Albert Lea Tribune: GOP says bye-bye to homestead credit

Published Friday, March 30, 2012; 9:02 am
By Paul Marquart, Guest Columnist

Tough luck. That’s the message that Minnesota Republicans sent to homeowners in Greater Minnesota last week when they passed a tax bill that didn’t address the property tax increases they caused last session.

To understand why their bill was particularly troubling for Greater Minnesota it is helpful to review what happened last year. The budget the Republicans passed to end the state shutdown completely eliminated the homestead credit, a tax benefit that homeowners had cherished and valued for over four decades. This raised property taxes on homeowners, farmers and small businesses.

If you are curious what the elimination of the homestead credit meant to you, I encourage you to take out your 2011 property tax statement and compare it your 2012 statement, which should be coming soon in the mail. You will notice that on line 4A from your 2011 property tax statement the word “homestead” has vanished from your 2012 statement — along with your tax relief.

The permanent elimination of the homestead credit led to $370 million in property tax increases in 2012. The state now has the highest property tax level in our 154-year history. Over the last 10 years property taxes for homeowners have now increased by 92 percent. For farmers, property taxes have increased 150 percent. And Greater Minnesota was disproportionately harmed. Of the property tax increases last year, 64 percent of them came from Greater Minnesota. Rural Minnesota is hit with three times the property tax increases as the metro area. Rural homeowners’ property taxes rise eight times higher than metro homeowners — that’s right — eight times higher and rural businesses saw their taxes rise three times higher than in the metro area.

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The Forum: Dem lawmakers want to bring back Minnesota tax credit

Published September 13, 2011, 01:27 PM
By: Associated Press, INFORUM

Forum file photo

ST. PAUL, Minn. — Two Democratic state lawmakers say the elimination of a homestead tax credit as part of Minnesota’s deficit fix will hurt property tax payers.

Reps. Ann Lenczewski of Bloomington and Dilworth’s Paul Marquart vowed Tuesday to introduce legislation next year to reinstate the homestead market value credit.

Read more…

DL-Online: Lawmakers can’t blame Dayton

DL-Online – Area Voices
Detroit Lakes, Minnesota
Published: August 31, 2011 2:06:19 PM CDT

Maybe it’s a Republican conspiracy to drive DFL Gov. Mark Dayton over the edge.

Or may be it just shows breathtaking chutzpa.

Whatever the case, Dayton is understandably irate about a claim by Republican State Rep. Greg Davids that it was Dayton — not the Republican legislative leadership — that proposed ending the Market Value Homestead Credit, a tax shift that is resulting in higher property taxes across the state.

If we remember right — and it wasn’t that long ago — Dayton wanted to raise income taxes on the rich.

He had to accept higher property taxes instead as part of a settlement to end the 20-day government shutdown.

Republicans went to the mat over “no new taxes.”

By that they mean income taxes, apparently, since their policy is resulting in higher property taxes from Austin (15 percent) to St. Louis County (5.7 percent) to Beltrami County (7 percent) and almost certainly to Detroit Lakes and Becker County.

 Read more (including a mention of Rep. Paul Marquart)