Republican state Rep. Greg Davids was in Willmar Tuesday night, saying the governor proposed eliminating a tax credit that could increase property taxes for many Minnesotans.
The problem is, Gov. Mark Dayton said it was Republicans who came up with the idea and pushed it in the final days before the budget agreement. On Thursday, Dayton sent a letter to Davids telling him his account is "completely and absolutely untrue."
Davids, who chairs the powerful House Taxes Committee, was in Willmar to explain tax changes that are now law. According to the West Central Tribune, Davids told the crowd that Dayton proposed eliminating the market value homestead credit to help wipe out the $5 billion projected budget deficit.
In his letter, the governor said Republicans who control the Legislature inserted the provision in their budget proposal, "which I vetoed."
Dayton said none of his budget proposals included a reduction or cut of the homestead tax credit. But the governor said he agreed to the elimination – which Republicans insisted on – as part of the final compromise with legislators to end the 20-day government shutdown.
"However, I did not agree with them then, nor do I now," Dayton wrote. Later, he added: "I ask you describe accurately who proposed and insisted upon those actions."
Davids said late Friday he doesn't dispute the governor's letter, but said they are talking about two different things.
Republicans first proposed the idea, Davids said, but Dayton included the provision in his first offer during final budget negotiations.
