ST. PAUL, MN – The House DFL released 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.
Property taxes have skyrocketed 86% in the last decade and the property tax relief package will provide nearly 1 million Minnesota homeowners and renters property tax relief. Last year the GOP-controlled legislature eliminated the Homestead Credit, causing property taxes to increase $370 million statewide. The House DFL plan will provide direct property tax relief to homeowners in Dodge and Steele Counties by creating the Homestead Credit Refund.
Under the Homestead Credit Refund:
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More than 300,000 homeowners (75% of filers ) will see a refund increase
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More than 100,000 additional homeowners will be eligible for a refund
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The average homeowner will see their refund increase by $212
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A grand total of 636,000 homeowners will see direct property tax relief
In addition to providing middle class homeowners a refund, the new proposal includes $15.5 million for the Renter’s Credit. The property tax relief package will increase the maximum refund allowed for renters. 66,000 filers will see a bigger refund and a total of 340,000 renters will see property tax relief through the Renters’ Credit.
“Rising property taxes have been a big concern for our community,” said Rep. Fritz (DFL-Faribault). “Greater Minnesota property taxes have increased eight times more than property taxes in the Twin Cities. Property taxes on local businesses have also risen three times more than in the metro. After years of cuts programs that help middle class families and rising property taxes, it’s time to provide direct property tax relief to Greater Minnesota communities.”
The property tax package also makes the most significant Local Government Aid (LGA) reforms in over a decade, including $60 million for Local Government Aid and $28 million for County Program Aid. In addition to the funding, the package includes an updated LGA formula that is more reliable and easier to understand. The new formula is need-based and gives more money to the communities with greater need for aid. Under the new proposal, Faribault and Owatonna would both see increases in Local Government Aid payments.
“Stable and reliable Local Government Aid will help our community sustain and expand essential city services and be able to plan into the future,” continued Rep. Fritz. “Increased LGA has a positive economic impact and can create more local jobs. This proposal will strengthen the Faribault community and provide relief to area homeowners and renters.”
Rep. Fritz can be reached by phone at (651) 296-8237 or by email at rep.patti.fritz@house.mn.
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