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Capitol View®
Tim Pugmire

Dueling property tax reports spark partisan squabble

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Minnesota House researchers heave released two new reports on local property taxes today that show movement in different directions.

The reports triggered some election year bickering between Democrats and Republicans over the conclusions to be drawn from the research. All 134 House seats are up for grabs this fall.

One simulation report from the non-partisan House Research Department compares property taxes payable in 2014 to property taxes payable in 2013. It accounts for the recently-enacted tax breaks for farmers, homeowners and renters. The result: Statewide, property taxes are forecast to decrease by $49 million, or 0.6 percent, according to House Research.

Democrats embraced the report as evidence that their policies are working.

“We’d heard from Minnesotans about their concerns about the steady increase of property taxes over the past decade, and we really were intent on doing something about it,” said House Majority Leader Erin Murphy, DFL-St. Paul.

The other simulation report from House Research is a projection of property taxes payable in 2015 compared to property taxes payable in 2014. It’s an estimation based on property value trends and of yet-to-be-made local levy decisions by cities, counties and school districts. The result: Statewide property taxes are projected to increase by $238 million, or 2.8 percent.

In addition, the report points out that $99 million in property taxes is the result of new construction.

Still, Republicans pointed to the second report as evidence that DFL policies are not working. Rep. Paul Torkelson, R-Hanska, said Minnesotans can expect to pay more, despite the promises of Democrats. Torkelson said property taxes will be a big campaign issue.

“I think it’s going to be an especially big issue out here in Greater Minnesota,” Torkelson said. “These projected increases fall most heavily on Greater Minnesota and also most heavily on ag land.”

Both House Research reports caution that simulations are only “approximations of reality.”  The accuracy of next-year predictions in particular can vary widely, according to Steve Hinze, the legislative analyst who wrote both reports.

‘When we’ve done these in the past, we certainly can be pretty far off,” Hinze said.