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Third of homeowners would get break under DFL plan

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ST. PAUL - Taxes would fall for a third of Minnesota homeowners in a House Democratic-Farmer-Labor Party property tax proposal.

House researcher Nina Manzi told the House Taxes Committee Monday that about 500,000 Minnesotans may be affected.

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The property tax proposal - the highlight of an overall tax bill unveiled Monday - eliminates income tax deductions for homeowners' property tax payments. Rep. Paul Marquart, DFL-Dilworth, said anyone who pays more than 2 percent of their income in property taxes would benefit.

Marquart, House property tax chairman, said the bill does not match up with a Senate proposal that puts its emphasis on increasing state aid paid to local governments. The House bill would send $207 million directly to homeowners, although some Minnesotans would pay higher property taxes to fund cuts the others receive.

Marquart said he has not talked to Gov. Tim Pawlenty about the property tax plan, but it was crafted to meet the governor's demand that taxes not be raised.

During a Monday hearing, Rep. Morrie Lanning, R-Moorhead, said the bill would force cabin owners to pay more taxes than they do now.

Minnesotans can determine about how they would be affected by the bill at www.house.leg.state.mn.us/comm/committee.asp?comm=3100.

The proposal could be voted by the full House Monday.

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