By Don Heinzman

ECM Editorial Contributor 

Any property owner in Minnesota will tell you their property taxes have gone up over the past few years.  A recent study in Minnesota says property taxes across the state have risen 70 percent since 2002.

The study done by Minnesota 2020 concludes taxes are going up because of loss of state aid.  Property tax relief should be on the Minnesota Legislature’s agenda but don’t look for much relief.

What experts have known is the no-tax-increase at the state level along with less local government aid has forced local units of government to go to their only revenue source, the property tax.

Local tax statements bear out what the study by Minnesota 2020 found out.  They are going up and there is no end in sight.

Minnesota 2020 is a progressive think tank run by former DFL Representative Matt Entenza, who says the increase in property taxes cannot be explained by inflation, growing home values or local government spending.

To all this, a spokesman for Minnesota Gov. Tim Pawlenty said one way to stop local government spending is to cap it.  Republicans like to say it’s local units of government that need to clamp down on spending, even though they have less revenue.

In fact, Gov. Pawlenty, who in the polls comes out the good guy for controlling spending and taxes, favors capping the amount local units of government can tax property.

The 2020 study found that real per capita state aid to Minnesota governments has fallen by 23 percent.  Conversely, real per capita state government revenues, excluding what states spend for local government, increased by 6.6 percent.

Real per-pupil state aid the past six years has declined by 13 percent.  More than half of those school property tax increases have come through passage of local government referendums.

Don’t look for any property tax relief changes in this upcoming legislative session facing a $300 million shortfall, which may be even worse when the new financial forecast is issued a month from now.  Last session a strong property tax relief bill was vetoed.

Legislators are occupied with financing the I35-W bridge that collapsed and the need for more transportation funding.  This is an election year and there’s little chance the Legislature will increase any kind of taxes. Since the mid 1990s, local property tax levies for roads and bridges have doubled, making the property tax the biggest funder of transportation needs.

Moreover, while the DFL has majorities in both houses, Gov. Pawlenty rules because the House lacks the number of votes to override the Governor’s veto.  Republican leaders predict that block of votes to prevent an override will stick.

Republicans are confident that taxpayers will support the no-tax pledge, and put up with increases in property taxes which can be blamed on local officials.  They also are confident few people will complain to their local legislators, except for lobbyists.

There’s a good chance more DFL candidates will be elected to House seats this fall when all members are up for re-election.  Failure to do that will result in a tax system where property taxes will continue to increase and payers will continue to complain.

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