Rep. David Dill
State Representative David Dill (DFLCrane Lake) is co-authoring legislation to restore the Market Value Homestead Credit for Minnesota homeowners and business owners. This legislation is a top priority and will be officially introduced and given a bill number on the first day of session.
Dill vigorously opposed the elimination of the Homestead Credit because of the negative impact it would have on Northeast Minnesota property taxpayers. Unfortunately, the GOP majority in both the House and Senate insisted on its removal, and reluctantly, Gov. Dayton signed the elimination as part of the final negotiation to end the state shutdown. “Unfortunately, 95 percent of homeowners were stunned when they opened their Truth-in- Taxation statement and saw that their Homestead Credit, which has been relied-upon direct property tax relief for over four decades, is now completely gone,” stated Dill.
The bill being coauthored by Dill will reverse this action and give Minnesotans their Homestead Credit back. “The Homestead Credit reduces property taxes by as much as $304 a year for homeowners. The credit was eliminated and local property taxes increased significantly a result. The eliminated credit really was backdoor tax increases on the folks who can least afford it,” said Dill.
The Homestead Credit was replaced by a complicated program called the Homestead Market Value Exclusion. The exclusion program allows some homeowners to exclude some of the value of their home from tax assessments, but it then forces other property taxpayers to make up the difference. The exclusion shifts property taxes and disproportionately hurts rural small business already struggling with high property taxes.
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