Ventura's plan would reduce property taxes by cutting the average homeowner's tax bill by 18.5%, apartment owners' taxes by an average of 21%, businesses' taxes by 10%, farm taxes by 20% and cabin taxes by 12%.
Ventura and Republican leaders were more enthusiastic about the proposal than Democratic leaders, who say they felt pressured to take the deal rather than risk a potential government shutdown due to a lack of abudget deal.
The Minnesota Chamber of Commerce endorsed the tax plan as a wise use of excess tax revenues, offeringsignificant property tax reform, simplification and accountability as well as delivering much neededbusiness property tax relief to improve Minnesota's competitiveness.
"The Minnesota Chamber appreciates the efforts of the governor and the Legislature to make good on theircommitment to move Minnesota out of the top 10 states in business property tax burden," says David Olson, president of the Minnesota Chamber of Commerce. "It appears that this tax agreement not only delivers businesses and homeowners immediate relief, it should also make our property tax system easier to understand and more accountable than any time in recent history."
A component of the property tax reform plan will be a statewide property tax levied on businesses andcabins. Tax conference committee members will address details on the statewide tax next week when thecommittee finishes negotiations on the final bill. The Ventura administration and key legislative leadershave assured the business community that even with the statewide tax, businesses will be out of the top 10 in property tax burden, according to chamber officials.
For the last several years, commercial/industrial property tax reform has been the Minnesota Chamber'stop priority. Ventura says his package eliminates the state-mandated general education property tax levy,and other property tax levies that fund statewide or regional, rather than local needs, reforms the property tax classification system, and makes the school funding system more uniform across school districts.
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