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Surprise? Counties raise property taxes to make up for lost state aid

A study by the state auditor’s office shows Minnesota’s counties have been steadily increasing the tax burden on residents to make up for dwindling state grants, according to a story in Finance and Commerce.

The report found that between 2003 and 2007, the counties’ share of revenue from taxes increased from 37.5 percent to 41.5 percent, while their share of revenues from state grants fell from 33.3 percent to 28.8 percent, the report found.

“There is a direct correlation between the decrease in state grants to counties and the increase in taxes to replace those revenues,” State Auditor Rebecca Otto said in a statement that accompanied the report’s release. “This information should be part of the final discussions about the state budget at the Capitol.”

Comments (2)

  1. Submitted by John Roach on 05/04/2009 - 11:46 am.

    So, the governor’s insistence on not raising taxes makes him look “good” to his GOP fans, but the reality is that more Minnesotans are paying higher, regressive taxes that aren’t based on their ability to pay.

    This is how the Republican tax shell game works.

  2. Submitted by Bernice Vetsch on 05/04/2009 - 03:59 pm.

    John R: And a goodly number of, hate to say it, the GULLIBLE persons who lap up all the anti-tax nonsense are not seeing the light no matter how many articles are written explaining the truth.

    Antidote to the Tea Party and the governor’s anti-tax rally a few days ago?

    Tuesday, May 11, noon to one in the Capitol Rotunda —- Invest in Minnesota Rally

    From the flyer: “Join us at this critical time in the legislative session to speak up for fair revenue-raising. Legislators need to hear that their constituents want fair taxes to be part of the solution in order to adequately fund services.” After the rally, the organizers “will have additional action steps planned to get our message to legislators.”

    See http://www.investinmn.org for more information.
    Let your rep and senator know how you feel by phone or e-mail if you cannot attend.

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