Minnesota Chamber fights for property tax reform
Published 12:00 am Tuesday, January 30, 2001
By KEVIRA MERTHA Austin Daily Herald.
Tuesday, January 30, 2001
By KEVIRA MERTHA
Austin Daily Herald
Given Gov. Jesse Ventura’s visit to Austin on Thursday, a property tax forum held Friday by the Minnesota Chamber of Commerce at the Austin Holiday Inn was more than appropriate.
Its purpose was to stress the necessity of lobbying for reform now.
"The urgency now is the governor put into play a substantial property tax reform plan," Senior Vice President William Blazar of the Minnesota Chamber of Commerce said. The forum was presented to inform Austin area business owners of ways to voice their property tax reform concerns, Blazar said.
While the state has made some strides in reducing the property tax burden on residents and businesses, rural communities still are ranked third in the nation for commercial property taxes and eighth in the nation for industrial property taxes.
"Commercial and industrial property in Minnesota comprises 15 percent of the state’s total taxable market value, but business shoulders 30 percent of the property tax load," according to a statement printed in literature offered to business owners during the forum. It indicates inequity the state Chamber sees in the current state tax system.
Presently businesses, apartment owners and homesteaders carry different tax burdens. Ventura has proposed leveling the playing field, so to speak, by reducing taxes on each type of property by a different percentage.
Blazar is pleased with the governor’s proposal.
"Everyone will receive relief because the state will take over a large portion of the education levy," Blazar said.
Blazar admits Ventura’s tax plan is not perfect, but he said the state Chamber is analyzing the total budget to see whether any other areas demand formulation of a reform strategy.
The hardest part of the governor’s tax plan, Blazar said, is the extension of the sales tax to services. He expects the end of the 2001 session to show modest, scaled-back income tax relief and up-front property tax relief. He is not certain, however, if the sales tax extension will pass.
But for now he plans to focus on reforming state laws for property owners throughout the state, including in Austin. He hopes that local business owners who attended the forum on Friday will join him in his fight.
"Right now we have the legislature’s attention," Blazar said. "It is a great platform in which to work."