“No-new-tax” Property Tax Increase

All other factors being held equal, property taxes will increase by 3.4 percent by eliminating Minnesota’s Homestead Credit—a policy conservatives successfully pushed during the 2011 special legislative session. The worst hit properties will be in greater Minnesota. Particularly hard hit will be farmers. These findings are based upon a recent analysis conducted by the non-partisan House Research Department. This analysis is based on 2011 data and assumes no increase or decrease in local government levies. Because local levies are held constant, local spending decisions cannot be blamed for the resulting property tax increases. Rather, the increases are entirely due to…