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Politics & Government

House defeats renters' credit

The House has again rejected giving renters an income tax credit in lieu of property tax relief.

Supporters called it a “tax fairness” bill. They say the state has done a lot to cut local property taxes…but renters aren’t sharing in those benefits.

Supporters say it’s false when opponents claim renters aren’t paying any property tax.

"When I get my statement from my landlord every year, when it says my rent is going up by $30, $50, $100, whatever it is -- one of the reasons listed is for an increase in property taxes," said Rep. Kylie Overson (D-Grand Forks).

House Majority Leader Al Carlson (R-Fargo) says what the Legislature has done isn’t so much a property tax relief bill – it’s an education funding mechanism, where the state taxes over more of the funding for K-12 schools, and asks the local school districts to substantially lower their mill levies.

"But to make craft-out special little spots, and say that these deserve it because they're renting and the rent didn't go down, is not the solution to the problem," said Carlson. "It's an expensive solution for just a few people."

The bill failed on a 65 to 26 vote.

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