Dear friends,
This has been another busy and exciting week at the Capitol as we work towards finalizing our budget proposals. Please view my video update to hear about what the legislature has been working on this week:
http://www.youtube.com/watch?v=z7d3OttCIqk
As I mentioned in the video, the House DFL has released a $250 million property tax relief package. The package includes direct property tax relief for homeowners, renters and also updates the local government aid formula. This is good news for Mankato and Greater Minnesota, where rising property taxes continue to be a concern. As many as 1 million Minnesotans are estimated to benefit from this property tax relief plan.
One of the three major components of the bill is the Homestead Credit Refund. This will replace the Market Value Homestead Credit which was eliminated last year. Under the new refund, more than 300,000 homeowners (75% of filers) will see a refund increase and the average homeowner will see a refund increase of $212. 636,000 Minnesotans are expected to see direct property tax relief through this plan.
In addition to providing homeowners with a refund, the property tax relief proposal expands the Renter’s Credit. The Renter’s Credit refund provides direct property tax relief to low- and middle-income renters. Under the new plan, 66,000 filers will see a bigger refund and a total of 340,000 renters will receive property tax relief.
I think that it’s important to provide direct property tax relief to homeowners and renters in the Mankato area. Property taxes for Greater Minnesotans have increased eight times more than these taxes in the metro, and business taxes have increased three times as much. In addition, Greater Minnesota has seen significant cuts to local government aid in recent years, forcing communities to cut back on many city services.
The third component of the property tax relief package includes significant local government aid (LGA) reform. LGA has existed since the 1970’s to help communities meet their basic needs when their tax base isn’t large enough to pay for essential services. The new LGA formula is stable, easier to understand and more reliable. This will help cities to budget into the future and help reduce the need for local levies and increases. Under the new proposal, Mankato would receive a small increase in local government aid.
I also want to make you aware that the Minnesota Department of Revenue is offering free electronic filing for homeowners who qualify for a Property Tax Refund. You can view more information or file a refund here: http://www.revenue.state.mn.us/individuals/prop_tax_refund/Pages/File-and-Pay.aspx.
As always, please contact me with your comments and questions on legislative issues. I can be reached by phone at 651-296-3248 or by email at rep.kathy.brynaert@house.mn. I appreciate any input that you have for me.
Sincerely,
Kathy Brynaert
State Representative
Mankato