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Health & Fitness

New Budget Reduces Property Taxes

State lawmakers passed a new budget this year that makes good on our promise to deliver long-overdue property tax relief.

As I spoke with Minnesotans at their doors and over the phone during the 2012 campaign, I heard a common theme: property taxes are too high.

When you crunch the numbers, you’ll find that property taxes have increased by 86 percent since 2002. That kind of financial burden on our seniors, small businesses, and middle class families is simply not acceptable if we want to build a thriving economy.

That’s why state lawmakers passed a new budget this year that makes good on our promise to deliver long-overdue property tax relief.

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According to new projections from the Minnesota Department of Revenue, our budget will reduce property taxes in 2014 by an estimated $121 million, or 1.5 percent—the first decrease in over a decade. This is made possible by increasing aid to local governments, exempting cities and counties from paying sales tax, and providing direct relief to homeowners and renters.

Here’s a quick look at how the direct property tax relief will impact Minnesotans in 2014:

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  • Over 300,000 homeowners will see their Homestead Credit Refund increase by an average of $212. More than 137,000 additional homeowners will qualify for a refund.
  • Over 65,000 renters will see their Renter’s Credit increase by an average of $179. More than 10,000 additional renters will qualify for a refund.

The new property tax projections are one of many signs that Minnesota’s economy is headed in the right direction.

For example, our unemployment rate has fallen to 5.2 percent, which is well below the national rate of 7.4 percent. In addition, Moody's Investors Service, a major credit rating agency, recently revised the state's financial outlook from "negative" to "stable."

When you take other components of our new budget into account, such as providing all-day Kindergarten for every child free of charge, expanding financial aid and freezing tuition for college students, and providing the largest business tax cut in state history, we have every reason to be optimistic about our future.

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