Everything politics, economy, taxes

Minnesota Republicans have today proposed a property tax relief program costing $80 million for next session.

That's to mitigate what are expected to be some pretty hefty increases in business and residential property taxes coming in notices the next few weeks.

The reduction and removal of the market value homestead credit helped plug a $1 billion plus budget hole last year and was part of the agreement between Democratic Gov. Mark Dayton and the Republicans who controlled the Legislature.

Unlike years past, where property tax increases could be passed off on the local governments as a tangential reaction to the state, this year, the state Legislature actually did increase the rate at which property is taxed. No argument.

So, that message is getting through to lots of taxpayers. I'd be a little worried if I were an outstate Republican in a district that has in the past been represented by the other party.

The announcement of the property tax relief program today tells me two things: one, Republicans really believe they will be blamed for property tax increases this year, and two, they're already hearing about it from constituencies, like business, that know the higher property taxes are coming.

Republicans also will be faced with their own suburban-rural split in support. Typically, small town and outstate Minnesota have supported Republicans, but what some of those outstate legislators are now realizing their suburban brethren and leaders may not be in sync with constituencies of outstate legislators when it comes to property tax and local government aid.

Many can still not live down how they voted against an LGA compromise years ago, that would have been fair to outstate Minnesota. They were convinced by then "suburban brethren" led by a guy named Tim Pawlenty to vote against the compromise plan by Dan Dorman, a Republican from Albert Lea.

Actually, of all the taxes Minnesotans face, we rank lowest in property taxes, something like 37 to 47 if I remember right. So, logically, property taxes are the place where we could raise money and still be "competitive" with other states.

But property taxes and the "most public" of all taxes. Everyone can see what you pay. So they can really be a political hammer when used against those who raise them.

And Republican legislators and Dayton will not be able to escape the blame. Most legislative Democrats, however, can say they voted against the final bill, which is mostly true.