Minnesota House of Representatives
Republican Caucus

St. Paul, Minnesota If the Senate DFL continues to block landmark property tax reform, homeowners would lose a property tax reduction of more than twenty percent. On Wednesday, House leaders added that the Legislature and Governor would miss the best opportunity in a generation to bring permanent reform to the state's property tax system. One of only two states to have a complicated multi- tier tax system for homes, any Minnesota home worth more than $76,000 is in the highest taxation tier.

"The only roadblock to landmark property tax reform - the only barrier between Minnesota homeowners and a 22 percent property tax cut is the Senate DFL," said House Speaker Steve Sviggum (R-Kenyon). "We are simply asking the Senate to hold honor to the agreement they made more than a week ago when Senator Moe shook hands with myself and Finance Commissioner Pam Wheelock. The Senate is trying to keep us in the left lane long enough to miss the exit to real, permanent property tax reform."

The latest offer put forth by House leadership to end the property tax impasse would provide a 22 percent property tax reduction for homeowners, 23 percent for agricultural land and 12 percent for commercial/industrial property and small businesses. It would eliminate the general education levy, the metro transit tax and have the state takeover the entire cost of the state court system. Long-term reform is achieved by assuming these mandates on local property taxpayers and also including reforms to empower local taxpayers to have a greater say over their property tax bills.

"Our message to the small business owner, to the homeowner and to the farmer is clear: the Senate DFL is blocking your property tax cut ," said House Majority Leader Tim Pawlenty (R-Eagan). "Whether it be the multi-tiered, complicated rate structure for homes that puts anyone with a home worth more than $76,000 in the highest bracket or taxing small businesses at one of the highest rates in the country, the DFL Senate stands in the way of reform and fundamental fairness for property taxpayers."

On Tuesday, Senate DFL leaders snubbed Governor Ventura and House Republicans by canceling a meeting to end the impasse and refusing to bring forth points on which to compromise. Since the May 25th budget agreement was made, Senate leaders and committee chairs have sought to undermine the agreement by increasing spending beyond agreed upon targets, gutting tax reform, and cutting measures designed to provide fairness in education funding for rural and suburban schools. One proposal by Senate Tax Committee Chairman Larry Pogemiller (DFL-Minneapolis) would have increased property taxes for small business and commercial/industrial property.

"The DFL is trying to run out the clock in hopes that when a government shutdown comes about, people will throw aside tax reform just to keep the doors of state government open," added Sviggum. "If and when government shuts down, the Senate DFL is the responsible - or irresponsible - party." -30-