Are you a renter?
You might want to take a look at Governor Pawlenty’s proposed tax bill. One proposed cut is to the Renter’s Credit, which provides a tax refund to nearly 275,000 Minnesotans who rent. According to the nonpartisan Research Department of the Minnesota House of Representatives, the Renter’s credit was designed to provide “tax relief to renters whose rent and “implicit property taxes” are high relative to their incomes.”
The Minnesota Budget Project (MBP), an initiative of the Minnesota Council of Nonprofits, is deeply concerned about the cuts. The MBP provides independent research, analysis and outreach on state and federal budget and tax policy issues, emphasizing their impact on low- and moderate-income persons. According to a recent blog entry, Minnesota Budget Bites, the 27% proposed cut in Renter’s Credit “raises some serious concerns about its impact on struggling Minnesotans and the fairness of our tax system.” According to their research, seniors and people with disabilities make up 28% of all Renter’s Credit recipients. (You can visit the Minnesota Department of Revenue website for more information on eligibility.)
The Minnesota House of Representatives has set up a property tax comment line for taxpayers to have a voice in finding the solutions to rising property taxes. Should relief come on the backs of those with the lowest incomes? Are rental property taxes, as the Minnesota Budget Project argues, one of the most regressive parts of the Minnesota tax code?
(Posted by Taina, originally at the Course Weblog of PA5113)