Last month homeowners, farmers, renters and small businesses across Minnesota received their Truth-in-Taxation statements in the mail that detailed their expected property taxes for next year.
Unfortunately, due to the elimination of the Market Value Homestead Credit passed by the Republican majority, your property taxes likely increased. Nearly all of us in Northern Minnesota will feel the effect. Here is some background information about the Homestead Credit, and why I voted against eliminating it.
The homestead credit has been around for decades as a way the state reduces the property tax burden on 95 percent of Minnesota homeowners through a targeted credit that automatically shows up on your property tax statement.
The majority party proposed eliminating the Homestead Credit as part of their budget solution. Their bill was vetoed during the regular session by Gov. Dayton. In the end, after a lengthy government shutdown, the governor compromised and the elimination of the Homestead Credit, which the Republicans pushed so hard for, became law. I, along with all DFL legislators, voted against elimination of the credit in both the regular and special sessions.
The elimination of the credit will affect homeowners and businesses differently, but Northern Minnesota is likely to take a big hit. Rural Minnesota homeowners receive 55 percent of the Market Value Homestead Credit and almost 60 percent of the $270 million projected increase in statewide property taxes will be borne by rural Minnesotans.
That means senior citizens on fixed incomes, families, farmers and small businesses in rural Minnesota will pay higher property taxes next year, and the years following. Property taxes are already the greatest burden for many small businesses in our state, and these tax hikes will only make it more difficult for companies to hire new workers or purchase new equipment.
What makes this so objectionable is that the majority party fought tooth and nail to prevent the very richest Minnesotans from contributing a single penny to solve the deficit. They even blocked a tax proposal that would only increase taxes on millionaires - affecting less than 1 percent of the state. It would have affected a mere 68 tax filers in all of St. Louis County!
The fact that the majority party would rather tax seniors, families and small businesses than ask one penny from wealthy Minnesotans says a lot about what their vision is for Minnesota’s future.
Millionaires and wealthy special interests have enough advocates at the Legislature. I am looking out for the vast majority of you who cannot afford more property tax increases. That’s why I have signed onto a bill that would restore the Homestead Credit next year. Minnesotans and Minnesota businesses need the state to be a supporter, not an obstacle, to growing jobs, strengthening our economy, and affordability for families and farmers.
If you have any questions about how the Homestead Credit elimination will impact you, please let me know. I can be reached on my cell phone at 218-780-2278.
David Dill
State Rep., District 6A
Crane Lake, Minn.
Good job, Representative Dill! Seniors, working poor and others are literally being taxed off their property these days. With Obama-based EPA regulations on coal-fired power plants that will dramatically increase our electric bills, an insensitive school board that wants to raise even more taxes after wasting $120 million (after interest) to allegedly save money on new schools, and the overall cost of living, we need the homestead credit. Keep up the good work and here is wishing you success in the legislature on this issue. We need it!
I thought that the character, Ebenezer Scrooge, was fictional???
A rather interesting mix of ideas. Lack common logic, but interesting.