He said DFL-leaning organizations have tried to label the Republican property tax solution passed in the last biennium as “shifts and gimmicks,” but they ignore that their own solution runs on its own gimmicks.
Beth Kadoun, director of Tax and Fiscal Policy with the Minnesota Chamber of Commerce, said her organization is very skeptical about the numbers presented by Minnesota 2020.
She said the analysis is based off the useful House Research numbers, but those numbers are based on the best guesses by House Research. She said the data do not have concrete numbers from Minnesota cities yet and factor in presumptions that could change from city to city based on the local need. She gave the example of the House Research number calculating property tax reductions based on a flat 50 percent of the new LGA funding going directly to property tax reduction.
She also said the Minnesota Chamber is concerned that the LGA increase was funded by several tax increases that were passed this year. She said the new taxes hamper Minnesota's competitiveness with businesses. She said the Minnesota Chamber prefers direct property tax reliefs, such as the homestead credits.
For the 2014 Local Government Aid allocations, Mankato's funding increased by over $589,000, North Mankato's funding inceased by over $200,000 and St. Peter's funding increased by over $292,000.