WDAY.com

WDAZ: Your Home Team

Published August 30, 2012, 07:12 PM

Policy Group Wants Property Tax Credit Back

The policy group "Alliance for a Better Minnesota" is touring the state trying to gain support to restore a property tax credit.

By: David Schwab, WDAZ

The policy group "Alliance for a Better Minnesota" is touring the state trying to gain support to restore a property tax credit.

The group is calling on Republican lawmakers to restore the Market Value Homestead Credit that was changed last year. The Homestead Credit was replaced with with a different program called the homestead market value exclusion, which is intended to lower the value of a person's home for tax purposes. What this actually did for taxes depends on who you ask.

Alliance for a Better Minnesota talked with people in Crookston and Thief River Falls today who say their taxes have gone up. The policy group blames the end of the Homestead tax credit for the increases.

Ryan Furlong, Alliance For a Better Minnesota : "Depriving individual homeowners of up to 304 dollars in direct property tax relief and increasing property taxes of 95 percent of people in Minnesota."

Furlong is calling on state representative Deb Kiel and other republicans who voted to end the credit to restore it.

Furlong: "But considering that legislative republicans replaced the Homestead credit with a program that has nowhere near the same amount of property tax relief, greater Minnesotans should not expect much in the way of property tax relief. "

Representative Kiel disputes the group's claim that most property owners saw a tax hike. She says if they did it was likely because property values went up.

Kiel: " More importantly the change produced more people keeping tax dollars rather than less people."

Kiel says dropping the Homestead credit helps keep tax dollars local.

Kiel : “So that the state couldn't take property taxes off the top and our property taxes would stay within our county, our cities and our school districts. "

Kiel, who is up for reelection this November says the group's motives for this state wide tour are highly political.

Tags: