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      A Fair Tax System for Minnesota’s Middle Class

      Posted on June 20, 2013 at 8:00 AM


      Gov. Dayton and the DFL legislature invested $400 million in middle class property tax relief in the recently passed budget to help Minnesotans and restore tax fairness.
      Governor Dayton and the DFL legislature invested $400 million in middle class property tax relief in the recently passed budget to help Minnesotans and restore tax fairness.

      Middle class Minnesotans have endured a decade of property tax increases. Governor Dayton and the DFL legislature invested $400 million in middle class property tax relief in the recently passed budget to help Minnesotans and restore tax fairness. The investment provides new resources for the following:

      • Homestead Credit Refund
      • Renter’s Property Tax Refund Credit
      • Local Government Aid
      • City and County Sales Tax Exemption

      Homestead Credit Refund

      A new $120 million investment in the Homestead Credit Refund will provide significant direct property tax relief to middle-class homeowners. Under the new budget, more than 150,000 additional homeowners will be eligible for the refund. Current refund recipients will benefit as well, the new law is expected to increase the refund for 300,000 homeowners who already receive it. 

      Renter’s Property Tax Refund

      Gov. Dayton and legislature also invested $15.5 million into the Renter’s Refund program to provide new aid for renters. This aid will help neediest renters: the disabled, the low-income, and the elderly. In total, the new investment means that 66,000 filers will receive a larger refund and 10,000 new filers will be eligible.

      Local Government Aid

      Local Government Aid helps ensure Minnesota’s cities can pay for essential services like police, fire, and roads, while keeping property taxes under control. This year’s budget invests $80 million in this critical program all across the state. 

      City and County Sales Tax Exemption

      Another way, Gov. Dayton and the legislature worked to reduce property taxes was by exempting cities and counties from the state sales tax – saving property tax payers and local governments a total of $100 million a year.

      These new investments in property tax relief were long overdue. During the past decade, property taxes increased by nearly 86 percent. These new investments made by Gov. Dayton and the legislature stops the increasing tax burden on middle income families and help move Minnesota forward.