$292 million in business property tax relief leads legislative successes
In many respects, the statewide property tax is among the most invisible of taxes paid by Minnesota businesses.
It’s automatically assessed by the Legislature with no hearing of any sort. It’s paid by all businesses whether they own or lease property. It represents about 30 percent of a company’s total property tax bill.
Relief is coming in 2018, thanks to legislation passed at the 2017 Legislature. The measure leads the impressive lineup of Minnesota Chamber successes this year.
Key provisions of the 2017 legislation:
- The tax no longer will automatically increase every year by an inflator index. The Legislature will have to vote if it wants to raise it.
- $55 million reduction in the state levy for taxes payable 2018.
- The first $100,000 of a property’s market value will be exempt from the statewide levy. The impact will be especially significant for properties in Greater Minnesota.
“This is one of the most onerous taxes facing Minnesota businesses,” says Beth Kadoun, vice president of tax and fiscal policy at the Minnesota Chamber. "Property taxes for Minnesota businesses are second highest for rural properties and seventh highest for metro properties. Reducing the statewide business property tax will reduce a fixed cost of doing business – helping all businesses in the state without shifting taxes to others or negatively impacting local communities.”
For more information, contact Beth at 651.292.4678 or email@example.com.