[Winona Online Democracy] Here's two articles on the property tax refunds and refund programs. I have always believed that property tax is too unfair as a way to fund most government services in that it is not based on ability to pay as much as the income tax. I also believe that the Legislature and the Governor need to take responsibility for the costs they shift to local governments at schools, cities and counties. But, those are long term, statewide issues. Right now I want to help find ways to get the word out about the two Minnesota property tax refund programs - "circuit breaker" and "targeted" -- to our local citizens. I will also try to find ways to volunteer personally to help people apply for these. After the Holidays I will send out another request to WOD for ideas about how our community and we as individuals can help people get their property tax refunds. Please share what you know and ideas you have.
Craig Brooks "The moral test of government is how it treats those who are in the dawn of life, the children; those who are in the twilight of life, the aged; and those who are in the shadow of life; the sick, the needy, and the handicapped". Hubert H. Humphrey --------------------------------------------------------- startribune.com Editorial: Trace property tax jump to statehouse December 19, 2005 As state tax policy experts like to point out, residential property taxes in Minnesota will still be lower next year than those paid by homeowners in Wisconsin and many other states. But that assurance is cold comfort to Minnesotans jarred by projected 2006 tax increases that run well into double digits. The state's average property tax bill will be 10.2 percent bigger in 2006 than in 2005, the state Revenue Department says -- but that average hides huge variations. It isn't uncommon for homeowners to see bumps twice as large, especially in neighborhoods where valuations have been rising sharply or cities in which commercial real estate valuations have dropped. If the response at a Truth in Taxation hearing at Arlington High School in St. Paul last week is typical, the increases are not going down easily. About 250 people packed the school's auditorium; more than 50 lined up at microphones to speak to the assembled city, county and school officials who set next year's levies. Several retired homeowners suggested freezing taxes for those on fixed incomes. A St. Paul East Side resident asked how city officials expected her to pay a 23 percent tax increase when her family income might at best rise by only 2 percent. Every locale's tax story has its own twist. In St. Paul, if city leaders had opted for small levy increases during the past decade, instead of keeping the levy flat for 12 years and bumping it a projected 3 percent for 2006, next year's hit might not be as dramatic. Also, residential property values have been climbing fast in Ramsey County, with median values up 12 to 15 percent in one year. But every Minnesota property tax bill is also the result of six years of Republican-led efforts to push financial burdens from the state to local governments, and from the income tax, which is based on ability to pay, to the more regressive property tax. That shift is most evident in next year's school district levies, which will bounce 18.4 percent higher on average. That's because the 2005 Legislature told school boards that they could have more money -- provided they were willing to raise it themselves, with higher local levies. What's a sticker-shocked homeowner to do? We advise looking into two longstanding state property tax refund programs, described at www.startribune.com/723. The "regular" program, known informally as the "circuit breaker," provides relief to homeowners whose tax bills are disproportionately high compared with their incomes. With a maximum income threshold of $87,780, it has the potential to serve a sizable segment of the state's population. A companion program serves renters as well. The "special" program -- called "targeting" -- offers a partial refund to any homeowner whose tax bill jumps by more than 12 percent in a single year, provided the increase exceeds $100 and other qualifying rules are met. These proven programs send relief to homeowners who need it most. If legislators want to cool the political firestorm over property taxes that they helped ignite, they should make sure those programs are well publicized and fully funded next year. Copyright 2005 Star Tribune. All rights reserved --------------------------------------------------------------- startribune.com Bludgeoned by property taxes? Two programs offer aspirin Anthony Lonetree, Star Tribune December 19, 2005 For years, Linda Locascio has been the wishful property taxpayer, making her payments, filling out a state tax form, M1PR, and hoping that she'd qualify for a property tax refund. In St. Louis Park, however, where Locascio lived until 2003, market value and tax increases were not sufficiently staggering from year to year, and so, it was no-go for the refund. Oh, how that's changing. Locascio moved to Greenfield in western Hennepin County, where her property tax statement now warns of a $1,310, or 37 percent, increase. But the good news, oddly enough, is the size of the increase could place her among a growing number of Minnesotans who actually see some good in a bad situation. That's because the state offers two property tax refund programs for homeowners. One, the regular, or so-called circuit breaker refund, because it protects against property tax "overloads," is based on income. The other, the special refund, is based on the size of property tax increase, with 12 percent being the pivotal number. Locascio, a school social worker, expects to qualify for the special refund. >From 2003 to 2005, state refund checks issued jumped from $86.9 million to $147 million for the circuit breaker, and from $700,000 to $7.3 million for the special refund, according to the Department of Revenue. Of course, people must remember to apply for the refunds, and to that end, local officials, including those in the Belle Plaine School District, have worked this month to remind constituents of it as local taxes head into the double digits, percentage-wise. The latest statewide projection, released last week by the nonpartisan Minnesota House Research Department, shows homestead property taxes rising by as much as $307 million, or 11.6 percent, in 2006. Across the state, the increases look potentially harsh for average-valued homes in the large sections of northwest, northeast and south-central Minnesota. But a closer look at property characteristics in each area, as well as changes in city, county and school tax rates, works against suspicions that local spending is out of control -- or, at least, that any such activity is widespread. In northeast and northwest Minnesota, for example, even modest increases can seem more pronounced because of a unique feature in the property tax system involving homes valued at $76,000 to $100,000, said Steve Hinze, legislative analyst for the House Research Department. Generally speaking, it's the school levy that's driving the state's larger increases -- the product of negotiations this year at the Capitol. In south-central Minnesota, Waseca is cutting its proposed levy increase in half, said city Finance Director Julie Linnihan. The Waseca Area Senior Citizens Center, she added, has been working to educate citizens about the refunds. Refund basics Since the 1970s, DFLers and Republicans alike have turned to the circuit breaker refund as the program of choice in offering tax relief to constituents. Repeatedly, they've raised income limits and subsidy levels. The circuit breaker program focuses on property taxes as a percentage of income, and is open to homeowners with incomes of less than $85,210 and renters earning $45,970 or less. Refunds are provided on a sliding scale, through use of Minnesota tax form M1PR. For homeowners, the average estimated refund is $580, up to a maximum of $1,590. The special refund program is available to homeowners whose property taxes increased by at least 12 percent, and $100. Income is not a factor. Those who apply, again using form M1PR, receive a check equal to 60 percent of the increase above 12 percent, up to a $1,000 maximum. The average refund is about $60. James Zwilling, a revenue department spokesman, said homeowners could collect refunds from both programs in any given year. Also, because taxpayers often file for property tax refunds with their income tax returns, they could receive refund checks before they make the second half of their property tax payments in October, Zwilling said. Although she figures she'll finally qualify for a refund, Locascio is, of course, not happy about her overall tax bill, or the timing of the refund. "I need the money now," she said. As development comes to Greenfield, Locascio fears that infrastructure costs will continue to rise, and that after one refund, "my taxes will go up again," she said. Her solution? More after-hours work. That effort already is underway. Anthony Lonetree 612-673-4455 Copyright 2005 Star Tribune. All rights reserved _______________________________________________ This message was posted to Winona Online Democracy All messages must be signed by the senders actual name. 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