Minnesota's Revenue Commissioner says the legislature passed meaningful property tax legislation during the 2013 session.
Myron Frans is traveling the state delivering that message. Frans told officials in Moorhead the new budget structure takes a more comprehensive approach to property taxes where everyone wins.
"Businesses and residents around the state have complained continually about the ever-increasing rise in property taxes, which had increased 86 percent in the last ten years. Whether you're a business owner or a home owner, you've seen property taxes go up. So this is a real opportunity to start a trend where we stop raising property taxes and invest in education and infrastructure," said Frans.
In the past twelve years, local government aid to Minnesota cities declined 24 percent, while property taxes increased. With Governor Dayton's new budget, LGA will increase 18.5 percent, with property taxes projected to decrease by 121 million dollars in 2014. Representative Paul Marquart says the relief in property taxes will be meaningful for all Minnesotans.
"This will provide great relief for our senior citizens on fixed incomes, our families, our farmers, our small businesses who have seen property taxes go up 86 percent in the past ten to twelve years. And if you dice that down a little further, home owners saw their property taxes double, and farmers have seen theirs go up two and a half times in the last dozen years. When you see what we have here - an increase in local government aid, the property tax refund program, the new homestead credit refund - we will for the first time in several years provide significant and real property tax relief people are going to see."
Marquart describes Minnesota's tax structure as a "three legged stool" that will now be able to stand equally on all three legs.
