Minnesota home and business owners would save $80 million in property taxes every two years under a proposal unveiled Monday.
The plan by state Rep. Greg Davids, chairman of the House Taxes Committee, would target tax relief for homeowners who experienced the largest property tax hikes. It also would cut the property tax burden for business owners by about 18 percent outside the Twin Cities and 4 percent in the metro area.
Davids also wants to begin phasing out the state's share of the property taxes over the next 20 years.
The goal is "to provide more property tax relief for Minnesota business leaders and homeowners, in a more direct way," said Davids, R-Preston.
Davids' plan would largely help Minnesota home and business owners outside the Twin Cities, where property taxes have risen fast and where businesses are generally smaller.
Davids made the announcement after touring the state and getting steady criticism for a little-known change that did away with the state-backed market value homestead tax credit, causing many homeowners to pay hundreds of dollars more in property taxes each year.
Legislators from both parties have been touring the state to explain the change, which helped the state beat down a $5 billion projected deficit.
Davids said the property tax relief package was not a response to the criticism or an effort to restore the previous tax credit, a plan Democrats have been pushing. He said the previous system lacked transparency and often put an unfair financial burden on local governments.
