DFLs property tax proposal seems to confuse even its own authors

Taxpayer's League Press Release April 29th, 2008 

ST. PAUL – House DFLers yesterday introduced this year’s version of the Omnibus Tax bill and with it their attempt at property tax reform. Among the highlights of their Tax bill is an overhaul of the state’s property tax relief programs that they claim would make 95% of Minnesotans eligible for some form of property tax relief.

The intent of the legislation, introduced by Representatives Ann Lenczewski [DFL-Bloomington] and Paul Marquardt [DFL-Dillworth], is to tie Minnesotans’ property tax payments directly to their income. Trumpeted as a simplification of the current system and a way to force wealthy Minnesotans to pay their fair share, under the new system any family earning more than $200,000 a year – the DFLs definition of “rich” – would see a tax increase.

But according to calculations made by the Department of Revenue and released today during a committee hearing, when the new property tax system is fully phased-in, nearly 69% of Minnesota homeowners will see a tax increase.

“I’m not sure how the bill’s authors miscalculated the fiscal impact of this legislation. How could they claim that 95% of Minnesotans will be eligible for property tax relief when the numbers actually show that 69% of homeowners will see a tax increase,” said Phil Krinkie, president of the Taxpayers League of Minnesota and a former chairman of the House Taxes Committee. “Perhaps they were just too eager to put forth another scheme to take from the rich and give to the poor. Whatever their thoughts, capping property taxes as a percentage of income is a bad idea that will lead to a local government spending spree.”

The Tax bill, which will continue to be debated in various House committees this week, has no direct equivalent in the Senate and will most likely meet opposition from Governor Pawlenty and a majority of Minnesota homeowners who would see a tax increase if this bill were to become law.

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