(April 20, 2001) Much of the tax cutting focus the past few years both at the state and federal level has been on income taxes. But Rep. Ron Erhardt (R-Edina) said it is time to shift some of that relief to property taxes.

HF1402, sponsored by Erhardt, would exempt residential homestead and non-homestead, agricultural homestead and non-homestead, apartment and seasonal recreational property from the state determined general education levy.

"Property values have been rising every year at a rate several times the rate of inflation," Erhardt said April 19 before the House Taxes Committee Property Tax Division. He added the bill would bring "equity in the school aid system" by providing that only homeowners and apartment residents in the school districts are paying for the costs of approving a special operating referendum.

The bill also would establish a flat 1 percent class rate for all residential homestead property and would reduce the class rate for all other classes of property.

Erhardt said in order to lessen the shifting that would be caused by the rate compression the bill provides for a new homestead credit program for residential homestead property and for the house, garage and one acre portion of agricultural homestead property.

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