This post was contributed by a community member. The views expressed here are the author's own.

Health & Fitness

Minnesotans Need Property Tax Relief

The last decade has seen an enormous increase in property taxes throughout the state. Since 2003, rates have increased by 86 percent. Now is the time to address this problem.

The last decade has seen an enormous increase in property taxes throughout the state. Since 2003, rates have increased by 86 percent.

This is an ever growing burden on the middle class. Property taxes are regressive. They are not based on one’s ability to pay, but rather on where one lives. 

In order to understand why property taxes have increased so dramatically, we need to look back at state government actions in the past 15 years. Policy changes in 1999 and 2000 saw massive tax cuts which set us up for the decade of deficits. In almost every year since 2003 the state has faced a shortfall. 

Find out what's happening in Oakdalewith free, real-time updates from Patch.

So what did we do to fix the deficits? We used shifts and gimmicks, borrowed money from our schools, drastically cut spending and used one-time money. We never addressed the long-term sustainability and stability of our state budget. 

The cuts that were enacted decreased the amount of local aid going to cities and counties. They also decreased the amount of state dollars going to fund education.

Find out what's happening in Oakdalewith free, real-time updates from Patch.

In essence, the state government left local governments holding the bag. Local governments were forced to raise property taxes. Schools needed to stay open. Firefighters and police officers needed to be paid. Pot holes needed to be filled. The only source of revenue was property taxes. 

In 2002, total property taxes across the state were $4.59 billion, while the 2013 estimate is $8.55 billion — nearly $4 billion in additional property taxes. 

Now is the time to address this problem. 

We are putting the state budget on a sustainable path forward and ending the cycle of deficits. This will provide stability for local governments. 

But more importantly for middle class families are the property tax reductions we include in our budget. The tax bill saves up to $450 million and the education bill allows for $150 million in additional relief by paying for certain levies. 

Local Government Aid (LGA) increases and extends to additional cities, including Maplewood. County and township aid is also raised. We boost the renter’s credit and grant sales tax exemptions to cities and counties. 

Through these initiatives, the property tax reduction average across Minnesota for residential homesteads is 4.9 percent. This is a needed respite for middle class families. 

Property tax relief also helps businesses. One of the most common complaints I get when I visit with small business owners is the skyrocketing property tax rates. This addresses their concern. Coupled with the reduction of the corporate tax rate and targeted economic development investments, Minnesota is making a major commitment to our business community. 

Minnesotans can expect to see a decrease in their property tax bill for the first time in a decade. It’s long overdue. 

Please contact me with your thoughts and concerns about the budget, taxes or any other issue. I welcome input from the community. You can reach me at sen.chuck.wiger@senate.mn or 651-296-6820. My office number 205 in the State Capitol, 75 Rev. Dr. Martin Luther King Jr. Blvd. St. Paul, MN 55155.

We’ve removed the ability to reply as we work to make improvements. Learn more here

The views expressed in this post are the author's own. Want to post on Patch?

More from Oakdale