For the past 10 years, property taxes on Minnesotans have gone up almost 90% and are approaching an unsustainable level. Middle class families and small businesses are being hammered by an ever-growing property tax burden. The Senate has passed legislation to provide hundreds of millions of dollars in needed relief to our local communities.
Every single Minnesotan has felt the increase. It is a problem that was neglected for far too long. The education finance bill took significant steps to reducing property taxes, in addition to making the reforms and funding increase necessary to maintain our world-class education system.
The education finance bill buys back $150 million in school levies. Local governments are able to remove pressure from the local property tax system. Relief won’t just go to those who qualify for refunds, but will benefit all of our state’s tax payers.
Massive tax cuts in 1999 and 2000 depleted state government resources. We’ve been dealing with state budget deficits since then, resulting in significant cuts to Local Government Aid and education. Local governments were forced to raise property taxes to make up for the shortfall from the state.