Mission:

Tax Aids and Credits include various property tax relief programs established by the state, such as property tax refunds and aids to local governments. These programs are administered by the Department of Revenue.

Statewide Outcome(s):

Tax Aids and Credits supports the following statewide outcome(s).

Strong and stable families and communities.

Efficient and accountable government services.

Context:

Property taxes are a primary source of funding for local governments. Property tax amounts are not linked to ability to pay and can be a significant cost relative to income for some taxpayers.

Tax Aids and Credits programs provide property tax relief for individual taxpayers, land owners and local taxing jurisdictions, including counties and cities.

Funding Source: State General Fund

Strategies:

Target property tax relief based on income and ability to pay to reduce regressivity of the property tax.

Provide general support aid and property tax relief to help make services provided by local governments more affordable.

Help mitigate sudden property tax spikes due to unforeseen circumstances or state tax policy decisions.

Incentivize behavior which the state deems beneficial to achieving statewide outcomes.

Measuring Success:

Track measures of tax progressivity and regressivity (e.g. Incidence Study and Suits Index)

Study property tax burdens relative to income (e.g. Voss Report)

Analyze local government costs to provide services to taxpayers (e.g. local tax rates, financial reporting)