Early this morning, shortly after midnight, Senate Republicans passed tax breaks for businesses paid for with tax increases on the poor and middle class. The bill would raise taxes on renters by cutting their property tax refunds and lead to significant property tax increases statewide, with an extra hit to Minneapolis, St. Paul, and Duluth. The Department of Revenue estimates that property taxes would increase by approximately $1 billion statewide over the next four years.
“The Republicans are raising taxes on the poor and middle class, while giving corporate tax cuts through a phase-out of the state business property tax. With corporate profits at an all-time high right now, they don’t need tax cuts when people are paying more,” Marty said. “Republicans are continuing former Governor Pawlenty’s legacy of balancing the budget on the backs of the poor and the middle class,” he added.
Department of Revenue estimates:
• Renter’s property tax refund program cut: $186 million. This is an average annual tax increase of $190 on seniors and the disabled, and $335 for other renters.
• Overall, the bill contains property tax increases of $395 million in CY 2011/12, $579 million in CY 2013/14.
• Local aid cuts of $487 in FY 2012/13, $525 in FY 2014/15. Minneapolis, St. Paul, and Duluth would lose all their aid in four years.