Homeowners, Rochester Benefit From Property Tax Relief Legislation

Property tax refunds would increase by $212, City of Rochester would receive an additional $1.4M in LGA

SAINT PAUL, MN – New data from the Minnesota House Research Department shows that the City of Rochester and other area communities will benefit from the property tax reduction legislation proposed by the MN House DFL. Beginning in 2014, the City of Rochester would see an increase of roughly $1.4 million in local government aid.

“Property taxes have increased significantly during the past decade,” said Rep. Kim Norton (DFL – Rochester). “Additional aid to cities and providing direct support to homeowners and renters will help reduce this tax burden, while protecting essential public services like fire and police protection.”

Also beginning in 2014, 75 percent of Minnesota homeowners would see an increase in their property tax refund – the typical homeowners would receive an additional $212. Minnesotan’s who rent also would see new aid. In total, 340,000 renters would receive property tax relief through the Renters’ Credit with typical refund increasing by $170.

More on Homestead Credit:
The proposal provides direct property tax relief to middle class Minnesotans by increasing the Homestead Credit Refund by $157 million. In addition, Minnesotans will be notified if they are eligible for a refund to ensure that more homeowners are taking advantage of the program.

More on Renter’s Credit:
The 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 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.  

More on LGA increases:
The property tax relief proposal includes $60 million for Local Government Aid. This represents the most significant increase in Local Government Aid in over decade. The new formula was developed by a broad coalition of cities representing urban, suburban, and rural interests. This new formula is more stable, easier to understand, and predictable than the previous one.

            From Minnesota House of Representatives Research Department.

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