On Wednesday, the Senate’s Subcommittee on Property Taxes passed Senator Bill Weber’s (R-Luverne) budget bill to provide Minnesotans and businesses with meaningful property tax relief and reform without increasing taxes. The comprehensive legislation focuses on several key areas, prioritizing a reduction on property taxes for job creators, relief for in-home childcare providers, and support for affordable housing by reducing rates on low-income rental property. 

“The goal of this legislation is to lower property taxes on Minnesotans and provide relief that encourages growth in our economy and makes Minnesota more affordable,” Senator Weber, Chair of the Subcommittee on Property Taxes, said. “Through targeted relief, we’re helping small businesses expand and survive COVID, increasing childcare options for Minnesotans, and working to increase access to affordable and workforce housing.”

To help Minnesota’s small businesses, the legislation increases the statewide property tax exclusion from $100,000 to $150,000. The provision reduces the burden of the harmful double property tax Minnesota job creators already face, providing relief to our businesses that have already been struggling because of the pandemic.

To deal with the childcare shortage in Minnesota and incentivize more people to join the profession, the legislation establishes a new in-home childcare provider property tax credit. The credit for providers will be equal to 50% of the net tax amount owed on the property for the current tax year.  

The legislation supports affordable housing by reducing the 4d property tax class rate on low-income rental property. This provision will set the class rate at 0.25%, further incentivizing affordable while also encouraging new affordable housing development.  

More provisions on the bill can be found here.