As you may know, Minnesota has about $900 million in a projected budget surplus this year. At the Chamber, we believe that both political parties have good ideas for tax cuts and investments that generate positive returns.
During this legislative session, our top priority is business property tax relief. Regardless of which statistics you trust, you'll find that Minnesota has one of the highest tax burdens in the U.S.
Because property taxes are usually lumped into a mortgage or lease payment, it's easy to overlook the details. Here's how it works:
If you're a private citizen who owns property, your tax bill generally includes fees to support your city and county governments as well as your school district.
If you're a business that owns or leases property, you pay all of those fees plus about one-third more in extra state taxes. The grand total-about $860 million annually-goes to the state's general fund and automatically increases every year.
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So, why should you care?
Ever dream about starting a business someday? These taxes are a significant barrier to entering the marketplace and achieving those dreams. They represent a fixed cost of doing business that isn't even tied to how much money you make.
For those who take the risk and start a business, every dollar paid in property taxes is one less dollar to increase employee wages and benefits. It's one less dollar to support a charity, school, or fundraiser. And it's one less dollar to actually grow the business.
And if a business owner isn't able to absorb the extra burden, these taxes must be passed along in the form of higher prices that we all pay for products and services.
That's why we believe that a business property tax cut is a tax cut for all of us.
Matt Kilian
President, Brainerd Lakes Chamber of Commerce
