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2012 Market Value Exclusion <br />Town Hall Meeting <br />October 5, 2011 <br />Prepared by the Offices of the <br />County Auditor- Treasurer and County Administrator <br />WMINGG '7 <br />a a. <br />> <br />STATE OF MINNESOTA <br />• The state started out their 2012 — 2013 biennium with a $5 billion deficit. <br />• Market value homestead credit program created approximatel $260 <br />million statewide of residential homestead taxpayer relief or expense for the <br />state. <br />• The state had been underfunding this program since its inception and <br />recently has been drastically reducing the amounts that were paid to local <br />units of government <br />• 2011 Omnibus tax act repealed the existing market value homestead credit <br />and established a new program called homestead market value exclusion. <br />• Under the new program, homeowners taxes are reduced by the exclusion <br />by an estimate4ll-5—gnillion based on pay 2011. <br />• Since the total amount under the exclusion is less than the old credit <br />program there will be less of a benefit to taxpayers under the new law. <br />• A major tax shift is occurring under the new market value exclusion <br />program, as it is funded by other property taxpayers and not the State. <br />1 <br />