By Pat Kessler

MINNEAPOLIS (WCCO) — Got your property tax bill yet?

Get ready for some sticker shock.

Many people will be surprised when they see just how much they’ll have to shell out.

Here’s why:

It used to be Minnesota homeowners could lower their property tax bills with something called the homestead credit.

Now it’s gone.

“I am often asked, does that automatically increase property taxes?,” said Rep. Greg Davids, R-Preston, the chairman of the House Taxes Committee. “And the answer is no. Could it? Yes, it could.”

That’s TRUE.

Ninety-five percent of Minnesota homeowners filed for the old homestead credit in past years, cutting their property tax bills by up to several hundred dollars.

It’s been replaced by the Market Value Exclusion.

That allows homeowners to exempt part of the value of their home from taxes. But it won’t necessarily lower your bill.


It all happened in the crisis atmosphere of last summer’s 21-day government shutdown.

A budget deal passed by Republicans, and signed into law by the Democratic Governor.

Signing the budget bills, which fixed the $5 billion budget shortfall, Minnesota Gov. Mark Dayton signaled his unhappiness.

“I’m not entirely happy with this budget that I have signed into law,” said Dayton, a first-term Democrat. “It’s not what I wanted, but it is the best option that is available.”


The state was supposed to fully reimburse cities for the homestead credit, but it rarely kept that promise. Cutting the $500 million homestead credit program was meant to eliminate the obligation, and balance the budget.

Now cities are turning to homeowners to make up for lost revenue.

Amid all the confusion about the new property tax system, homeowners are left holding the bill — literally.

Meanwhile, the outcry over property tax hikes grows, Minnesota Republican leaders said this week they will push for tax relief — next year.

Here are some of the sources we used for this Reality Check

Comments (25)
  1. Murph says:

    Gotcha,the Repugs strike again.NO NEW TAXES? It’s the same ponzi scheme it’s always been.If one don’t get you the other one will!Repugs NEVER own up to who is behind it!You dummies keep falling for it.Move to Wyoming..ZERO state taxes! No wonder those deer and antelope are playing.They’re not chained to an insatiatable beast in Repugnican clothing!

    1. sick of people's BS says:

      Hey Murph,
      Why are you still here and not in Wyoming? One less liberal won’t hurt our State.

    2. sorry murph says:

      Oh poor murph. My taxes went WAY DOWN.

  2. rcam says:

    Oh but they will blame it all on dayton. and people will still fall for their lies.

    1. Lenny says:

      he is the boss. you sure wanted to blame Bush with a dem congress. you can”t have it both ways.

  3. Lance says:

    Why should it be there in the first place? Its called closing the loopholes in the tax system. Get rid of them all and settle on a tax and stay with it.

  4. G Dog says:


    Bush wielded the VETO pen like one of the Musketeers. The Republicans in Minnesota shut down the state to save the millionaires.

    Big difference

    1. lenny says:

      congress passed a bill dayton would not sign causing shutdown, no difference.

  5. Mel says:

    Did you not read the part of the article that said the government was suppose to reimubrse the cities for the lost revenue, but rarely did?? That means that the lost revenue has been adding up, not just from the start of the signing of the budget bill. If you don’t like how the government creates programs to give breaks and insentives to people, yet thinks the money grows on trees and will come out of thin air, call your local rep and complain to them that they didn’t harves the imaginary money they promised Minnesotans this year, and you are mad. But, don’t blame republicans for being realistic about the state of our economy.

  6. sid says:

    Oakdale cut property taxes by 18%. You don’t have to buy into state handouts if the city lives within its means.

  7. BS says:

    Republican, democrat, their all the same. Their all politicians. All you have to do is look at where we are here in Minnesota and the country to see that neither party is competent for the job they have. What we need is someone who is willing to cut through the smoke and BS and do what needs to be done. We seem to be in a situation where all we have to choose from are these two political parties that have only two objectives. First cover my own butt and second find a way to blame the other party. Perhaps if we the people where to stop supporting their nonsense things would improve.

    1. Jack says:

      I agree, it all starts with term limits at the city level. then we move up to state and federal level.

  8. I'm Just Sayin' says:

    HA HA, I live in Hassan township and thanks to Republican Joyce Peppin, Her Husband, and their followers, my taxes are going down almost 17%. Of course all my neightbors in Roges are paying my share, but so what that is the far right way. Let everyone else pay for what I get.

  9. LBJHHH says:

    The only tax that I pay that I know where it goes is my property tax. You pay Fed and State tax and you have no idea where it goes and for what.

  10. stubby says:

    52% of your propertry taxes goes to the school system. I’d start looking there for waste reductions. Public service employees and their unions….you people support them….now pay them and shut up. Go Walker!

    1. Silly and uneducated but played like a puppet says:

      How’d you get so dumb there Stubby?
      Your facts are about as off base as what – a Michelle Bachmann talkalike robot doll lol

  11. value down taxes up says:

    Maple Grove my value went dow 6% and my taxes went up 4%. I’m calling BS to the city. I don’t care what the state does, the city needs to live below its means. Have you seen all the improvements they have been doing in MG in the worst economy for decades? I say that and MG is actually decent compared to other cities. The waste however is very evident.

  12. stubby says:

    Snow plow operators, police, fire, park workers,teacher, school janitors etc. are all paid by your tax dollars. Their unions fight for the highest packages they can squeeze out of the taxpayers for their members. How many of you have your retirement and healthcare paid for at no cost to you? How many of you have someone else paying for your retirement and healthcare? That is exactly where some/most of your tax dollars are going…to someone elses wages, pension, and healthcare. Keep voting for your unions.

  13. Charles says:

    Stubby, you are an ill informed gent. If you honestly think that you are paying for my health care and retirement, you are completely misguided. I pay a large percentage of my paycheck to cover my healthcare, I pay dues to a union, I put another large chunk away for a retirement plan. YOU are not paying it. Do some research, become educated, and… get a life!

  14. there says:

    What are the property taxes in Hootersville.

  15. Ralph says:

    If you don’t like paying high property taxes, contact the county commissioners.

    Keep track of how they vote.

    Vote the liberal ones OUT.

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