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The time for finger pointing is past - we need property tax reform now PDF Print E-mail

By Mike Downing
Mnsf tax committee

Transform 2010, a project of the Minnesota Department of Human Services, Department of Health and the Board on Aging, is a group that has prepared “A Blueprint for 2010,” aimed at preparing Minnesota for the “Age Wave” due to Baby Boomers turning 65 in 2010. One of Blueprint’s key elements is to keep seniors in their homes for as long as they wish to be there. The Senior Federation and most other senior organizations have the same objective. Sadly, however, the rapid increase in property taxes over the last five years makes this objective more and more difficult for seniors. The Senior Federation’s previous surveys have shown that our members are currently paying 5, 10, 15 and up to 20 percent of their income on property taxes. Additionally, property taxes are increasing three to 10 times the core inflation rate as measured by the Consumer Price Index (CPI).

Our state elected officials in St. Paul blame our county, city, township and school board elected officials. Our county, city, township and school board elected officials place blame on our elected officials in the Minnesota House and the Minnesota Senate.

When will Minnesota citizens have a true statesman come forward to resolve the conflict between our state and local elected officials? It is high time that our elected officials stopped finger-pointing and rolled up their sleeves to solve the problem of property taxes for seniors.

The Senior Federation was successful in the 2007 legislative session in getting the Minnesota House tax committee and property tax committee to use the term “ability to pay” in reference to property taxes. We will continue our work in order to place a limit on homestead property taxes for seniors equal to 5 percent of household income.

The Senior Federation will continue our research into what other states have done/are doing to control property taxes for seniors in order to have seniors remain in their homes for as long as possible.

For example, Massachusetts, formerly referred to as “Taxachusetts,” placed a maximum yearly increase of the assessed value of a homesteaded home equal to 2.5 percent in 1987. This system has worked to keep homeowners, specifically seniors, in their homes.

Florida implemented “Save Our Homes” in 1994 where the annual increase in property taxes is limited to the increase in the CPI up to a maximum of 3 percent.

New Jersey passed a new law in a 2007 that caps the annual increase in property taxes at 4 percent.

A variety of ways exist with the objective of keeping seniors in their homes. The Senior Federation tax committee would love to hear your thoughts on the additional approaches that our state elected officials should consider. Contact any of the members of the MnSF tax committee with your suggestions.

Hubert Humphrey once said that “the moral test of government is how that government treats those who are in the dawn of life, the children; those who are in the twilight of life, the elderly; and those who are in the shadows of life, the sick, the needy and the handicapped.” Hubert Humphrey would encourage our elected officials in the Minnesota House and the Minnesota Senate to help our seniors be able to live in their homes by mandating a property tax limit of 5 percent of household income for seniors.

The Blueprint for 2010 can be found at www.DHS.state.mn.US/2010.