Brooklyn Center & Brooklyn Park, Homeowners Likely Winners Under New LGA Formula

The cities would receive a combined $1.4 million in additional LGA; the bill also includes significant reductions for homeowners and renters

SAINT PAUL, MN – New data from the Minnesota House Research Department shows that Brooklyn Park and Brooklyn Center will benefit from the property tax reduction legislation proposed by the MN House DFL. Beginning in 2014, the City of Brooklyn Center would see an increase of roughly $700,000 in local government aid. The City of Brooklyn Park, which currently receives no aid, would begin getting about $760,000 a year.

“A decade of state budget cuts has really hurt Minnesota’s cities and homeowners. New aid to Brooklyn Park and Brooklyn Center will help reduce property tax burdens and protect important city services,” said Rep. Michael Nelson (DFL – Brooklyn Park). “This legislation also includes direct aid property tax reductions to help Minnesota homeowners and renters as well.”

Beginning next year 75 percent of Minnesota homeowners also would see an increase in their property tax refund – the typical homeowners would receive an additional $212. Minnesotan’s who rent also would see new aid. In total, 340,000 renters would receive property tax relief through the Renters’ Credit with typical refund increasing by about $170.
 
More on Homestead Credit:
The proposal provides direct property tax relief to middle class Minnesotans by increasing the Homestead Credit Refund by $157 million. In addition, Minnesotans will be notified if they are eligible for a refund to ensure that more homeowners are taking advantage of the program.

More on Renter’s Credit:
The proposal includes $15.5 million for the Renter’s Credit. The Renter’s Credit is a refund that provides direct property tax relief to low- and middle-income renters. The proposal enhances the renter’s credit by increasing the maximum refund allowed for renters. Renters with household incomes less than $17,930 will see their maximum refund increase between $130 and $380. All other renters will see an increase between $10 and $80.  

More on Local Government Aid increases:
The property tax relief proposal includes $60 million for Local Government Aid. This represents the most significant increase in Local Government Aid in over decade. The new formula was developed by a broad coalition of cities representing urban, suburban, and rural interests. This new formula is more stable, easier to understand, and predictable than the previous one.

Source: Minnesota House of Representatives Research Department.

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