Property tax cap included in final tax legislation

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Minnesota cities and counties will see an increase in state aid and, in return, the Associated Press reports that they will be required to hold the line on property taxes.

A wide-reaching tax bill finalized late Saturday includes a one-year limit on local levies. The cap bases the limit on the new aid a local government gets.New local levies will be held to three percent or less, so many cities could have to freeze their tax rates. It is designed to keep rates from rising for 2014 property taxes.

The bill also includes some direct-to-homeowner relief.

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