Richfield Will Benefit from New Property Tax Legislation, Says Slocum

Editor's Note: The following is a release from the office Minnesota House Rep. Linda Slocum, who represents Richfield.

New data from the Minnesota House Research Department shows that Richfield and Bloomington will benefit from the property tax reduction legislation proposed by the MN House DFL. Beginning in 2014, the City of Richfield would see an increase of roughly $540,000 in local government aid. Bloomington, which currently receives no aid, would get about $300,000 a year.

“During the past decade, increasing property taxes have become a real hardship for many of my constituents,” said Rep. Linda Slocum (DFL – Richfield). “Additional aid to cities and direct support to homeowners and renters will help reduce property taxes, while protecting essential public services like fire and police protection.”

Beginning next year 75 percent of Minnesota homeowners also would see an increase in their property tax refund – the typical homeowners would receive an additional $212. Minnesotan’s who rent also would see new aid. In total, 340,000 renters would receive property tax relief through the Renters’ Credit with typical refund increasing by about $170.

More on Homestead Credit Refund:

The proposal provides direct property tax relief to middle class Minnesotans by increasing the Homestead Credit Refund by $157 million. In addition, Minnesotans will be notified if they are eligible for a refund to ensure that more homeowners are taking advantage of the program.

More on Renter’s Credit:

The proposal includes $15.5 million for the Renter’s Credit. The Renter’s Credit is a refund that provides direct property tax relief to low- and middle-income renters. The proposal enhances the renter’s credit by increasing the maximum refund allowed for renters. Renters with household incomes less than $17,930 will see their maximum refund increase between $130 and $380. All other renters will see an increase between $10 and $80. 

More on Local Government Aid increases:

The property tax relief proposal includes $60 million for Local Government Aid. This represents the most significant increase in Local Government Aid in over decade. The new formula was developed by a broad coalition of cities representing urban, suburban, and rural interests. This new formula is more stable, easier to understand, and predictable than the previous one.

Current law 2014 LGA

Aid Increase at $60 million

Aid increase per capita at $60 million

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