to create jobs and will help us to sustain and expand local services.”
Rep. Davnie can be reached by phone at (651) 296-0173 or by email at rep.jim.davnie@house.mn.
-30-