Senate Reforms provide Property Tax Savings
ST. PAUL, Minn. –With Monday’s passage of the Senate omnibus tax bill, Minnesota will see major reforms for its tax code. These reforms modernize the state’s tax system to support a modern economy, and will provide property tax relief for families and businesses.
“There is no more kicking the can down the road. It’s a responsible and honest bill that fixes the structural deficit problem that we’ve been experiencing for the last decade,” said Senator Kent Eken (DFL – Twin Valley). “For the first time in a decade we have a budget that is actually going to be balanced, and prepare us for long-term success.”
The bill makes property tax relief a priority, as these regressive taxes are not based on ability to pay and have risen by 86% since 2003. Up to $450 million in relief is provided by the Senate tax plan, with Greater Minnesota seeing an estimated 6.3% drop in property tax rates and increased aid to cities through Local Government Aid reform. These moves will help to relieve the burden faced by Minnesota’s families and businesses.
Also included in the bill is a Disparity Reduction Credit, which lowers the property taxes for communities that border North Dakota from 2.3% to 1.9%. This bill comes in response to North Dakota’s oil boom, that is making it difficult for border communities to retain jobs.
“This bill will also help our border communities do better. This credit is making our businesses, our communities more competitive with North Dakota which is a benefit to the whole state,” said Eken. “That’s why we need programs like that to help not just those border city communities but to help the whole state prosper.”