MN House Moving to Phase out State General Tax

In 2001, as part of the Jesse Ventura tax overhaul, the Minnesota legislature created the State Business Property Tax which applies to commercial industrial property and, inexplicably, cabin properties. Originally, a portion of the tax was intended to go to local school districts, but was redirected to the State General Fund the year following enactment.

This new tax includes an automatic inflator and has increased since then to almost $1 billion a year.  

  • Cabins are not income producing property, and MLR has long argued against the appropriateness of this tax.
  • MLR does not believe that the State should be in the business of property tax, particularly on businesses.
  • Property taxes are local taxes, and the State General Tax does nothing to support local communities.

This session a number of bills in the House have emerged that would either slowly phase out the State General Tax, remove cabin properties from the tax, or eliminate the inflator on the tax.

  • HF 664 phases out the State General Tax on seasonal property over a period of five years.
  • HF 665 phases out the State General Tax over a period of five years.
  • And two other bills, still unnumbered, would eliminate the automatic inflator and phase out the State General Tax respectively.

It is clear that the Legislature will take action to change the State General Tax this session. It is time to write your legislators about the need to end this onerous tax.
For those of you navigating the process of appealing your property tax bill, or just want to understand the process better HERE IS A HANDY GUIDE.

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