Minnesota Renters Credit
This year’s Minnesota Renters credit provides a tax refund to about 275000 households. The maximum benefits are reaped by the Senior citizens and people with disabilities who make up to 29% recipients. The current budget for Minnesota Renters Credit is a boon to low income households and has granted a cut by 21%. The Senate and House Tax Committee did not make any changes in the omnibus tax bills. So the final draft of the omnibus tax bill(HF 3149) had no changes.
The non profit organizations were quick to react to this. They drafted a letter to the governor concerning their views. They have specified these cuts will harm the people across the state including seniors and persons with disabilities and also other low income groups. But the governor backs up the deal specifying that the property taxes were decreased in 2001 for most owners. Renters did not reap any benefits out of this.
Rental property taxes remain one of the most regressive taxes in Minnesota. When the state is facing an economic downturn, the lower income group could not afford to pay the taxes. Hence about 100 organizations signed a letter and had sent it to the governor. Their concerns must be heard with great care by the administrators.