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<br />BILL SALISBURY
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<br />J;~.:r";:'~ The prope~y tax ~ate on big businesses
<br />'.;,w~,about 41,2 .times higher than it is on a
<br />:,(~ ,mOdestly priced home, and the rate for
<br />/~;L~partments is abo';lt 31,2 times higher
<br />, ri tha~ for homes. Minnesota's taxes on
<br />~;ll1usmesses and apartments are among .'
<br />,.\, the highest in the nation, while its taxes .
<br />~;~;on lower-priced homes are among the
<br />:'",)owest. .'
<br />"'./; ," That discourages businesses from 10-
<br />~ ~' cating or expanding in Minnesota and
<br />, ~~'::x>.ushes u~ rents. It also has the effect of
<br />;.~~...encouragmg homeowners to demand
<br />~~rparks, schools, libraries and other local
<br />, ;~;~: ~overnment services without having to
<br />, :i~: I?ay the full cost because businesses and
<br />: ,"L apartments foot most of the bill. .
<br />i .-tcou Most reasonable people would agree
<br />: J Ei(t~ ~~e .proP7rty ~x system is un_~ait. . " .
<br />; ,~{,;::> ,The elItes want to double most home-
<br />. '. \ t owners' property tax bills:'Many endorse
<br />; ~,ll! raising ~he tax rate on homes valued at
<br />, ,.)fn.$72,OOO or less from 1 percent to 2 per-
<br />~ ,~'i~~~ent, while lowering the rates for busi-
<br />, , ',.:;;:l!esses and apartments. . . '.
<br />.'i~~~.,-!. ~he Minnesota Legislature hasn't. '.
<br />:.~ ~:r1~ Dought int? that idea yet, but it has s.tart-
<br /><.. j;:', ed ratchetmg do.wn tax rates for bUSI- .'
<br />1:'~~\: nesses a,n? apartments. The top'rate for'
<br />;777 large' buslDesses; for example, has,.
<br />;. ?(; dropped from 4.95 percent in 1991 t04.6':
<br />Ii ;.;:~ ~percent for 1994::,~/,' ',:' ,;
<br />l;'~fi The lower tax rate; combined with a',
<br />j : ):~;K ~ec~ine in. the ma~ket values of St. Paul
<br />i;::J;\ busmesses, has shifted more of the prop.,
<br />: '....'..~,:. erty tax burden onto homes in the city. ..,'
<br />f ;k~' Thatcontrlbuted to the whopping tax in~.'
<br />'" L.creases proposed for homeowners. . .
<br />" ?", . The elites would argue that's a trend in
<br />'h the right direction. Homeowners plainly,
<br /><i::" don't like it.d~-:{';' \. .'
<br />, '.' ',: j Theeuteswould cushion the blow to
<br />, '..t: ihomeoWners by'providing property tax
<br />. ';. ~.'.,! relief based on income - a program
<br />. <.01. :~'I known a. s the u. c.irCUit breaker" - so no
<br />') ~{ o~e's tax'!ould exceed 2 or 3 p~rcent of ,
<br />"; .4<';'.' hIS or her lDcome. But that cushIOn', . -
<br />",'~~wouldn't prevent most middle-class" .
<br />. n~!;,ho~eownersfrorn.ge.tting hit with hefty,
<br />. .'fcj tax mcreases.";;\',it:,",<,':' :..: '
<br />:, ;;t\{;.. In 1991, GOY; A.rneCarlson proposed a',
<br />;,/l{~version of the elite's property tax reform
<br />! ,E~;: plan. When homeOwners found out that it
<br />I, ' , ;~~; would double their taxes, they were out-
<br />!!;i: raged. Carlson never has fully recovered
<br />I;, .'Jr): from the political beating he took on that
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<br />I i r~I;:~~~r::{~~i;:f~~:e~;:::~l~e-
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<br />I f.{{ clearly like the policies that have kept
<br />~:. t. their taxes artificially low, and'they
<br />don't take kindly to politicians who jack
<br />", up their property taxes. . .'
<br />.>('{' Thee~tes' pl~n ~ay so.u~d gOO? ~n the-
<br />:1:' lOry, but m realIty It'S political SUICide.
<br />~.~~.~.--,):-~"-~ ,.... . .
<br />. ::~::'{'1S;/:~~i;~'~ -;-
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<br />--14t1t1anb~
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<br />SAINT PAUL PIONEER PRESS
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<br />t n,,'-,
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<br />Jrax inequity cure
<br />;::::E.is politica~Xsuicide "
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<br />. ",:..~H ere's' ~ great
<br />'.J '~'fdea. Let's raise' ,
<br />. -;''''liomeowners' prop~,
<br />"~~::erty taxes through
<br />....the roof.
<br />,.:,;:-:: After all, they
<br />.~" aren't paying their
<br />-."',"'fair share now. If
<br />~':';::they paid more, . . STAFF COLUMNIST
<br />'':.''--they would realize
<br />the real costs of the
<br />local government
<br />--services they de-
<br />I """,mand.: }
<br /><"'". That, in a nutshell, is the conventional
<br />:;;';;'wisdom among the elites who want to re-
<br />::::'::lorm Minnesota's Byzantine property tax
<br />,'...."system. , . \
<br />: ::': T~e elites got a strong dose of political :
<br />. . ,.@..realIty therapy last week from St. Paul'
<br />:::;homeowners. They are mad as hell about
<br />:::::p.roposals to increase their 1994 property
<br />. ;.",..taxes 17.5 percent on an average home'
<br />~>..and up to 25 to 30 percent. .
<br />~~:;;, If taxpayers are telling local elected .
<br />~::;"'bfficials they won't stand for those kinds
<br />: :::gf increases, what do you think they
<br />,''lWwouldsay to someone who proposed 100
<br />:'::percent tax increases? '.'
<br />':~':,;,: But that is precisely what the elites
<br />: ~",,;'want.>, ; .
<br />;=~ A whole bunch of studies - by former
<br />::...,81. Paul Mayor George Latimer's state
<br />."U'tax study commission, the Citizens
<br />. Tl,J"eague, the Minnesota Taxpayers Associ-
<br />. ~; .,,~tion, the legislative auditor and the
<br />> :state Revenue Department, among others .
<br />'..~::,:: have found that property taxes on
<br />.j" Qusinesses and apartments in Minnesota
<br />.' are disproportionately high, while owners
<br />..-.{)f homes valued at $72,000 or less are
<br />-v,,-.._ .
<br />, ge~.mg too g~od, a deal. .
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