Minnesota House of Representatives


State Representative Carlos Mariani

203 State Office BuildingState Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.

For more information contact: Joan Nichols 651-29X-XXXX

Posted: 2007-04-27 00:00:00
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The House Passes A Comprehensive Property Tax Relief Bill

State Rep. Carlos Mariani

Minnesota House of Representatives Contact: Joan Nichols
District 65B (651) 296-9714 (651) 296-8891
563 State Office Building, St. Paul, MN 55155 Joan.Nichols@house.mn

Today, the Minnesota House of Representatives passed a remarkably fair and dynamic tax bill, 75 to 59, to provide property tax relief to every homeowner in the state.
Years of soaring property taxes have literally taxed some property owners out of their homes – seniors living on fixed incomes, young families starting out, small business owners and young farmers are barely keeping pace with their incomes. This bill works to balance the state's tax burden and pay for property tax relief by implementing a 4th tier of income tax where every new penny will be directed to property tax relief. This new income tax tier only applies to 1% of Minnesota taxpayers who earn income levels over $400,000, after deductions, for couples and income levels over $226,000, after deductions, for single individuals. In Ramsey County, this 4th tier income tax will only affect 1,388 couples and 582 single filers.
In return, this bill will provide Minnesotans $543 million in property tax relief for next year. The average Minnesota homeowner will benefit with a 3.6% property tax cut or approximately $120.
Significant and permanent property tax relief is ensured by developing a number of key initiatives: A Homestead Credit State Refund, increased Local Government and County Aid, a buyback and indexing of School Levy Aid.
The Homestead Credit State Refund will be extended to all homeowners who receive a property tax bill that’s higher than 2% of their income. The refund will be a percentage of the amount over 2% and based solely on a homeowner’s income and ability to pay. Almost all Minnesota homeowners (90%) are eligible for property tax relief from new Refund monies totaling $223 million dollars.
Proposed increases in Local Government and County Aid will be used to make local improvements to roads, infrastructure needs, and police departments. The district I represent will receive an additional $7,806,659. Ramsey County will receive an increase of $1,950,617.
The buyback and indexing of School Levy Aid will distribute $125 million statewide over the next two years. This will mean a total decrease in school district levy of $8,302,077 for St. Paul, helping our city's property taxpayers.
The House delivers a fair and progressive tax system to give Minnesotans what they need – property tax relief. I will keep you informed as we progress through conference committees and the remainder of the session.
As always, please feel free to call or write with any ideas or issues you have on state or local issues. I can be reached by phone at Rep. Mariani can be contacted at (651) 296-9714, by mail at 563 State Office Building, 100 Martin Luther King Blvd., St. Paul, MN 55155 or via e-mail at rep.Carolos.Mariani@house.mn.

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