Officials: State cuts hurt local property tax payers

Albert Lea and Freeborn County leaders, along with leaders from several surrounding communities, gathered in Albert Lea Wednesday to discuss the concerns and potential solutions behind the recent rapid rise in property taxes.

Because of cuts in state education funding, cuts in aid to cities and counties, and changes in property tax laws, property taxes in Minnesota have increased close to $2.3 billion over the past five years, said Chairman Paul Marquart, DFL-Dilworth, of the Minnesota House Property Tax Relief and Local Sales Tax Committee.

Unfortunately, it’s not an issue that can be solved simply, he said. Effects on property taxes are multifaceted and take into consideration many other elements, including other taxes.

To find out how to solve the increasing problem, the committee is touring the state this week to seek feedback from residents and officials during organized hearings. They met at Skyline Plaza. Other cities included in the hearings are Rochester, Eagan, Little Falls, St. Cloud and Champlin.

Groups in attendance at Wednesday’s meeting talked about the effects of increased property taxes on the people they serve.

Several representatives from city and county levels discussed the effects of recent cuts in local government aid, pointing out that crucial maintenance and infrastructure needs are sometimes being put on hold because local governments do not have the money to do them.

“If we could ever get back to where we were in ’02, it’d be a benefit,” said Wells Mayor Dave Jacobson.

In 2003, Wells was slated for about $900,000 in local government aid but that amount ended up being cut by $100,000, Jacobson said.

This cut was “dramatic,” he said.

Others in attendance also talked about the effects property taxes have on the elderly and on human services departments within local governments.

“This is pretty important for this group of people,” said Albert Lea’s Bob Goldman, who was representing the elderly low-income housing community within the city.

Further discussion was included on how property taxes affect business growth.

As a representative of the Albert Lea business community, Randy Kehr, executive director of the Albert Lea-Freeborn County Chamber of Commerce, talked about how recently Albert Lea has lost many potential businesses to Iowa because of tax-related issues. For years people have repeatedly talked about how the local government aid funding formula is broken, he said.

“We really need to level the playing field ... to create a real competitive edge for Minnesota,” Kehr said.

Marquart said the committee will work to restore local government aid because of its power as an excellent economic tool.

He thanked those who came to voice their opinions and experiences.

“Hearing it from those who work year-in and year-out with it is valuable,” Marquart said.

Anyone interested in offering further input about the rapid rise in property taxes can call the Minnesota Property Tax Comment line at (800) 551-5520 or (651) 297-8391. They can also log onto Minnesota’s Property Tax Comment Web site at www.house.mn/dfl/ptax/propertytaxproject.html.