ST. PAUL -- Minnesota property taxes continued to rise above inflation levels last year, prompting Democratic lawmakers Thursday to seek property tax relief in the legislative session beginning Feb. 12.
But Republican Gov. Tim Pawlenty said a projected $400 million budget deficit means a property tax reduction bill is less likely this year.
"They should have took the bill when they had it because times have changed," he said. "We have other things we got to do now. We are in a budget deficit."
Property taxes are expected to rise 8.8 percent this year, a just-released nonpartisan legislative study shows. Democrats say that $596 million increase equals more than $1,100 more tax per minute.
Property taxes remain "the No. 1 issue of this session," Senate Tax Chairman Tom Bakk, DFL-Cook, said Thursday.
ADVERTISEMENT
In an announcement timed to force Pawlenty to respond during a meeting with reporters later Thursday, Bakk and other Democrats criticized him for forcing up school, city and county property taxes.
Pawlenty said local governments misled taxpayers when they raised property taxes in recent years. Cities, especially, blame those increases on 2003 Local Government Aid cuts made to help balance the state government.
"They are living off an argument that is 6 years old," Pawlenty said. "They made up for it a long time ago."
Bakk said he would like lawmakers to pass a $377 million property tax-relief bill, much like one Pawlenty vetoed last year. The governor vetoed the bill over some mostly technical changes, but at the time said he could support most of the actual tax changes.
Don Davis works for Forum Communications Co., which owns the News Tribune.
