‘Fix’ planned for property tax change that hurt rural areas

A little-known change in property tax laws passed by the Legislature apparently is hurting rural Minnesota homeowners and businesses disproportionately and will be fixed, a Republican lawmaker promises.

But state Rep. Larry Howes of Walker tells the Fargo Forum that it’s not clear what the fix will be. He said House Speaker Kurt Zellers is on board to change the system when the Legislature convenes in January.

The problem, says the story:

Lawmakers and Gov. Mark Dayton earlier this year dropped the homestead market value credit program, which lowered many Minnesotans’ home property taxes. They replaced that program with another one designed to do much the same thing. However, local governments say the new program will push up property taxes on lower-value homes and shift taxes that homeowners paid onto businesses and industries.

Poor, rural communities are affected much more than suburbs.

 And Howes said a property tax refund program may be used to give more money back to those whose taxes rose. 

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Comments (2)

  1. Submitted by Jeremy Powers on 10/17/2011 - 08:32 pm.

    Apparently the Republican legislators put the same careful thought into this new tax plan, that they pushed for, as they did for everything else this past legislative session. That was the worst legislative session in Minnesota history because a bunch of legislative newbies had no idea what they were doing, leading to a shutdown and now dangerous tax policy.

  2. Submitted by dean braun on 10/17/2011 - 10:19 pm.

    So the powers that be replaced the homestead market value credit program and replaced with another that is designed to do much the same thing. Why?? Sounds kind of non-sensical to me. And so now this new program has to be changed because it is disproportionate to certain tax payers. Gosh, it sounds to me that the market credit program should just be put back into place and the powers that be stop monkeying around with things that are working. Typical government work. Way to be Gov. Dayton and lawmakers. Another job well done, imbeciles.

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