| For Immediate Release | For more information contact: |
| May 4, 2001 | Jon Peterson (651-296-5989) |
(ST. PAUL) With a vote of 107-26, the Minnesota House of Representatives on Friday passed a tax reform package that reduces Minnesota property taxes by almost $2.3 billion over four years, with special attention paid to reducing property taxes on homes, farms, apartments and businesses.
"The House plan has the property tax relief that Governor Ventura proposed, but without the pain of expanding the sales tax to cover services," said Rep. Rich Stanek (R-Maple Grove). "Overall property tax rates would drop, on average, by 16 percent. Most property owners would see lower property tax bills under this package."
The House Omnibus Tax Bill also returns the entire tax surplus ($865 million) in the form of a sales tax rebate, eliminates the regressive healthcare provider tax ("sick tax") on medical services, and includes a capital gains tax reduction and expanded research and development credits to spur business investment in the state.
Like the governor's proposal, the House tax reform package has the state pick up most of the costs of local school property taxes by eliminating the General Education. But Rep. Stanek said the proposal goes further, by reducing class rates to drive down property taxes for homeowners, agricultural land, commercial/industrial property, seasonal recreational property, and apartments.
The tax plan provides double-digit property tax rate reductions on commercial and industrial property. Minnesota businesses have been paying some of the highest property taxes in the nation and this bill finally gives needed tax relief to Main Street businesses, Stanek said. But what is most significant is that the tax reform treats all residences alike with the same 1.0 percent class rate, including apartments.
The rate reductions in rental property are especially important, Stanek said, because they would provide market incentives to spur the creation of more affordable housing. The House proposal would immediately lower rates for newly built apartment buildings and then phase in over four years a reduction for existing apartments.
Rep. Stanek serves District 33B in the House of Representatives. He is the chair of the Judiciary Finance Committee and also serves on the Crime Prevention Committee, the Civil Law Committee and the Ways and Means Committee.
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