St. Paul, Minnesota — After more than a decade of property tax hikes, Minnesotans will pay less in property taxes in 2014 in large part due to direct property tax relief included in the 2013 state budget. New analysis released yesterday by non-partisan House Research confirms a report provided by the Minnesota Department of Revenue report last Friday that showed property taxes would fall in 2014. Last year’s state budget included $133 million in direct relief for homeowners and renters through the new Homestead Credit Refund and expanded Renter’s Credit.
According to non-partisan House Research, when including direct relief, statewide property taxes for homeowners are decreasing by $161 million or 4.9 percent.
“After a decade of skyrocketing increases, Minnesota homeowners and renters are finally seeing their property taxes going down,” said state Representative John Ward (DFL – Baxter). “This is good news for Minnesotans and the direct property tax relief will put more money in the pockets of middle-class Minnesotans and help our local economy and community.”
“We made a conscious decision in our budget to expand direct property tax relief to homeowners and renters, and that investment is paying off for middle-class families,” said state Representative Joe Radinovich (DFL – Crosby). “Property taxes have nearly doubled since 2002, squeezing families and businesses. Now Minnesotans will be paying less in property taxes for the first time in a decade.”
A homeowner receiving a property tax refund in Crow Wing County will receive an average refund increase of $156 and 2,300 more homeowners will qualify. A renter in Crow Wing County who qualifies for the Renter’s Credit will receive an average credit increase of $132 and 540 additional renters will qualify.
A homeowner receiving a property tax refund in Aitkin County will receive an average refund increase of $161 and 300 more homeowners will qualify. A renter in Aitkin County who qualifies for the Renter’s Credit will receive an average credit increase of $139 and 70 additional renters will qualify.
Statewide, Agriculture Homestead Land is seeing a 12 percent increase in property taxes, due to a 24 percent increase in land value. Legislators will be working this session to expand the Agriculture Market Value Homestead Credit to provide immediate relief to farmers in 2014.
“The first decrease in property taxes in a decade is a huge step in the right direction, but we know we have more work to do,” said Rep. Ward. “I’m hopeful we can address the rise in property taxes for farmers while continuing work to bring down property taxes for middle-class homeowners.”
Homeowner and Small Business Property Tax Levy Changes in 2014 *
Homeowners Small Business
Statewide -1.3% -$46,489,000 -2.1% -$6,264,000
Greater MN -2.8% -$30,278,000 -3.9% -$6,727,000
North Central Cities -0.5% -$173,000 -1.1% -$160,000
(includes part of Crow Wing County)
Taconite Cities -1.6% -$3,821,000 -3.9% -401,000
(includes parts of Crow Wing and Aitkin Counties)
East Central Cities +0.8% +$414,000 -0.2% $25,000
(includes parts of Aitkin County)
*These figures do not include $133 million in direct property tax refunds passed by the legislature in 2013.
Source: House Research Simulation #14A2, Page
Reps. Ward and Radinovich encourage constituents to contact them with any questions, comments, concerns, or ideas on any legislative topic. Rep. Ward can be reached by phone at 651-296-4333 or by email at rep.john.ward@house.mn. Rep. Radinovich can be reach by phone at 651-296-2365 or email at rep.joe.radinovich@house.mn.