Property Taxes Expected to Decrease for First Time in a Decade
ST. Paul, Minn. – New information released Tuesday, July 30, by the Minnesota Department of Revenue shows property taxes statewide are projected to decrease for the first time since 2002. This year’s budget solution included increased aid to local governments, sales tax exemptions for cities and counties, and direct property tax refunds for hundreds of thousands of homeowners and renters. Together, these investments are projected to decrease property taxes next year by an estimated $121 million, or 1.5 percent.
“We came into this session with a commitment to stabilize Minnesota’s budget honestly and we wanted part of that solution to be property tax relief,” said Senator David Tomassoni (DFL-Chisholm), chair of the Environment, Economic Development and Agriculture Budget Division.
Since 2002, property taxes have gone up 86 percent, placing a huge burden on the middle class. Those increases were due in large part to repeated cuts in aid to local governments, and cuts in direct property tax refunds for Minnesotans.
In an effort to reduce the rising property tax burden, the DFL Legislature and Governor Dayton made crucial investments this session in property tax relief. More than 137,000 homeowners and 30,000 or more renters will now be eligible for a refund in 2014. Furthermore, the combined state aid increases and refunds mean St. Louis County will see a 4.1 percent decrease in 2014 countywide property taxes and Itasca County will see a 0.4 percent reduction.
“Not only did we deliver on our promise of property tax relief, but we were able to invest in priorities Minnesotans broadly share and support, like education and job creation,” continued Sen. Tomassoni.
While the newly approved increases for homeowner and renter property taxes won’t be available until next year, Minnesotans should still find out if they qualify for a refund and complete an application by August 15 on the Minnesota Department of Revenue website.