By Don Davis
Minnesota House Democrats want voters to know that most rural residents should pay lower property taxes on their homes after actions they took.
“We think it is good news for Minnesotans and Minnesota homeowners,” House Speaker Paul Thissen, D-Minneapolis, told a handful of greater Minnesota reporters on a Friday conference call.
After property taxes rose 84 percent in the past dozen years, he said, they now will drop 4.9 percent after actions during last year’s legislative session.
While numbers Thissen and colleagues released are overall statewide figures, Rep. Paul Marquart, D-Dilworth, said the overwhelming majority of rural Minnesotans’ home property taxes will fall.
That is not the case, however, with taxes on farm land.
House Property Tax Chairman Jim Davnie, D-Minneapolis, said he hopes to find a way to lower farmland tax in a second tax-cut bill the House expects to debate this legislative session. Also possible are bigger homeowner and renter refunds and fixing a formula problem that cost 11 counties state aid.
But Senate Tax Chairman Rod Skoe, D-Clearbrook, says there will be no second tax-cut bill. And $500 million in tax cuts the House approved Thursday cut deeper than the Senate will, he said.
Marquart said that rural Minnesota home taxes already are down $30 million, and any homeowner who otherwise would pay more could get a big enough refund to counter higher taxes.
It is obvious around the Capitol that House Democrats are worried about losing rural Minnesota seats in the November election.
Minutes after the House approved its $500 million tax cut, most rural Democratic members sent news releases out via email.
“These tax cuts will go directly to middle class families in Minnesota, including the business owners of main street store fronts and the folks who support them” Rep. Ben Lien, D-Moorhead, said, comments typical of rural Democrats.
“Our great state is on the right track and the way to continue that progress is to grow our economy from the middle out, starting with these middle-class tax cuts,” Rep. John Ward, D-Baxter, said in in his news release.
“The way to continue building on our progress is to expand middle-class economic opportunity,” Rep. Mary Sawatzky, D-Willmar, said.
Republicans were not buying it.
Senate Minority Leader David Hann of Eden Prairie echoed other Republicans’ views by saying that Democrats cannot declare victory in the last half of the Legislature’s two-year session. Last year’s $2.3 billion tax increase is cannot be counterbalanced by a $500 million cut, he said.
Democrats lose 2 votes
A tax-cut bill the House passed in record time, less than two weeks into this legislative session, gained support of all but two representatives.
Democratic Reps. Jason Metsa of Virginia and Ryan Winkler of Golden Valley put the only two red votes on the tally board, later saying the money used to finance the $500 million in tax cuts could have been better spent.
Metsa said he supports the part of the bill that matched Minnesota tax law to federal law, which not only would save money but also make tax returns simpler.
“I think the remaining dollars would’ve been better spent on additional property tax relief, support for our nursing homes and further restoring Minnesota’s commitment to our counties, cities and townships after a decade of funding cuts,” Metsa said.
Winkler said he voted against the tax cut because they were too large.
“I support some of the individual provisions, but think that we should not pass cuts within a year of enacting the first truly balanced budget in a decade,” Winkler said. “In addition, a surplus is a good thing to re-invest in Minnesota’s economy through early childhood education, lower higher education costs, higher pay for care providers, improved transportation, etc.”
More propane transportation
Upper Midwest U.S. senators are pushing legislation to make it easier to transport propane to people affected by shortage of the fuel and its high price.
U.S. Sens. Amy Klobuchar of Minnesota, Al Franken of Minnesota, John Hoeven of North Dakota and Tammy Baldwin of Wisconsin introduced a bill to extend the number of hours drivers can transport propane.
Minnesota U.S. Reps. John Kline, Erik Paulsen, Tim Walz and Rick Nolan have a similar bill.
The longer hours would be allowed through May 31.
“With winter weather still bearing down on Minnesota, we need to do everything we can to deliver relief to families who are feeling the impacts of the propane shortage,” Klobuchar said. “By letting truck drivers work longer hours for the rest of the winter, this legislation will help speed propane supplies to those who need it most and deliver some much-needed certainty to families across Minnesota.
Cash for projects?
Before Gov. Mark Dayton announced changes he wants to make in the state budget on Thursday, it appeared likely that money from a $1.2 billion surplus would be used to fund some public works projects.
However, Dayton tried to put an end to that as he opted against paying cash. He said borrowing money by selling bonds is a better way to fund public works projects such as fixing buildings and constructing new ones.
He included enough money in his revised budget to pay interest on bonds so the Legislature could approve a nearly $1 billion public works bill instead of $840 million legislative leaders want. Legislative leaders are open to paying cash for some projects.
Mute those reporters
Gov. Mark Dayton has been homebound after hip surgery, forcing him to dump news conferences in favor of conference calls with reporters.
When he announced his supplemental budget Thursday, the conference operator explained that reporters’ telephones were muted while Dayton talked.
“I kind of like these calls when all the reporters are on mute,” Dayton cracked.