Minnesota homeowners, renters and businesses would get about $103 million in property tax relief under a proposal that sailed unanimously through the state House on Friday.
Homeowners would see a one-time increase in homestead credits, providing $12.1 million in property tax relief to 500,000 Minnesotans. Renters will get a one-time increase in a tax credit, totaling $12.5 million for 350,000 Minnesotans. Farmers will get $18 million in property tax relief.
“Our economy is growing and we have already cut taxes for more than 1 million middle-class Minnesotans,” said House Majority Leader Erin Murphy, DFL-St. Paul. “Instead of catering to wealthy special interests, this bill provides a further boost to middle-class homeowners, renters, farmers and small businesses.”
House Taxes Committee Chairwoman Ann Lenczewski said the tax relief will aid the state’s economic recovery. “We believe this is a responsible way to continue expanding our economy from the middle-out while maintaining our stable budget into the future,” said Lenczewski, DFL-Bloomington.
The measure includes several business tax breaks, including a statewide property tax exemption for commercial and industrial businesses worth less than $150,000. All businesses with property valued at less than $1.1 million will get a tax break, under the plan.
The DFL-controlled Legislature already passed more than $443 million in tax cuts for more than 1.1 million Minnesotans.
Republicans have criticized Democrats for not returning more of the state's $1.2 billion projected budget surplus.
The measure now goes to the Minnesota Senate for consideration. DFL Gov. Mark Dayton has been supportive of tax relief measures this year.