But many homeowners will see their tax bills increase anyway because lawmakers cut the Market Value Homestead Credit as part of a debt deal to end the government shutdown earlier this summer.
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Gov. Dayton and lawmakers earlier this year replaced the homestead market value credit, which lowered many Minnesotans' property taxes, with a new program. But local governments say the new plan is raising property taxes significantly. And poor, rural Minnesotans are bearing the brunt of it.
Some homeowners say their property taxes are going up 40 or even 60 percent. Much of that increase comes after the state government cut the Market Value Homestead Credit, and Ely officials say they need to raise taxes to make up for cuts in Local Government Aid
The Legislature's decision to replace the homestead tax credit with a market value exception saved the state money ... by shifting the cost onto local property taxes. That's the main ingredient in a mix of factors pushing up property tax bills around the region.
A bill from the chairman of the House Taxes Committee would grant larger tax refunds to homeowners whose property tax bills are soaring. The bill would also slash taxes for all businesses. But the top House Democrat on property taxes says Republicans missed a chance to cut property taxes earlier this year.
The state's new tax bill ends the homestead market value credit, which lowered property taxes on many homes. Forum Communications' Don Davis reports poor, rural areas will likely be among the hardest hit. Homeowners will get the details next month when "truth in taxation" statements arrive in mailboxes.
The credit was cut as part of a debt deal to end the government shutdown earlier this summer. But MPR reports apartment renters and small commercial properties will likely be hit the hardest -- with tax increases around 17 percent.
Gov. Mark Dayton told a University of Minnesota audience resistance to paying more in taxes will be "the death of this country if it's not corrected." Dayton says he'll work again to raise taxes paid by the wealthiest two percent of Minnesotans. Republican resistance to that plan was at the center of the stalemate that produced last year's government shutdown.
DFL lawmakers say higher property tax bills appearing in mailboxes show that Republicans were not honest when they claimed to have balanced the state's budget without raising taxes. But the current political clamor over taxes is likely just a warm-up for next year, which happens to be an election year.
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