Homeowners' latest tax statements don't reflect the reduced home values that city assessors promised, but officials say not to worry: They have to wait until the state of Minnesota declares north Minneapolis a disaster area. The real bill should show the reduced property values -- and lighter taxes.

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.

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.

Recent changes to the state's property tax rules are increasing taxes on apartment owners, and many of them may pass those costs on to their tenants. High demand and few vacancies aren't helping the situation for renters.

The bill from House Republican Greg Davids would immediately cut and eventually phase out business property taxes. The bill would also reduce tax refunds for renters.

After two and a half hours of debate Friday, Republican Senators agreed to reduce and eventually eliminate the state’s property tax on businesses and give married couples an income tax break. The $100 million dollars in tax revenue would be covered with the state’s budget reserves. The House has passed companion legislation, but there are several differences. Gov. Mark Dayton does not support the proposal.

The proposal would cut taxes by about 30 percent over the next six to 12 years. The House Taxes Committee Chairman Greg Davids told the Pioneer Press it would be the "bigger job creator." DFL Gov. Mark Dayton hasn't ruled out the Republican plan, but doesn't know how they plan to pay for the tax cut.

Rep. Greg Davids, chairman of the House Taxes Committee, says the current policy is hurting Minnesota businesses, which often watch customers come in to browse but then leave to order goods online and get out of paying taxes.