After more than a decade of ever-increasing property taxes, Minnesotans will pay less in property taxes in 2014. This is in large part due to our $133 million investment in property tax relief for homeowners and renters last session through the new Homestead Credit Refund and expanded Renter’s Credit. When both levies and refunds are calculated, we find Minnesota homeowners will pay $161 million less in property taxes in 2014 than they did in 2013.
Non-partisan House Research released a report highlighting anticipated property tax levies, as well as changes to direct property tax refunds to determine overall changes to property tax totals for Minnesotans in 2014.
Homeowners will see the most significant decrease. Overall, homeowners will see a $161 million decrease in property taxes in 2014, a 4.9% decrease from 2013.
Small businesses will see a net property tax decrease in 2014 of 2.1%.
Renters will see a net decrease in property taxes of 0.1%.
Property tax levies (excluding refunds) are set to increase by $124 million, but $75 million of that increase comes from new construction/property for homestead and businesses.
Property taxes are going down despite a significant number of voter-approved education levies. 86 percent of the operating school levy referenda passed in 2013, or 51 of 59 school districts. That is the highest approval rate recorded by the MN School Board Association. The total increase in school levies for 2014 was $119 million.
I encourage you to see if you are eligible for the Homestead Credit Refund or Renter’s Credit. Some of you who may not have been eligible in the past may be eligible this year due to expanded refunds and credits. You can find more information on eligibility and how file for your property tax refund at the Department of Revenue website.
Please stay in touch during this year’s Legislative Session by sharing any questions, comments or other feedback. You can reach me by phone at (651) 296-4255 or by email at email@example.com.
Representative Lyndon Carlson