Minnesota lawmakers propose $100M property tax refund plan for nearly 600,000 homeowners
A Minnesota state senator has proposed a $100 million property tax relief plan that would deliver refunds to nearly 600,000 homeowners across the state.
State Sen. Grant Hauschild, DFL-Hermantown, presented the legislation to the Senate Taxes Committee as property tax bills jumped statewide this year. According to the Minnesota Department of Revenue, the bill would provide an average refund increase of $171 to homeowners on top of any other refunds they receive from the homestead credit.
"Minnesotans across the state are worried about the rising costs of essential needs in their lives, and they're looking for help," Hauschild said. "This bill delivers targeted relief for rising property taxes by providing a significant property tax refund increase for hundreds of thousands of Minnesotans."
The state estimates property taxes have risen nearly 7% and are expected to continue climbing.
The proposal comes as cities and counties face budget pressures tied to changes in federal policy.
The League of Minnesota Cities, the Association of Minnesota Counties, and the Minnesota Inter-County Association said in a letter that a federal budget bill created at least $150 million per year in cost shifts to counties at the administrative level. The bill also reduced federal funds for SNAP and Medicaid benefits and imposed eligibility changes that require unfunded mandates on county administrative work.
The federal budget bill is expected to result in almost $1 trillion in cost shifts and budget cuts for cities, counties, states, school districts, and other municipalities over the next 10 years, according to the groups.
"While we can't undo the cruel cuts and policies of the federal government, we can step up with immediate relief that will help Minnesotans who have been hit hard," Hauschild said. "We are laser-focused on the ways we can give working Minnesotans help where they need it and providing homeowners with property tax relief is one key part of that."
Lawmakers from both parties have acknowledged the sharp increase in property taxes this year.
Republicans proposed a $4 billion one-time refund plan for property taxpayers that would provide up to $2,500 per household, depending on income. Democrats criticized the Republican proposal, saying it would primarily benefit wealthy Minnesotans and do nothing for renters.
Gov. Tim Walz's budget does not directly address property tax relief but focuses on affordability measures instead.
The legislative session ends May 18. A compromise in the evenly divided legislature will be difficult to reach, and it is possible neither proposal will pass.
