Rep. John Persell
NEWS RELEASE
Minnesota House of Representatives
District 5A 651-296-4288 – rep.john.persell@house.mn
369 State Office Building, St. Paul, MN 55155
FOR IMMEDIATE RELEASE
CONTACT: Matt Privratsky 651-296-6860
April 2, 2013
House DFL Releases $250 Million Property Tax Relief Package for Minnesotans
Northern Minnesota residents to see significant property tax relief
ST. PAUL, MN – State Representative John Persell (DFL – Bemidji) released details today on a $250 million property tax relief package for Minnesotans that includes direct property tax relief to homeowners and renters in northern Minnesota and modernizes the state's local government aid formula, including additional property tax relief to the communities across Minnesota. Up to 1 million Minnesotans will see direct, targeted property tax relief through the proposal.
“Families have been dealing with property tax increases since before the recession began five years ago and now it’s time to help working families by providing property tax relief,” said Rep. Persell. “This kind of property tax relief will help families make ends meet.”
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 $370 million statewide. The House DFL plan will provide direct property tax relief to middle class Minnesotans by providing $157 million for the Homestead Credit Refund.
Under the Homestead Credit Refund:
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More than 300,000 homeowners (75% of filers) will see their property tax refund increased
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More than 100,000 additional homeowners will be eligible for the 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 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. 66,000 filers will see a bigger refund and a total of 340,000 renters will see property tax relief through the Renters’ Credit.
The DFL is proposing the most significant Local Government Aid (LGA) reform in over a decade, including $60 million for Local Government Aid and $28 million for County Program Aid. Under this proposal, many towns in District 5A will see an increase in LGA, with Bemidji seeing an 8% increase over the current year. The LGA formula is meant to provide cities with state aid when their essential needs exceed the amount that they can raise in property and local taxes. Many Greater Minnesota communities have faced severe LGA cuts in recent years, forcing them to cut back or eliminate vital city services such as police and fire.
“For Bemidji and all the communities in our area, more stable funding will help local communities plan their budgets long term,” said Rep. Persell. “And the LGA increases will allow them to keep their own levies low while offering critical services that we all depend on.”
The new property tax relief proposal includes an updated LGA 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. Giving cities a more stable source of aid will allow them to better plan financially and to sustain or expand local services such as police, fire and infrastructure.
Throughout the legislative session, Rep. Persell encourages all constituents to contact him directly with any questions, comments, or concerns on any legislative issue. Rep. Persell can be reached by phone at (651) 296-5516, (877) 838-5537 or by email at rep.john.persell@house.mn. You can sign up to receive email updates from Rep. Persell by going to www.house.mn/5a
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